Wang & Lee Group board approves 250-to-1 reverse share split
Investing.com - Benchmark has reiterated its Buy rating and $40.00 price target on Hub Group (NASDAQ:HUBG), while slightly reducing estimates ahead of the company’s second quarter results. Currently trading at $35.10, InvestingPro analysis suggests the stock is undervalued, with 5 analysts recently revising their earnings estimates upward. The broader analyst consensus ranges from $35 to $46 per share.
The research firm noted that Hub Group has experienced stable but sub-seasonal volumes week-to-week during the second quarter, with neither extreme market condition factored into the company’s full-year guidance materializing. Intermodal volumes have proven more stable than feared, despite weakness in international intermodal volumes due to lower imports. According to InvestingPro data, the company maintains a moderate debt level with a healthy current ratio of 1.36, supporting operational stability during market fluctuations.
Benchmark highlighted that Hub Group continues to see truck-to-rail conversion from customers in the eastern network and is now experiencing similar trends in the local west network, supported by solid rail service and favorable price spreads between intermodal and truck transport. The company’s intermodal volumes could potentially benefit in 2026 from its recently announced acquisition of Marten Transport (NASDAQ:MRTN)’s Intermodal division.
The research firm acknowledged ongoing challenges, including sub-seasonal demand, the possibility that inventory building ahead of tariffs could result in a muted peak season, and tepid transport pricing. While margins in Hub Group’s Logistics segment have remained solid, its brokerage business, representing 36% of Logistics revenue, continues to face pressure.
Benchmark maintained its positive outlook on Hub Group based on the company’s positioning for intermodal volume growth, supported by new rail agreements, effective cost controls, and solid intermodal service. With an overall Financial Health score of "FAIR" from InvestingPro, the company shows particular strength in cash flow management. Discover more insights and 12+ additional ProTips about Hub Group’s performance by subscribing to InvestingPro, including exclusive access to comprehensive Pro Research Reports covering 1,400+ top stocks.
In other recent news, Hub Group has announced an agreement to acquire the intermodal assets of Marten Transport for $51.8 million in cash. This acquisition will include approximately 1,200 refrigerated containers, positioning Hub Group as the second largest provider of temperature-controlled intermodal solutions in North America. The transaction is expected to close by the end of the third quarter, pending customary closing conditions. Hub Group’s first-quarter 2025 earnings report showed an EPS of $0.44, slightly surpassing analysts’ projections, though revenue fell short at $915 million against expectations of $973.86 million. Analysts from Benchmark have raised Hub Group’s stock target to $40, maintaining a Buy rating, while Evercore ISI has adjusted its target to $35, keeping an In Line rating. Despite revenue challenges, Hub Group managed to improve its operating margins, bolstered by a rise in intermodal volume growth in specific regions. However, the company has revised its full-year 2025 EPS guidance downward due to anticipated declines in intermodal volumes. Hub Group’s recent developments reflect both strategic growth initiatives and ongoing challenges in the freight sector.
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