Knight Transportation (KNX – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst J. Bruce Chan from Stifel Nicolaus maintained a Hold rating on the stock and has a $42.00 price target.
J. Bruce Chan’s rating is based on a combination of factors affecting Knight Transportation’s performance and outlook. Despite reporting better-than-expected earnings for the first quarter of 2025, largely due to cautious sentiment and effective cost control measures, the company faces significant challenges. These include a reduction in guidance for the second quarter and a lack of visibility beyond that period due to prevailing market and trade policy uncertainties.
Additionally, the trucking market experienced a pause in momentum, with revenue declines and a reduction in fleet size following the acquisition of US Xpress. While Knight has made efforts to control costs and improve asset utilization, the broader market conditions remain uncertain, particularly with rising blank sailings from Asia and potential reductions in West Coast port volumes. These factors contribute to a cautious outlook, justifying the Hold rating as the company navigates these headwinds.
In another report released yesterday, Evercore ISI also maintained a Hold rating on the stock with a $44.00 price target.
Based on the recent corporate insider activity of 47 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of KNX in relation to earlier this year.