Dallas, Texas 10/02/2013 (Financialstrend) – Swift Transportation Co (NYSE:SWFT), the transport and truck loading company stock have gained appreciably in the previous week. The stock has advanced by 6.27% over the past month. The share price had settled at $18.44 as of close of business on October 1, compared to its 52-week high valuation of $20.76. At current valuations, the stock is keeping well ahead of its 50-day, 200-day moving averages, respectively.
Acquisitions lead to growth
While it has had a few fumbles in the past 6-months, the acquisition of Central Refrigerated Transportation in early August this year has proved to be a turning point of sorts for SWFT.
Swift Transportation Co (NYSE:SWFT)’s core capability is in trucking and transportation of goods for discount and retail chains. It specializes in moving merchandize as well as consumables like perishable/non-perishable food and beverage. Central Refrigerated Transportation was one of the Top-5 freight transport service providers with controlled temperature facilities in its trucks. The acquisition has helped SWFT move to become the second-largest temperature-controlled truckload provider in the US.
The deal was valued at $225 million. $189 million was paid in the form of equity. As part of the deal, Swift inherited $36 million debt. SWFT continues to service companies such as Kraft and Walmart and is now a $4 billion transport solutions provider according to Richard Stocking, President and COO of SWFT.
Speaking at the CitiGlobal Industrials Conference in Sept, Stocking said that, “Swift is much focused, even hyper-focused on growth, profitable revenue growth, asset utilization because of the transformation over the last four or five years.”
Swift Transportation Co (NYSE:SWFT)’s terminal network, along with the largest fleet for truck equipment has helped the company retain shippers as well as drivers. Trucking industry analysts suggest investors in this sector hold SWFT for long term and even buy as at its current prices, the stock is placed attractively for better growth in the next few months.