Dimensional Fund Advisors LP has reduced its stake in Old Dominion Freight Line, Inc. (NASDAQ:ODFL) by 3.9% during the third quarter of 2023, according to its latest filing with the Securities and Exchange Commission (SEC). Following the sale of 47,393 shares, the institutional investor now holds 1,167,203 shares in the transportation company, representing approximately 0.56% of Old Dominion Freight Line, valued at around $164.32 million.
Several other institutional investors have also adjusted their investments in Old Dominion Freight Line recently. Financial Gravity Companies Inc. acquired a new position in the company during the second quarter, investing approximately $26,000. E Fund Management Hong Kong Co. Ltd. significantly increased its holdings by 175.7% in the third quarter, now owning 193 shares valued at $27,000. Westside Investment Management Inc. also doubled its position, now holding 196 shares worth $27,000 after acquiring an additional 98 shares. Raiffeisen Bank International AG entered the stock with a new position worth $37,000, while Zions Bancorporation National Association UT increased its stake by 273.5%, now owning 437 shares valued at $62,000. Collectively, hedge funds and other institutional investors own approximately 77.82% of the company’s stock.
Stock Performance and Financial Overview
On Tuesday, Old Dominion Freight Line opened at $197.22. The stock’s 50-day moving average stands at $184.76, with a 200-day average of $158.43. The company boasts a market capitalization of $41.11 billion, a price-to-earnings (P/E) ratio of 40.83, and a P/E/G ratio of 4.08. Over the past year, its stock has fluctuated between a low of $126.01 and a high of $221.63.
In its latest quarterly earnings report, released on February 4, 2024, Old Dominion Freight Line reported earnings per share of $1.09, slightly exceeding analysts’ expectations of $1.06. Revenue for the quarter reached $1.31 billion, surpassing the anticipated $1.30 billion. Despite these positive figures, the company experienced a 5.7% decline in revenue compared to the previous year, down from $1.23 earnings per share during the same quarter in 2023. Analysts project that Old Dominion Freight Line will achieve earnings per share of $5.68 for the current fiscal year.
Dividend Increase and Insider Activity
Old Dominion Freight Line has announced an increase in its quarterly dividend, which is set to be paid on March 18, 2024. Shareholders on record as of March 4, 2024, will receive a dividend of $0.29 per share, reflecting an annualized dividend of $1.16 and a yield of 0.6%. This increase follows a previous quarterly dividend of $0.28, and the company’s current dividend payout ratio is 24.02%.
In related news, significant insider transactions have occurred recently. Director Bradley R. Gabosch sold 3,134 shares on February 18, 2024, at an average price of $194.27, amounting to a total value of $608,842.18. Following the sale, Gabosch retains 11,278 shares, valued at approximately $2.19 million. Similarly, Chairman David S. Congdon sold 52,000 shares on February 19, 2024, for about $10.13 million, reducing his position by 6.80%.
Over the past ninety days, insiders have sold a total of 80,134 shares, valued at $15.64 million. Currently, insiders hold 10.00% of the company’s stock.
Analyst Ratings and Future Outlook
Wall Street analysts are optimistic about Old Dominion Freight Line. Research firms have published various ratings, with Raymond James Financial raising its price target from $180.00 to $213.00 and giving the company an “outperform” rating. Citigroup maintained a “neutral” rating with a price objective of $216.00, while Truist Financial set a target price of $225.00. Benchmark restated a “hold” rating, and The Goldman Sachs Group confirmed a “buy” rating with a price target of $195.00.
Overall, nine analysts have rated the stock as a Buy, thirteen as a Hold, and four have issued a Sell rating. The consensus rating is a Hold, with a target price of $190.50, according to data from MarketBeat.
Old Dominion Freight Line, based in Thomasville, North Carolina, is a less-than-truckload (LTL) transportation company that provides regional, inter-regional, and national freight services. Founded in 1934, the company has expanded into a national freight network with a comprehensive system of service centers and terminals, supporting a variety of industries and businesses.
