After ‘new’ management took over at USA Truck, Inc. in late 2016, its stock value quadrupled, only to round trip back to where it started.
A very soft pricing environment and concerns about Amazon’s entry into the freight brokerage space are to blame.
Some of the insiders that purchased shares in the $8s back in August 2017 are buyers again, meriting a deeper dive.
A full investment analysis is provided in the paragraphs below.
Today, we look at a volatile logistics concern that saw some insider buying over the summer.
Company Overview:
USA Truck, Inc. (USAK) is a Van Buren, Arkansas based truckload carrier and logistics concern with a footprint in the eastern U.S. The company was founded as Crawford Produce in 1983, eventually going public in 1992. It controls, through ownership or lease, over 1,500 tractors and over 6,200 trailers, employing ~2,500, of which ~1,800 are drivers. USA Truck also has contracts with ~429 independent drivers. The company’s stock trades in the $9.50 area with a market cap of approximately $80 million.
Under a system in which no single question is submitted to the electorate for direct decision, an ardent minority for or against a particular measure may often count for more than an apathetic majority.”― Patrick Devlin, The Enforcement of Morals
Bret Jensen is the Founder of and authors articles for the Biotech Forum, Busted IPO Forum, and Insiders Forum
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Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.