What Happened?

Shares of freight delivery company Knight-Swift Transportation (NYSE: KNX) jumped 4.8% in the afternoon session after Deutsche Bank upgraded the stock from 'Hold' to 'Buy' and increased its price target. An analyst at the bank made the change, pointing to a more positive outlook for the transportation company. The price target was raised to $53.00 from a previous figure of $43.00. This type of upward revision from a major financial firm often signals increased confidence in a company's future performance, which can attract more buyers to the stock.

After the initial pop the shares cooled down to $41.65, up 4.5% from previous close.

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What Is The Market Telling Us

Knight-Swift Transportation’s shares are not very volatile and have only had 7 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 biggest move we wrote about over the last year was 8 months ago when the stock gained 6.4% on the news that the company reported impressive fourth-quarter results, which beat analysts' EPS expectations. Its EPS guidance for next quarter also came in higher than Wall Street's estimates. 

On the other hand, its EBITDA missed significantly, and its revenue fell slightly short of Wall Street's estimates. The revenue shortfall was largely expected due to operating challenges from hurricanes and port strike disruptions. Overall, this was a mixed quarter. However, the market seemed to be focused on the positive aspect, especially the strong earnings guidance.

Knight-Swift Transportation is down 21% since the beginning of the year, and at $41.65 per share, it is trading 30.1% below its 52-week high of $59.60 from November 2024. Investors who bought $1,000 worth of Knight-Swift Transportation’s shares 5 years ago would now be looking at an investment worth $985.91.

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