Forward Air is seemingly going back a step or two. The expedited trucking company has to change some of its policies, apparently. This is according to filings made in accordance with the U.S. Securities and Exchange Commission.
To begin with, a group of investors plans to reinvent the company. Likely this is an omen of good things to come
Forward Air gets help from Ancora Advisors
Ancora Advisors have taken on an active role when investing in Forward Air. In addition, former Forward founder Scott Niswonger and former CFO Andy Clarke are involved. They have both been investing time into growing Forward Air.
Through a variety of measures, they will “enhance shareholder value.”
By enhancing the value, this type of talk also indicates changes being made to the management team and board. In addition to the capital allocation strategy.
Furthermore, documents as such are considered potential divestiture of “non-core assets.” Ancora Advisors is getting involved with Forward Air. To help make the company develop its assets and give more value to the trucking industry.
Ancora has been Acquiring Shares
Moreover, the investment group acquires shares. This is according to filings in the Greeneville, Tennessee-based company at the end of October. Now, they hold a 5.3% stake in Forward’s 27.5 million shares. Therefore, this represents more than $2 billion in market capitalization. The acquired shares will increase the company. Because the shareholders will have more satisfaction and confidence in the company, it’s a good business. For all parties involved. It’s a boon to business when all needs are met in the company.
Forward Air In Discussions
Ancora Advisors work with Forward’s board and management team. All will continue to engage in discussion to “create shareholder value,” according to the documents. In addition, the group is talking with other shareholders and third parties.
It’s always a good thing to keep the discussions going and have an open dialogue with all parties involved. This is a positive thing and can only further help the company with its goals going forward.
Open Communications with Shareholders and Prospective Investors
Therefore, Forward Air regularly engages in open communications. This occurs with shareholders and prospective investors.
However, the members of the company’s board and management team have held discussions with Ancora. They intend to continue engaging in a constructive manner “for the benefit of all shareholders.”
Moreover, Chairman / CEO Fred DiSanto runs a predominantly wealthy firm. As a fund manager, he has $7.8 billion in assets.
Therefore, the “Small-cap activist” by the company website is part of its products and strategies.
Forward capably beat the analysts’ forecasts during the third quarter of 2020. They record earnings per share of 61 cents from continuing operations versus a consensus of 40 cents per share. Moreover, the net income fell 20% on a year-over-year comparison.
The company’s operating ratio has dropped 230 basis points to 91.7%. Hopefully, the company can rebound and do better going forward. Every company has ups and downs. This part of a cycle in business.