Shares of Forward Air Corp. (FWRD) experienced a significant boost in morning trading on Tuesday, following a statement made by activist investor Ancora Alternatives LLC. Ancora, which is currently one of the top shareholders of Forward Air, believes that the value of the less-than-truckload and freight services company could nearly double if shareholders take decisive action.

According to Ancora, if shareholders vote against the cash-and-stock deal to acquire Omni Logistics LLC, which was announced on August 10th, and subsequently vote for a replacement of the board of directors and management team, the stock has the potential to trade at over $100 within the next six months. Further, Ancora predicts that these actions could lead to an intermediate-term increase in stock value, bringing it to a range of $140 to $145, representing a substantial 80% to 86% rise above current levels.

The stock had previously suffered a significant decline of 42.4% due to a six-day losing streak that coincided with the announcement of the Omni deal. The downward trend prompted Stifel to downgrade Forward's stock from a buy rating to hold, citing concerns about the deal price, substantial equity dilution, and sizable execution risks.

Year to date, Forward's stock has fallen by 25.7%, while the Dow Jones Transportation Average has climbed 13.4% and the Dow Jones Industrial Average has seen a modest increase of 2.8%.

Leave Comment