On December 31, 2024, FMR LLC (Trades, Portfolio) made a strategic decision to reduce its holdings in Knight-Swift Transportation Holdings Inc (NYSE: KNX) by 206,842 shares. This transaction brought FMR LLC (Trades, Portfolio)'s total shares in the company to 8,096,350, representing a 5% position in the firm's portfolio. The shares were traded at a price of $53.04 each. This move reflects a slight adjustment in FMR LLC (Trades, Portfolio)'s investment strategy concerning Knight-Swift, a leading player in the U.S. transportation industry.
FMR LLC (Trades, Portfolio): A Legacy of Innovation and Growth
Founded in 1946 by Edward C. Johnson II, FMR LLC (Trades, Portfolio), also known as Fidelity Investments, has a storied history of risk-taking and investing in growth potential. The firm is renowned for managing significant funds like the Magellan Fund and pioneering innovative financial services. Under the leadership of Abigail Johnson since 2014, FMR LLC (Trades, Portfolio) continues to focus on innovation, research, and promoting trailblazing individuals. The firm's top holdings include major technology and healthcare companies such as Apple Inc (AAPL, Financial), Amazon.com Inc (AMZN, Financial), and Microsoft Corp (MSFT, Financial), with a total equity of $1,640.7 trillion.
Knight-Swift Transportation Holdings Inc: A Leader in U.S. Trucking
Knight-Swift Transportation Holdings Inc is the largest full-truckload carrier in the United States, offering a diversified range of transportation services. The company generates 82% of its revenue from its asset-based trucking business, with segments including truckload, less-than-truckload, logistics, and intermodal services. As of the latest data, Knight-Swift has a market capitalization of $8.72 billion, with its stock priced at $53.87. The company is considered fairly valued with a GF Value of $57.46 and a GF Score of 92/100, indicating the highest outperformance potential.
Financial Metrics and Valuation
Knight-Swift's financial metrics reveal a Profitability Rank of 8/10 and a Growth Rank of 10/10, highlighting its strong performance potential. The company has experienced a 17.20% revenue growth over the past three years, although its earnings growth has declined by 14.30% during the same period. The stock's Operating Margin growth is -6.20%, and it has a Piotroski F-Score of 3, indicating some financial challenges.
Market and Industry Context
Operating within the transportation industry, Knight-Swift faces a competitive landscape. The company's Financial Strength is moderate, with a cash-to-debt ratio of 0.07 and an interest coverage of 1.53. Its Altman Z score of 1.85 suggests some financial risk, while its return on equity (ROE) and return on assets (ROA) are 1.66% and 0.92%, respectively.
Other Notable Gurus Holding KNX
Besides FMR LLC (Trades, Portfolio), other prominent investment firms hold significant positions in Knight-Swift. Brandes Investment is the largest guru shareholder, while First Eagle Investment (Trades, Portfolio) also maintains a stake in the company. These holdings reflect continued interest in Knight-Swift's potential within the transportation sector.
Conclusion: Strategic Implications for Value Investors
FMR LLC (Trades, Portfolio)'s decision to reduce its stake in Knight-Swift Transportation Holdings Inc may signal a strategic reallocation of resources within its portfolio. For value investors, this move highlights the importance of evaluating Knight-Swift's current valuation and growth potential. With a GF Value Rank of 9/10 and a Momentum Rank of 7/10, the stock presents a balanced opportunity for those considering its long-term prospects in the transportation industry.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
