Michael J. Gerdin, Chief Executive Officer of The Heartland Express Inc (NASDAQ: ), recently purchased a significant amount of the company’s stock, according to a new filing with the Securities and Exchange Commission. On September 11, Gerdin acquired 50,000 shares of Heartland Express common stock at an average price of $11.49 to $11.80, for a total transaction of $583,675.
The CEO’s move increased his direct holdings to 1,196,718 shares, as reported in the filing. This job shows the confidence of the executive in the trucking company, which is known for its long-distance and regional transportation services.
Investors often monitor insider purchases as they can be a sign of leadership’s belief in the company’s future performance. The purchase of Gerdin, who also acts as a trustee of the company’s 10% owner, can be seen as a positive indicator for the investment community.
The SEC filing also provided information on various trusts and partnerships related to Gerdin, clarifying his roles and excluding beneficial ownership in certain cases, as detailed in footnotes.
Heartland Express, incorporated in Nevada and headquartered in North Liberty, Iowa, has long been a staple in the trucking industry, providing transportation and transportation services throughout the United States. With this recent stock purchase by its CEO, the company may be attracting more attention from investors looking for signs of internal optimism about its prospects.
In other recent news, Heartland Express Inc. announced the resignation of the chief executive officer of Smith Transport Division, Mr. Michael Donovan. The company awarded Mr. Donovan owns 26,261 shares of common stock in recognition of his work, as disclosed in a recent SEC filing. In analyst news, UBS downgraded Heartland Express from a Buy rating to a Neutral rating and adjusted the target price to $13.00. The company cited extended periods of reduced operating margins and potential operating losses as reasons for the downgrade, forecasting EPS of $0.17 in 2025. Similarly, JPMorgan downgraded Heartland Express from Neutral to Underweight, lowering its price target to $10.00 due to a reassessment of the stock market’s outlook. The company expressed concern about Heartland Express’ strategy to generate revenue by selling used equipment. These latest developments indicate a cautious stance on Heartland Express stock from both UBS and JPMorgan.
InvestingPro Insights
In light of recent insider buying activity at Heartland Express Inc (NASDAQ:HTLD), investors may be looking for additional data points to understand the company’s financial health and future prospects. According to InvestingPro data, Heartland Express currently has a market capitalization of $949.79 million and a Price to Earnings (P/E) ratio of 39.35, which indicates the challenges the company has faced in terms of profitability over the past twelve months. Apart from this, the company has been able to maintain its dividend payments for 22 years in a row, with an annual yield of 0.66 % per share for the last period and an annual yield of 25 June 2024.
InvestingPro Tips highlights that analysts expect lower sales and lower net income this year. And they don’t expect the company to be profitable this year, which is accompanied by a negative P/E ratio. However, Heartland Express is known for its high shareholder yield and operates with a limited level of debt, which may provide reassurance to investors considering the company’s long-term financial stability.
For those looking for an in-depth analysis, InvestingPro offers additional tips on Heartland Express, which can be accessed on their dedicated company page. This information may provide investors with a broader understanding of the company’s financial position and future outlook.
Finally, it is important to note that the InvestingPro Fair Value estimate for Heartland Express stands at $15.31, which is higher than the current price of $11.92 from the previous close, suggesting that it may be undervalued. With the next earnings date scheduled for October 30, 2024, investors will be watching closely for any signs of change or growth that could impact the stock’s direction.
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