Proxy advisors oppose Forward Air directors’ reelection

Published 02/06/2025, 21:06
Proxy advisors oppose Forward Air directors’ reelection

CLEVELAND - Ancora Holdings Group, LLC, a significant shareholder of Forward Air Corporation (NASDAQ:FWRD), announced today that Glass Lewis & Co., a leading independent proxy advisory firm, has recommended that shareholders vote against the reelection of three board members at the upcoming 2025 Annual Meeting of Shareholders. This recommendation aligns with that of another proxy advisory firm, Institutional Shareholder Services Inc. (ISS), concerning the directors George S. Mayes, Jr., Javier Polit, and Laurie A. Tucker.

Glass Lewis expressed concerns about the directors’ ability to effectively oversee the company’s strategic review process, especially in light of the mishandled Omni deal. They questioned the directors’ capacity to enhance shareholder value during transformative transactions. According to InvestingPro’s comprehensive analysis, which includes over 30 key metrics and exclusive insights available to subscribers, the company currently shows weak financial health with negative earnings per share of -$28.54 and challenges in making interest payments on its debt.

Fredrick D. DiSanto, Chairman and CEO of Ancora Holdings, and James Chadwick, President of Ancora Alternatives, stated that the support from both Glass Lewis and ISS for the removal of the legacy directors underscores the need for change. They believe that voting against the directors’ reelection will ensure a thorough and value-maximizing sale process of the company. The urgency for change is reflected in Forward Air’s financial metrics, with InvestingPro’s analysis indicating the company is not expected to be profitable this year, despite revenue growth of 63.7% in the last twelve months.

Ancora Holdings Group, founded in 2003, provides a range of financial services including investment advisory, wealth management, retirement planning, and insurance solutions. The firm, known for its support of union labor, has a history of engaging with union groups and public pension plans to deliver long-term value. Ancora Alternatives, the alternative asset management division of Ancora Holdings, focuses on activism, multi-strategy, and commodities investments. For detailed insights into Forward Air’s financial health, valuation metrics, and growth prospects, investors can access the complete Pro Research Report available on InvestingPro, which provides comprehensive analysis of over 1,400 US stocks.

The press release from Ancora Holdings Group emphasizes that this is not a solicitation for proxy authority and they are not seeking proxy cards from shareholders. The information is based on a press release statement.

In other recent news, Forward Air Corporation reported its first-quarter 2025 earnings, which fell short of analyst expectations. The company posted an earnings per share (EPS) of -$1.68, significantly missing the forecasted -$0.44, while revenue was $613 million, below the anticipated $651.3 million. Despite the earnings miss, Forward Air saw a 13.2% year-over-year revenue increase, largely attributed to its acquisition of Omni Logistics LLC. Stifel analysts responded by lowering Forward Air’s price target to $21, maintaining a Hold rating, while Jefferies reduced their target to $35 but kept a Buy rating. Both firms highlighted the challenges and opportunities in the company’s strategic pricing and integration efforts. Forward Air’s management has set an ambitious goal to double its revenue to $5 billion within five years, focusing on organic growth and commercial integration. Meanwhile, Irenic Capital Management announced plans to vote against certain legacy directors of Forward Air, citing governance concerns related to the Omni acquisition. These developments highlight a period of transition and strategic realignment for the company.

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