Werner Enterprises Announces New Stock Repurchase Authorization and Quarterly Dividend

Rhea-AI Summary

Werner Enterprises (Nasdaq: WERN), a leading transportation and logistics company, announced significant actions by its Board of Directors on May 14, 2024. The Board approved a new stock repurchase program, allowing the company to buy back up to 5 million shares of its common stock. This new program replaces the previous authorization, which had 1.6 million shares remaining. The program will be active until the Board decides to withdraw it.

Additionally, the Board declared a regular quarterly cash dividend of $0.14 per common share, payable on July 17, 2024, to shareholders recorded by July 1, 2024. Werner Enterprises has consistently paid quarterly dividends since July 1987.

Positive

• New stock repurchase program authorized for up to 5 million shares.
• Quarterly cash dividend of $0.14 per share declared.
• Consistent dividend payments since July 1987 show financial stability.

Negative

• Previous stock repurchase program had 1.6 million shares left unutilized.

Insights

Financial Analyst

Werner Enterprises' new stock repurchase program and quarterly dividend announcement are significant developments for investors. The authorization to repurchase up to 5 million shares reflects the company's confidence in its financial health and long-term prospects. By reducing the number of outstanding shares, the company can potentially increase earnings per share (EPS) and improve shareholder value.

The fact that the board terminated the previous repurchase program which had 1.6 million shares remaining indicates a more aggressive approach to return capital to shareholders. Such repurchase programs are often viewed positively by the market as they can signal management's belief that the stock is undervalued.

The regular quarterly dividend of $0.14 per share, consistent with the company's long-standing history of paying dividends since 1987, demonstrates financial stability and commitment to returning value to shareholders. This consistent dividend payout can attract income-focused investors looking for reliable returns.

Retail investors should note that while stock repurchases can enhance EPS and potentially raise stock prices, the actual impact depends on broader market conditions, the company's future performance and how these actions are financed.

Market Research Analyst

The stock repurchase program and the quarterly dividend announcement by Werner Enterprises are strategic moves reflecting strong market positioning and confidence in their operational performance. The authorization to repurchase up to 5 million shares helps manage dilution and often results in a positive market perception of the company's valuation.

The continuation of the $0.14 quarterly dividend underscores the company's ongoing profitability and stable cash flow. From a market research perspective, these actions can make Werner Enterprises' stock more attractive to a broader range of investors, particularly those looking for both growth and income stability. The historical context of uninterrupted dividends since 1987 adds to the company's credibility and attractiveness in the eyes of cautious investors.

For retail investors, it's essential to consider this dual strategy's potential to drive stock price appreciation in the short-term while providing reliable income through dividends in the long-term. The broader economic factors and industry trends should also be considered when evaluating the long-term benefits of these actions.

OMAHA, Neb.--(BUSINESS WIRE)-- Werner Enterprises, Inc. (Nasdaq: WERN), one of the nation’s largest transportation and logistics companies (the “Company”), is pleased to announce the following actions of its Board of Directors (the “Board”) on May 14, 2024:

Stock Repurchase Program

The Board approved a new stock repurchase program under which the Company is authorized to repurchase up to 5 million shares of its common stock. Upon approval of the new program, the Board withdrew the previous stock repurchase authorization, which had approximately 1.6 million shares remaining available for repurchase. The Company may repurchase stock from time to time depending on market, economic and other factors. The new authorization will continue until the Board withdraws it.

Quarterly Dividend

The Board declared a regular quarterly cash dividend of $0.14 (fourteen cents) per common share. This dividend will be paid on July 17, 2024 to stockholders of record at the close of business on July 1, 2024. The Company has paid a quarterly cash dividend to its stockholders every quarter since July 1987.

About Werner Enterprises

Werner Enterprises, Inc. (Nasdaq: WERN) delivers superior truckload transportation and logistics services to customers across the United States, Mexico and Canada. With 2023 revenues of $3.3 billion, an industry-leading modern truck and trailer fleet, nearly 14,000 talented associates and our innovative Werner EDGE^® technology, we are an essential solutions provider for customers who value the integrity of their supply chain and require safe and exceptional on-time service. Werner^® provides Dedicated and One-Way Truckload services as well as Logistics services that include truckload brokerage, freight management, intermodal and final mile. As an industry leader, Werner is deeply committed to promoting sustainability and supporting diversity, equity and inclusion.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240515494951/en/

Christopher D. Wikoff

Executive Vice President, Treasurer and Chief Financial Officer

(402) 894-3700

Source: Werner Enterprises, Inc.

FAQ

What recent stock repurchase program did Werner Enterprises announce?

On May 14, 2024, Werner Enterprises announced a new stock repurchase program authorized to buy back up to 5 million shares of its common stock.

What is the value of the quarterly dividend declared by Werner Enterprises?

Werner Enterprises declared a quarterly cash dividend of $0.14 per common share.

When will Werner Enterprises pay the next quarterly dividend?

The next quarterly dividend will be paid on July 17, 2024, to shareholders of record as of July 1, 2024.

How long has Werner Enterprises been paying quarterly dividends?

Werner Enterprises has been paying quarterly dividends consistently since July 1987.

What happened to Werner Enterprises' previous stock repurchase program?

The previous stock repurchase program was withdrawn, with approximately 1.6 million shares remaining unutilized.