Prominent Runners: RPC, Inc. (NYSE:RES), Knight Transportation (NYSE:KNX), Chimera Investment Corporation (NYSE:CIM)

RPC, Inc. (NYSE:RES) increased 0.86% during last trading as the stock added $0.14 to finish the day at $16.35 with about 939,036.00 shares changing hands, compared to its three month average trading volume of 1.53M. The $3.64B market cap company, which fluctuated between $16.05 and $16.36 during the day, currently situated 93.49% above its 52 week low of $8.45 and -2.91% away from its one year high of $16.84. The RSI of 67.66 indicates the stock is overbought at the current levels, sell for now. RPC, Inc. (RPC) is a holding company for several oilfield services companies. The Company provides a range of specialized oilfield services and equipment to oil and gas companies engaged in the exploration, production and development of oil and gas properties across the United States, including the southwest, mid-continent, Gulf of Mexico, Rocky Mountain and Appalachian regions.

Knight Transportation (NYSE:KNX) gained $0.65 to close the day at a new closing price of $28.87, a 2.30% increase in value from its previous closing price that moved the stock 41.08% above its 52 week low of $20.46. A total of 938,856.00 shares exchanged hands during the day compared with its three month average trading volume of 979,343.00. The stock, which fluctuated between $28.14 and $28.99 during the day, currently situated -4.97% below its 52 week high. The stock is up by 2.63% in the past one month and up by 12.55% over the past three months. With a one year target estimate of $27.89 and RSI of 56.11, the stock still has upside potential, making it a hold for now. Knight Transportation, Inc. is a provider of multiple truckload transportation and logistics services, which involve the movement of trailer or container loads of freight from origin to destination for a single customer.

Chimera Investment Corporation (NYSE:CIM) had a light trading with around 938,442.00 shares changing hands compared to its three month average trading volume of 1.42M. The stock traded between $16.19 and $16.34 before closing at the price of $16.28 with 0.12% change on the day. The company is currently trading 65.73% above its 52 week low of $9.82 and -4.12% below its 52 week high of $16.98. Both the RSI indicator and target price of 51.71 and $15.90 respectively, lead us to believe that it could drop over the coming weeks. Chimera Investment Corporation is a real estate investment trust. The Company is primarily engaged in the business of investing, on a leveraged basis, in a diversified portfolio of mortgage assets, including Agency residential mortgage-backed securities (RMBS), Non-Agency RMBS, Agency commercial mortgage backed securities (CMBS), residential mortgage loans and real estate related securities.

News Review: SL Green Realty Corp (NYSE:SLG), Nordic American Tanker Ltd (NYSE:NAT), Knight Transportation (NYSE:KNX)

SL Green Realty Corp (NYSE:SLG) fall -2.15% during last trading as the stock added -$2.29 to finish the day at $104.18 with about 922,832.00 shares changing hands, compared to its three month average trading volume of 657,142.00. The $ 10.79B market cap company, which fluctuated between $103.91 and $106.04 during the day, currently situated 32.00% above its 52 week low of $78.92 and -12.72% away from its one year high of $119.36. The RSI of 55.78 indicates the stock is overbought at the current levels, sell for now.

SL Green Realty Corp. is a self-managed real estate investment trust, with in-house capabilities in property management, acquisitions and dispositions, financing, development and redevelopment, construction and leasing. The Company acquires, owns, repositions, manages and leases commercial office, retail and multifamily properties in the New York Metropolitan area.

Nordic American Tanker Ltd (NYSE:NAT) gained $0.32 to close the day at a new closing price of $14.21, a 2.30% increase in value from its previous closing price that moved the stock 46.91% above its 52 week low of $9.67. A total of 921,609.00 shares exchanged hands during the day compared with its three month average trading volume of 1.30M. The stock, which fluctuated between $13.87 and $14.21 during the day, currently situated -11.57% below its 52 week high. The stock is down by -5.14% in the past one month and down by 6.13% over the past three months. With a one year target estimate of $13.86 and RSI of 44.60, the stock still has upside potential, making it a hold for now.

