Adversity is less terrifying than hope: C.H. Robinson Worldwide Inc. (CHRW)

C.H. Robinson Worldwide Inc. (NASDAQ: CHRW) stock fell -1.57% on Friday to $107.52 against a previous-day closing price of $109.23. With 1.1 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.26 million shares. During the session, the Integrated Freight & Logistics company that operates in wider Industrials sector, reached to the highest price of $109.77 whereas the lowest price it dropped to was $106.95. The 52-week range on CHRW shows that it touched its highest point at $115.99 and its lowest point at $85.80 during that stretch. It currently has a 1-year price target of $111.14. With its current market cap of 12.50 billion, CHRW has annualized dividend of $2.20 while the current yield stands at 2.05%. Beta for the stock currently stands at 0.75.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of CHRW was down-trending over the past week, with a drop of -0.51%, but this was up by 6.41% over a month. Three-month performance dropped to -2.74% while six-month performance rose 16.19%. The stock gained 18.99% in the past year, while it has lost -0.10% so far this year. A look at the trailing 12-month EPS for CHRW yields 8.32 with Next year EPS estimates of 6.58. For the next quarter, that number is 2.18. This implies an EPS growth rate of 69.60% for this year and -23.68% for next year. EPS is expected to grow by 5.48% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 11.90%.

Float and Shares Shorts:

At present, 130.50 million CHRW shares are outstanding with a float of 126.32 million shares on hand for trading. On Jul 14, 2022, short shares totaled 9.88 million, which was 7.76% higher than short shares on Jun 14, 2022. In addition to Mr. Robert C. Biesterfeld Jr. as the firm’s CEO, Pres & Director, Mr. Michael Paul Zechmeister serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 96.25% of CHRW’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 54.76% of CHRW, in contrast to 41.92% held by mutual funds. Shares owned by individuals account for 13.45%. As the largest shareholder in CHRW with 11.85% of the stake, The Vanguard Group, Inc. holds 15,082,240 shares worth 15,082,240. A second-largest stockholder of CHRW, First Eagle Investment Management, holds 10,680,842 shares, controlling over 8.39% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in CHRW, holding 10,078,837 shares or 7.92% stake. With a 5.84% stake in CHRW, the First Eagle Global Fund is the largest stakeholder. A total of 7,426,526 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.95% of CHRW stock, is the second-largest Mutual Fund holder. It holds 3,751,145 shares valued at 380.25 million. Vanguard Mid Cap Index Fund holds 2.30% of the stake in CHRW, owning 2,930,022 shares worth 297.02 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CHRW since 27 analysts follow the stock currently. There are 8 analysts who recommend BUY ratings, while 3 suggest SELL ratings. Of the remaining analysts, 15 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With CHRW analysts setting a high price target of $135.00 and a low target of $66.00, the average target price over the next 12 months is $111.17. Based on these targets, CHRW could surge 25.56% to reach the target high and fall by -38.62% to reach the target low. Reaching the average price target will result in a growth of 3.39% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. CHRW will report FY 2022 earnings on 02/01/2023. Analysts have provided yearly estimates in a range of $9.65 being high and $7.36 being low. For CHRW, this leads to a yearly average estimate of $8.68. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. C.H. Robinson Worldwide Inc. surprised analysts by $0.53 when it reported $2.52 EPS against a consensus estimate of $1.98. The surprise factor in the prior quarter was $0.50. Based on analyst estimates, the high estimate for the next quarter is $2.56 and the low estimate is $1.77. The average estimate for the next quarter is thus $2.16.

Dividends & Yield:

In terms of dividends, CHRW has a current ratio of $2.2, which is $2.2 over the trailing 12-months, while a dividend of $1.97 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and CHRW currently yields $2.01. In the past year, CHRW’s dividend yield has been $2.01, but when looking at the stock over the past five years, its yield has been $2.23. Accordingly, CHRW has a current buyback yield of $6.28. This was $6.28 for the TTM, and it was $2.77 for the past five years.

Summary of Insider Activity:

Insiders traded CHRW stock several times over the past three months with 6 Buys and 7 Sells. In these transactions, 54,068 shares were bought while 64,296 shares were sold. The number of buy transactions has increased to 55 while that of sell transactions has risen to 34 over the past year. The total number of shares bought during that period was 575,722 while 231,022 shares were sold.

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