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Investing.com - Benchmark has reiterated its Buy rating and $55.00 price target on Knight Transportation (NYSE:KNX), citing the company’s strong positioning despite tariff concerns. According to InvestingPro data, analysts maintain a bullish consensus with price targets ranging from $43 to $68, suggesting potential upside. The stock currently trades at $43.94, with a market capitalization of $7.07 billion.
The research firm believes Knight Transportation, as the largest for-hire carrier, will outperform peers and is best positioned for a recovery in the truckload (TL) market. Benchmark highlighted the company’s successful cost reduction efforts in its Truckload segment, which resulted in lower cost per mile in the second quarter. InvestingPro analysis shows the company maintains a solid gross profit margin of 24.14%, though revenue declined 2.54% in the last twelve months.
While USX continues to impact overall margins, Benchmark notes it alone could add approximately $0.75-$0.80 to medium-term earnings per share, representing about 35% of their mid-cycle earnings estimate upside of $4.20. The second quarter showed a 300-basis-point year-over-year improvement in USX margins and a 250-basis-point improvement for legacy trucking businesses. InvestingPro Tips highlight that Knight Transportation has maintained dividend payments for 22 consecutive years, with a current dividend yield of 1.65%.
Knight Transportation has multiple initiatives underway to improve its LTL (less-than-truckload) business by increasing yield and reducing costs. These initiatives and new business awards are expected to partially offset normal seasonal operating margin degradation in the second half of the year.
Benchmark sees potential upside to $64 for Knight Transportation shares, suggesting significant growth opportunity beyond their current price target.
In other recent news, Knight-Swift Transportation Holdings Inc. announced its second-quarter 2025 earnings, reporting an adjusted earnings per share (EPS) of $0.35. This figure surpassed the consensus forecast of $0.33, indicating a stronger-than-expected performance. However, the company experienced a slight revenue shortfall, with reported revenue of $1.86 billion, just below the anticipated $1.87 billion. In addition, Knight-Swift declared a quarterly dividend of $0.18 per share, payable to stockholders of record on September 5, 2025. Analyst firm Stifel raised its price target for Knight Transportation to $47.00, maintaining a Hold rating, following the company’s earnings report. Benchmark also reiterated its Buy rating with a $55.00 price target, noting that all segments except Intermodal performed in line or above expectations. Meanwhile, Secretary of State Marco Rubio announced a halt to the issuance of worker visas for commercial truck drivers, which may impact trucking stocks, including Knight-Swift. These developments provide a comprehensive view of Knight-Swift’s recent activities and market positioning.
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