Nordic American Tankers Limited is an international tanker company. The Company owns approximately 26 vessels, including approximately two new buildings under construction, of approximately 156,000 deadweight tonnage (dwt) each. The Company’s Suezmaxes tankers can carry over one million barrels of oil.

Knight Transportation (NYSE:KNX) had a light trading with around 920,934.00 shares changing hands compared to its three month average trading volume of 911,530.00. The stock traded between $26.49 and $27.23 before closing at the price of $26.99 with 1.54% change on the day. The company is currently trading 46.91% above its 52 week low of $9.67 and -11.57% above its 52 week high of $16.07. Both the RSI indicator and target price of 44.60 and $13.86 respectively, lead us to believe that it could drop over the coming weeks.

Knight Transportation, Inc. is a provider of multiple truckload transportation and logistics services, which involve the movement of trailer or container loads of freight from origin to destination for a single customer. The Company operates through two segments: Trucking and Logistics. The Company operates primarily in the United States with minor operations in Canada and Mexico.

 

Stocks to Watch For: Southwest Gas Corporation (NYSE:SWX), RPC, Inc. (NYSE:RES), Knight Transportation (NYSE:KNX)

Southwest Gas Corporation (NYSE:SWX) increased 2.65% during last trading as the stock added $2.03 to finish the day at $78.71 with about 8.47M shares changing hands, compared to its three month average trading volume of 202,844.00. The $3.77B market cap company, which fluctuated between $77.14 and $79.43 during the day, currently situated 57.87% above its 52 week low of $49.86 and 1.64 % away from its one year high of $77.44. The RSI of 83.91 indicates the stock is overbought at the current levels, sell for now. Southwest Gas Corporation is engaged in the business of purchasing, distributing and transporting natural gas in Arizona, Nevada and California. The Company operates through two segments: natural gas operations and construction services, which includes the operations of the Company’s subsidiary, Centuri Construction Group, Inc., (Centuri). Its natural gas operations segment includes acquiring and arranging delivery of natural gas to its system in sufficient quantities. It acquires natural gas from various sources and a mix of purchase provisions, which includes spot market and firm supplies.

RPC, Inc. (NYSE:RES) gained $0.40 to close the day at a new closing price of $15.53, a 2.64% increase in value from its previous closing price that moved the stock 83.79% above its 52 week low of $8.45. A total of 1.73M shares exchanged hands during the day compared with its three month average trading volume of 1.21M. The stock, which fluctuated between $14.98 and $15..62 during the day, currently situated -7.78% below its 52 week high. The stock is down by -16.84% in the past one month and up by 6.44 % over the past three months. With a one year target estimate of $14.50 and RSI of 54.11, the stock still has upside potential, making it a hold for now. RPC, Inc. (RPC) is a holding company for several oilfield services companies. The Company provides a range of specialized oilfield services and equipment to oil and gas companies engaged in the exploration, production and development of oil and gas properties across the United States, including the southwest, mid-continent, Gulf of Mexico, Rocky Mountain and Appalachian regions, and in selected international markets.

Knight Transportation (NYSE:KNX) had a light trading with around 1.17M shares changing hands compared to its three month average trading volume of 905,041.00. The stock traded between $25.77 and $26.84 before closing at the price of $26.58 with 2.63% change on the day. The company is currently trading 29.89% above its 52 week low of $20.46 and -7.49% below its 52 week high of $28.73. Both the RSI indicator and target price of 52.91 and $26.56 respectively, lead us to believe that it could drop over the coming weeks. Knight Transportation, Inc. is a provider of multiple truckload transportation and logistics services, which involve the movement of trailer or container loads of freight from origin to destination for a single customer. The Company operates through two segments: Trucking and Logistics. The Company operates primarily in the United States with minor operations in Canada and Mexico. The Company’s Trucking segment consists of approximately three operating units: dry van truckload (Dry Van); temperature-controlled truckload (Refrigerated) and drayage services (Drayage).

Why Knight Transportation (NYSE:KNX) got downgraded?

