Roadrunner Transportation Systems Inc. (NYSE: RRTS), a company that provides asset-right transportation and asset-light logistics services, on Wednesday delivered positive trading to the delight of investors. RRTS started the day’s trading at $3.52 and at one point rose to a high of $4.00. The open proved to be the lowest level the stock would trade at and by the end of trading on Wednesday the stock had risen so strong that it closed up nearly 10% at 9.94%.
The strong close meant that RRTS added $0.35 to valuation off volume of 458,395 shares. The strong volume trading was a stark contrast to the average volume for the stock that has prevailed over the trailing 30 days. The average volume for that period is 174,691 shares so the more than 100% increase in volume was one indication of the amount of interest being generated by the stock.
The strong interest comes nearly one month after RRTS announced a raft of executive changes to its operations. In a January 31 release, the company announced that it had appointed a new independent Chairman of the Board as well as hiring new financial leaders at corporate headquarters. The company said also in the release that it was committed to building world-class finance, internal audit and IT teams in order to positively influence its operations.
The rally on Wednesday, albeit occurring nearly a month later, falls in line with the consensus estimate among analysts. The one-year target for RRTS is $6.00, a figure which still doesn’t reach the levels of high trading experienced by RRTS over the last 12 months. This can be seen from the company’s 12-month high which is currently set at $9.75.
The one-year projection of RRTS still falls short of numbers it started doing at the start of 2018. The stock continued much of its strong trading at the end of December 2017 when it reached a high of $8.10 on December 21. On Jan 2, 2018 RRTS opened at $7.79 before rallying to a high of $8.09. Since then the stock has traded well above the $6 figure, reaching a high of $8.31 on January 12 on volume of 64,100.
For most of January RRTS traded strong, rarely dropping below $7. It wasn’t until recently that the stock appears to be experiencing head wind. As a matter of fact, RRTS actually traded steadily over $4 for the majority of the month of February. The trading on Wednesday therefore represents a push towards stronger levels previously held by the stock. There was no aftermarket trading for the stock on Wednesday.