What Happened?
Shares of logistics solutions provider Hub Group (NASDAQ: HUBG) jumped 3.2% in the afternoon session after the company reported mixed third-quarter 2025 results, where a beat on revenue and key profitability metrics, along with an analyst price target increase, outweighed an earnings miss and a guidance cut. The logistics provider's revenue for the quarter came in at $934.5 million, surpassing analyst estimates, although it marked a 5.3% decrease year over year. However, its GAAP earnings per share of $0.47 slightly missed Wall Street's expectations of $0.48. Despite the earnings miss, investors were encouraged by a significant 7.7% beat on Adjusted EBITDA, a key measure of profitability. Looking ahead, Hub Group lowered its full-year revenue guidance to a midpoint of $3.65 billion, slightly below consensus, but raised its full-year earnings per share forecast, which topped estimates. Following the report, analysts at Evercore ISI Group maintained their "In-Line" rating but raised their price target to $38.00 from $37.00, adding to the positive sentiment.
After the initial pop the shares cooled down to $36.70, up 3.5% from previous close.
Is now the time to buy Hub Group? Access our full analysis report here.
What Is The Market Telling Us
Hub Group’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 17 days ago when the stock gained 2.6% on the news that Raymond James upgraded the stock's rating to 'Outperform' from 'Market Perform' and set a new price target of $40. The upgrade reflected the firm's view that Hub Group was positioned for growth in its intermodal business, which involves moving goods using multiple forms of transport like trains and trucks. Analysts highlighted the potential benefits from a possible merger between two of its primary railroad partners, Union Pacific and Norfolk Southern. Raymond James also believed the company would benefit from a cyclical recovery as its sector emerged from a downturn. The firm noted that near-term challenges were likely already factored into the stock's price, suggesting a more positive outlook ahead.
Hub Group is down 16.9% since the beginning of the year, and at $36.70 per share, it is trading 31% below its 52-week high of $53.20 from November 2024. Investors who bought $1,000 worth of Hub Group’s shares 5 years ago would now be looking at an investment worth $1,471.
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