OMAHA - Werner Enterprises, Inc. (NASDAQ:WERN), a prominent transportation and logistics company, disclosed on Tuesday, May 14, 2024, that its Board of Directors has sanctioned a new stock repurchase initiative. The company is now authorized to buy back up to 5 million shares of its common stock. This new program supersedes the prior authorization, which had roughly 1.6 million shares still eligible for repurchase. The timing and volume of repurchases will be contingent on market conditions and other relevant factors, and the authorization will remain in effect until potentially withdrawn by the Board.
In addition to the repurchase program, Werner Enterprises announced a regular quarterly cash dividend of $0.14 per common share, maintaining its streak of quarterly dividends since July 1987. Stockholders on record as of the close of business on July 1, 2024, will be eligible for the dividend, which is scheduled for payment on July 17, 2024.
Werner Enterprises has a longstanding history in the truckload transportation and logistics sector, providing services throughout the United States, Mexico, and Canada. The company reported revenues of $3.3 billion in 2023 and is recognized for its modern fleet, nearly 14,000 associates, and the Werner EDGE® technology platform. Werner offers a suite of services including Dedicated and One-Way Truckload, as well as comprehensive Logistics services encompassing truckload brokerage, freight management, intermodal, and final mile solutions.
InvestingPro Insights
Werner Enterprises (NASDAQ:WERN) has not only initiated a new stock repurchase program but also continues to demonstrate a commitment to its shareholders through consistent dividends. Reflecting on the company's financial health and shareholder policies, InvestingPro data and tips offer further insight into Werner's performance and future expectations.
With a market capitalization of $2.38 billion and a price-to-earnings (P/E) ratio of 28.49, Werner Enterprises stands out in the transportation sector. Despite a slight decline in revenue growth over the last twelve months as of Q1 2024, with a -4.12% change, the company's gross profit margin remains strong at 21.14%. This indicates that Werner has been efficient in managing its cost of goods sold relative to its sales.
InvestingPro Tips highlight that Werner Enterprises has raised its dividend for 3 consecutive years and has maintained dividend payments for an impressive 38 consecutive years. This shows a reliable track record of returning value to its shareholders. Additionally, the company's liquid assets exceed its short-term obligations, suggesting a solid financial position to meet its immediate liabilities.
For those interested in deeper analysis, there are 5 additional InvestingPro Tips available for Werner Enterprises, which can be accessed through the dedicated page at: https://www.investing.com/pro/WERN. To enhance the experience, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
While the company is expected to see a drop in net income this year, analysts predict Werner will remain profitable, as it has been over the last twelve months. This aligns with the company's ongoing strategies, including the recent stock repurchase initiative and the steady dividend payouts, which collectively underscore Werner's commitment to shareholder value.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.