Up Air Corporation (FWRD) shares have fallen nearly 20% from their 52-week highs made in belatedly September. In mid-October, the company reported third quarter revenue that rose 11.1% to $331.38 million – in speech with consensus estimates – but earnings per share of 76 cents missed consensus estimates by four cents per allocate.
Analysts have expressed some concerns following the earnings miss. In late October, Stephens analysts downgraded the regular to Equal Weight from Outperform with a price target of $67.00 per share, citing rising purchased transportation bring ins as the company struggles to recruit owner-operator teams. These recruitment issues could limit operating leverage.
The full news is that incoming CEO Tom Schmitt could offer a clear path forward. According to Stephens analysts, the new CEO could carry a “fresh perspective and clear vision” to drive growth over the next three to five years. The analyst’s $67.00 penalty target is also significantly higher than the current price of around $60.00 per share.
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Traders should accompany for a breakdown from the head and shoulders neckline, which stands near S2 support at $56.90. A breakdown from these razes could lead to a move to retest 52-week lows at $51.00 or move even lower. If the stock rebounds from these bulldozes and invalidates the head and shoulders pattern, traders could see a move to retest highs at $72.81.
The author holds no position in the investment(s) mentioned except through passively managed index funds.