PHOENIX - Knight-Swift Transportation Holdings Inc. (NYSE: KNX), a major player in North America's freight transportation sector, declared a quarterly cash dividend of $0.16 per share. This dividend aligns with the company's established cash dividend policy, which is reviewed quarterly by its board of directors. The payment is scheduled for stockholders listed on record as of December 6, 2024, with the distribution date set for December 23, 2024.
Knight-Swift operates as one of the continent's largest and most comprehensive freight transportation providers, offering a wide array of truckload transportation and logistics services, including less-than-truckload (LTL) options. Utilizing an extensive network of business units and terminals across the United States and Mexico, the company caters to a broad customer base throughout North America. Knight-Swift also boasts the country's largest tractor fleet and partners with third-party equipment providers to enhance their service offerings.
The announcement of the dividend follows the company's regular evaluation of its financial performance. While the declaration of future dividends remains under the discretion of the board and is contingent on multiple factors, the current declaration is a reflection of the company's financial health and commitment to providing shareholder value.
It is important to note that forward-looking statements are present in the company's press release. These statements are based on current market conditions, management's beliefs, and expectations, which are subject to risks and uncertainties that could cause actual results to differ materially. Factors that may influence future dividends and financial results include the company's cash flow and needs, legal compliance, financing arrangement terms, tax law changes, and overall financial condition. These potential risks and uncertainties, along with others, are periodically outlined in the company's filings with the Securities and Exchange Commission.
This information is based on a press release statement from Knight-Swift Transportation Holdings Inc.
In other recent news, Knight Transportation (NYSE:KNX), a prominent truckload carrier, experienced a series of financial evaluations. Citi downgraded Knight Transportation from Neutral to Sell, anticipating challenges ahead despite potential gains in the freight industry. In contrast, TD Cowen maintained a positive stance, raising the stock's price target to $56 and reiterating a Buy rating. BofA Securities also increased Knight-Swift's price target to $58 from $57 after the company's third-quarter earnings surpassed projections.
Knight-Swift reported a 5.3% revenue decline, excluding fuel surcharges, primarily due to the recent acquisition of U.S. Xpress. Despite this, the company saw a slight improvement in the consolidated adjusted operating ratio and growth in intermodal revenue for the first time in six quarters.
The company provided forward-looking guidance for the fourth quarter of 2024 and the first quarter of 2025, with adjusted EPS projected to range from $0.32 to $0.36 and $0.29 to $0.33, respectively. Amid these recent developments, Knight-Swift anticipates a gradual market recovery in 2025, with potential rate increases and margin enhancements due to investments in terminal networks.
InvestingPro Insights
Knight-Swift Transportation Holdings Inc.'s recent dividend declaration aligns with its strong track record of shareholder returns. According to InvestingPro data, the company has maintained dividend payments for 21 consecutive years and has raised its dividend for 4 consecutive years. This consistency underscores Knight-Swift's commitment to returning value to shareholders, even in the face of market fluctuations.
The company's current dividend yield stands at 1.09%, with a notable dividend growth of 14.29% over the last twelve months. This growth rate outpaces the company's revenue growth of 7.54% for the same period, suggesting a prioritization of shareholder returns.
Knight-Swift's financial performance has been mixed, with a market capitalization of $9.53 billion and a high P/E ratio of 255.39. The company's revenue for the last twelve months reached $7.48 billion, although it experienced a quarterly revenue decline of 7.09% in Q3 2024. Despite this, Knight-Swift remains profitable, with analysts predicting continued profitability for the year.
InvestingPro Tips highlight that Knight-Swift has shown significant returns over the last week, month, and three months, indicating positive market sentiment. However, it's trading at a high earnings multiple, which investors should consider when evaluating the stock.
For those interested in a deeper analysis, InvestingPro offers 10 additional tips for Knight-Swift, providing a more comprehensive view of the company's financial health and market position.
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