ODFL stock is in an uptrend and received an analyst price target hike on January 4, 2022. Last month the company announced it was hiking shipping rates.
- 1 Old Dominion price target raised to $385 from $360 at Stephens
- 2 Old Dominion price target raised to $380 from $345 at Raymond James
- 3 Old Dominion Freight Line, Inc. Announces General Rate Increase
- 4 Old Dominion November FY21 LTL revenue per day increased 29.9% YoY
- 5 📺 Old Dominion Freight Line Hiring 800 Truck Drivers In The Next 3 Months | $73,000-$99,000 A Year 🤯
- 6 📈 ODFL Stock Technical Analysis
Old Dominion price target raised to $385 from $360 at Stephens
Stephens analyst Jack Atkins raised the firm’s price target on Old Dominion to $385 from $360 and keeps an Overweight rating on the shares, noting that less-than-truckload, or LTL, carriers he covers saw continued demand and pricing strength in Q4, as “was the case for much of 2021,” and that as he looks out to 2022, he expects “more of the same.” Shippers anticipate their LTL contract pricing to be up a “healthy” 5.5% this year, and underlying demand trends should continue to be very healthy, said Atkins, who believes the LTL group will contain “many of the most interesting multi-year investment stories” in his stock coverage.
Old Dominion price target raised to $380 from $345 at Raymond James
On December 30, 2021, Raymond James analyst Patrick Tyler Brown raised the firm’s price target on Old Dominion Freight Line to $380 from $345 and kept an Outperform rating on the shares. The truck market “remains extremely tight” heading into 2022 as supply additions “have been hard to come by,” Brown tells investors in a research note. The analyst believes the first half of 2022 “sets up decidedly more favorable” as carriers continue to benefit from double-digit contractual rate increases, a strong truck spot market, volume tailwinds from inventory replenishment demand, and still replacement-like Class 8 build rates. He continues to favor owning names “with most idiosyncratic growth/margin stories within trucking.” Brown adds, however, that rising production into the second half of 2022 “could add to capacity and thus somewhat wane on growth optics.”
Old Dominion Freight Line, Inc. Announces General Rate Increase
On December 16, 2021, Old Dominion Freight Line, Inc. (Nasdaq: ODFL) announced a general rate increase (GRI) of 4.9 percent applicable to rates established under the existing ODFL 559, 670, and 550 tariffs, effective January 3, 2022.
Todd A. Polen, Old Dominion’s Vice President – Pricing Services, commented, “At Old Dominion, we are committed to delivering our premium value proposition of on-time, claims-free service at a fair price. To satisfy our customers’ expectations and deliver on the promises we have made, we must continue to enhance our high-quality service network and systems. This GRI will affect our class tariffs and is intended to partially offset the rising costs of real estate, new equipment, technology investments, and competitive employee wage and benefit packages. Although the GRI will impact each customer differently based on specific shipment lanes and distance traveled, it is consistent with our long-term yield management philosophy. The overall impact of the increase is anticipated to be approximately 4.9 percent. The GRI also provides for a nominal increase in minimum charges concerning intrastate, interstate, and cross border lanes.”
Old Dominion November FY21 LTL revenue per day increased 29.9% YoY
On December 6, 2021, Old Dominion Freight Line reported less-than-truckload operating metrics for November 2021. Revenue per day increased 29.9% compared to November 2020 due to an 11.5% increase in LTL tons per day and an increase in LTL revenue per hundredweight. The change in LTL tons per day was attributable to a 15.2% increase in LTL shipments per day, partially offset by a 3.2% decrease in LTL weight per shipment. For the quarter-to-date period, LTL revenue per hundredweight and LTL revenue per hundredweight excluding fuel surcharges increased 16.6% and 9.4%, respectively, as compared to the same period last year. Greg C. Gantt, President and Chief Executive Officer of Old Dominion, commented, “Our revenue growth through November reflects our continued ability to win market share and the ongoing strength in the domestic economy. We believe the sequential change in revenue per day for the fourth quarter of 2021 will once again exceed our 10-year average for this metric. We also expect that strong customer demand will continue into next year, as shippers continue to value our superior service and available network capacity at a time when the industry’s capacity is generally limited. While we have the capacity to support additional volume growth, we remain committed to further investment in our business to support our expectations for increased market share in 2022 and beyond. We are confident that the continued execution of our long-term strategic plan can produce long-term gains in market share and shareholder value.”
📺 Old Dominion Freight Line Hiring 800 Truck Drivers In The Next 3 Months | $73,000-$99,000 A Year 🤯
📈 ODFL Stock Technical Analysis
The long-term trend is positive, and the short-term trend is neutral. The long-term trend gets the benefit of the doubt for now. ODFL is part of the Road & Rail industry. There are 45 other stocks in this industry. ODFL outperforms 84% of them. ODFL is currently trading in the upper part of its 52-week range. The S&P500 Index, however, is currently trading near a new high, so ODFL is lagging the market slightly.
There is a support zone ranging from 350.62 to 352.15. This zone is formed by combining multiple trend lines and important moving averages in the daily time frame. There is also a support zone ranging from 340.61 to 344.29. This zone is formed by multiple trend lines and important moving averages in multiple time frames.
There is a resistance zone ranging from 355.26 to 364.01. This zone is formed by combining multiple trend lines in multiple time frames.
ODFL has an excellent technical rating, but the quality of the setup is only medium at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when ODFL stock consolidates and is a good long entry.