Compass Capital Cuts Expeditors Stake 61.2% as Q3 13F Filings Land

Compass Capital Management Inc. cut its stake in Expeditors International of Washington (NASDAQ: EXPD) by 61.2% during the third quarter, selling 12,965 shares and leaving 8,211 shares worth $1,516,000, according to its latest 13F filing with the Securities and Exchange Commission.

The reduction sits inside a broader institutional reshuffle. BlackRock Inc. built a new second-quarter position worth $2,193,093,000. Caisse de depot et placement du Quebec bought in for $169,665,000, Legal & General Group Plc for $125,395,000, Bank of New York Mellon Corp for $108,099,000, and Deutsche Bank AG for roughly $102,595,000. Hedge funds and other institutional investors now hold 94.02% of the company's stock.

What did the latest quarter deliver?

The Seattle-based logistics group reported earnings on Tuesday, November 3rd, posting $2.65 in earnings per share against a consensus estimate of $2.22 — a $0.43 beat. A year earlier the company earned $1.64 per share. Revenue climbed 41.9% year over year. Net margin stood at 7.64%, and return on equity reached 36.16%. Analysts expect 5.39 EPS for the current fiscal year.

The numbers tell a simple story: the freight cycle turned, and Expeditors captured it.

Where does the stock trade now?

EXPD opened at $195.14 on Friday, down 0.3%. The company carries a market capitalization of $25.19 billion, a P/E ratio of 34.12, a PEG ratio of 5.00 and a beta of 1.08. Its 52-week range runs from $129.59 to $207.93. The fifty-day simple moving average sits at $192.73; the 200-day average at $168.70.

The company also declared a dividend of $0.81 per share, payable Tuesday, December 15th to stockholders of record on Tuesday, December 1st — also the ex-dividend date. The payout ratio stands at 20.56%.

How do analysts see the stock?

Research desks moved targets after the print, though not in one direction.

• BNP Paribas Exane initiated coverage on September 30th with a "neutral" rating and a $180.00 target.
• Truist Financial raised its target from $175.00 to $200.00 on November 4th, keeping a "hold."
• Barclays lifted its target from $165.00 to $175.00 the same day, retaining an "underweight."
• Bank of America moved its objective from $181.00 to $189.00 on July 21st with a "buy."
• JPMorgan Chase & Co. raised its target from $214.00 to $220.00 on November 4th, rating the stock "neutral."

Across the coverage universe, two analysts rate the stock Strong Buy, two Buy, eight Hold and three Sell. MarketBeat data put the average rating at "Hold" with a consensus price target of $181.27 — roughly 7% below the last open.

For finance chiefs watching transport costs, the takeaways are plain. Institutions still own nearly all of the register. Earnings beat sharply on a surging top line. And the analyst consensus says the rally has already priced in the recovery.

Founded in Seattle in 1979, Expeditors arranges air and ocean freight forwarding, customs brokerage, cargo insurance, warehousing and distribution, and order and supply chain management through a global network. It coordinates with carriers rather than operating trucks, ships or planes itself.