Knight Transportation (NYSE:KNX) received a stock rating downgrade from Avondale on Jun-23-16. In a note to investors, the firm issued a Mkt Underperform rating. The analysts previously had an Mkt Perform rating on the stock.

Analysts have a consensus target price of $26.97 in the 12-month period. The price objective is 3.02% higher than the recent closing price of $26.18. The 52-week price range is $20.46-$28.73 and the company has a market capitalization of $2.06 billion. Analysts covering the shares maintain a consensus Buy rating, according to Zacks Investment Research. One analyst has rated the stock with a sell rating, 14 has assigned a hold rating, 2 says it’s a buy, and 1 have assigned a strong buy rating to the company.

Knight Transportation (KNX) on April 20, 2016 reported revenue and net income for the first quarter ended March 31, 2016.

Dave Jackson, President and Chief Executive Officer, commented on the quarter, “The freight environment was less attractive in the first quarter of 2016 compared with the same quarter a year ago. We attribute the change to excess trucking capacity, higher inventory ratios, and weak U.S. industrial production for the full quarter of this year. Freight volumes and revenue per loaded mile remained relatively stable during the first quarter compared with the 2015 quarter. Opportunities in the non-contract market were challenged by falling load counts and additional price competition, particularly from non-asset brokers. The more competitive freight environment and fewer non-contract opportunities have begun to pressure our overall revenue per loaded mile. However, with significantly declining new truck orders, the recent expansion of industrial production in March, and increased regulatory burdens expected to phase in over the next several quarters, we currently expect an improved environment later in the year.

“We have remained focused on improving the productivity of our assets and expanding load volumes and margins in our logistics segment. During the first quarter, when compared to the same quarter last year, we improved our miles per tractor 1.8%, grew our brokerage load volumes 31%, and expanded our brokerage gross margin by 350 basis points. A slightly reduced tractor count, essentially flat revenue per tractor, and declines in revenue per load in our logistics business led to a 1.4% decline in consolidated revenue, excluding trucking fuel surcharge.

“Our diluted earnings per share were $0.28, which compares to $0.36 per share in the first quarter of 2015. During the quarter, a $1.9 million pretax loss in our sourcing business and an approximately $1.0 million impact of an increase in effective tax rate combined to negatively impact our results by approximately $0.03 per diluted share. Less gain on sale of revenue equipment and increased net fuel cost as a percentage of revenue also negatively impacted our results by approximately an additional $0.04 per diluted share. Driver pay continues to be inflationary when compared to the same quarter last year, but was partially offset by our cost control efforts in operations and maintenance.”

Downgrade of the Day: Knight Transportation (NYSE:KNX)

Knight Transportation (NYSE:KNX) received a stock rating downgrade from BofA/Merril on Jun-21-16. In a note to investors, the firm issued a Neutral rating. The analysts previously had an Neutral rating on the stock.

Analysts have a consensus target price of $26.97 in the 12-month period. The price objective is 1.16% higher than the recent closing price of $26.66. The 52-week price range is $20.46-$28.73 and the company has a market capitalization of $2.09 billion. Analysts covering the shares maintain a consensus Buy rating, according to Zacks Investment Research. One analyst has rated the stock with a sell rating, 13 has assigned a hold rating, 2 says it’s a buy, and 2 have assigned a strong buy rating to the company.

Knight Transportation (KNX) on April 20, 2016 reported revenue and net income for the first quarter ended March 31, 2016.

Dave Jackson, President and Chief Executive Officer, commented on the quarter, “The freight environment was less attractive in the first quarter of 2016 compared with the same quarter a year ago. We attribute the change to excess trucking capacity, higher inventory ratios, and weak U.S. industrial production for the full quarter of this year. Freight volumes and revenue per loaded mile remained relatively stable during the first quarter compared with the 2015 quarter. Opportunities in the non-contract market were challenged by falling load counts and additional price competition, particularly from non-asset brokers. The more competitive freight environment and fewer non-contract opportunities have begun to pressure our overall revenue per loaded mile. However, with significantly declining new truck orders, the recent expansion of industrial production in March, and increased regulatory burdens expected to phase in over the next several quarters, we currently expect an improved environment later in the year.

“We have remained focused on improving the productivity of our assets and expanding load volumes and margins in our logistics segment. During the first quarter, when compared to the same quarter last year, we improved our miles per tractor 1.8%, grew our brokerage load volumes 31%, and expanded our brokerage gross margin by 350 basis points. A slightly reduced tractor count, essentially flat revenue per tractor, and declines in revenue per load in our logistics business led to a 1.4% decline in consolidated revenue, excluding trucking fuel surcharge.

“Our diluted earnings per share were $0.28, which compares to $0.36 per share in the first quarter of 2015. During the quarter, a $1.9 million pretax loss in our sourcing business and an approximately $1.0 million impact of an increase in effective tax rate combined to negatively impact our results by approximately $0.03 per diluted share. Less gain on sale of revenue equipment and increased net fuel cost as a percentage of revenue also negatively impacted our results by approximately an additional $0.04 per diluted share. Driver pay continues to be inflationary when compared to the same quarter last year, but was partially offset by our cost control efforts in operations and maintenance.”

Today’s Hot Buzz: Knight Transportation (NYSE:KNX)

The shares of Knight Transportation (NYSE:KNX) currently has mean rating of 2.70 while 2 analysts have recommended the shares as “BUY”, 4 recommended as “OUTPERFORM” and 16 recommended as “HOLD”. The rating score is on a scale of 1 to 5 where 1 stands for strong buy and 5 stands for sell.

The company’s mean estimate for sales for the current quarter ending Sep 16 is 292.34 million by 15 analysts. The means estimate of sales for the year ending Dec 16 is 1.15B by 20 analysts.

The mean price target for the shares of Knight Transportation (NYSE:KNX) is at 26.97 while the highest price target suggested by the analysts is 32.00 and low price target is 21.00. The mean price target is calculated keeping in view the consensus of 16 brokerage firms.

The average estimate of EPS for the current fiscal quarter for Knight Transportation (NYSE:KNX) stands at 0.32 while the EPS for the current year is fixed at 1.27 by 24 analysts.

The next one year’s EPS estimate is set at 1.46 by 24 analysts while a year ago the analysts suggested the company’s EPS at 1.27. The analysts also projected the company’s long-term growth at 10.02% for the upcoming five years.

In its latest quarter ended on 31st Mar 2016, Knight Transportation (NYSE:KNX) reported earnings of $0.28. The posted earnings missed the analyst’s consensus by -$0.01 with the surprise factor of -3.40%. In the matter of earnings surprises, the term “Cockroach Effect” is often implied. Cockroach Effect is a market theory that suggests that when a company reveals bad news to the public, there may be many more related negative events that have yet to be revealed. In the case of earnings surprises, if a company is suggesting a negative earnings surprise it means there are more to come.

Knight Transportation (KNX) on April 20, 2016 reported revenue and net income for the first quarter ended March 31, 2016.

Dave Jackson, President and Chief Executive Officer, commented on the quarter, “The freight environment was less attractive in the first quarter of 2016 compared with the same quarter a year ago. We attribute the change to excess trucking capacity, higher inventory ratios, and weak U.S. industrial production for the full quarter of this year. Freight volumes and revenue per loaded mile remained relatively stable during the first quarter compared with the 2015 quarter. Opportunities in the non-contract market were challenged by falling load counts and additional price competition, particularly from non-asset brokers. The more competitive freight environment and fewer non-contract opportunities have begun to pressure our overall revenue per loaded mile. However, with significantly declining new truck orders, the recent expansion of industrial production in March, and increased regulatory burdens expected to phase in over the next several quarters, we currently expect an improved environment later in the year.

“We have remained focused on improving the productivity of our assets and expanding load volumes and margins in our logistics segment. During the first quarter, when compared to the same quarter last year, we improved our miles per tractor 1.8%, grew our brokerage load volumes 31%, and expanded our brokerage gross margin by 350 basis points. A slightly reduced tractor count, essentially flat revenue per tractor, and declines in revenue per load in our logistics business led to a 1.4% decline in consolidated revenue, excluding trucking fuel surcharge.