In a recent move, Forward Air (NASDAQ:FWRD) Corporation (NASDAQ:FWRD) announced the appointment of Jerome Lorrain to its Board of Directors, expanding the board's size to 13 members. The announcement was made following a Form 8-K filing with the Securities and Exchange Commission.
Effective immediately, Lorrain will serve on the board until the next annual meeting of shareholders, where all directors will stand for re-election. His compensation aligns with that of other non-employee directors outlined in Forward Air's 2024 proxy statement.
Jerome Lorrain brings over three decades of logistics and transportation industry experience to Forward Air. His past roles include Chief Operating Officer of CEVA Logistics and leadership positions with Log-Hub, FluentCargo, SeaFrigo, Arrive Logistics, and Pilot Freight Services. Lorrain holds advanced degrees in Logistics and Transportation.
Concurrently, Craig Carlock, a long-serving director, has resigned effective October 15, 2024. The board will reduce to 12 members following his departure. Carlock's contributions as chairman of the Compensation Committee will be succeeded by Michael B. Hodge.
The company has yet to determine the specific committees Lorrain will join. Further details will be disclosed in an amendment to the current report.
In other recent news, Forward Air has been the focus of significant attention due to its financial outlook and strategic moves. The company's management has been striving for profitability and cost savings, with Baird increasing its price target for Forward Air to $32.00, maintaining a Neutral rating. The firm projects Forward Air's consolidated EBITDA to reach $310 million to $325 million by 2024. The company is also on track to realize additional cost savings related to Omni, with $14.6 million already achieved in the second quarter of 2024.
Furthermore, Forward Air has been under the scrutiny of investment firm Ancora Holdings Group, which has urged a strategic review and potential sale of the company. Ancora's call is backed by holders of approximately 22% of Forward Air's shares. Amid these developments, the company reported a 52% rise in Q1 revenue to $542 million, primarily due to the Omni segment's performance, but also saw a 51% drop in adjusted EBITDA to $29 million.
Analyst firms have been closely monitoring these developments. Baird raised the price target for Forward Air shares to $17.00, recognizing the company's efforts to mitigate debt and enhance profitability. Meanwhile, Stifel maintained a Hold rating and a $23.00 price target, welcoming the appointment of Jamie Pierson as interim Chief Financial Officer. Wolfe Research upgraded Forward Air's stock rating from Underperform to Peer Perform, holding steady on its financial forecasts.
InvestingPro Insights
As Forward Air Corporation (NASDAQ:FWRD) reshapes its board, recent financial data from InvestingPro sheds light on the company's current position. Despite a challenging year with a year-to-date price total return of -43.58%, FWRD has shown resilience in the short term, boasting an impressive 82.37% price total return over the past three months.
InvestingPro Tips highlight that Forward Air has maintained dividend payments for 19 consecutive years, demonstrating a commitment to shareholder returns even in turbulent times. This could be seen as a positive sign for investors, especially considering the recent board changes and the company's efforts to strengthen its governance.
However, it's worth noting that the company operates with a significant debt burden, which may impact its financial flexibility as it navigates the freight and cargo transportation sector. For a more comprehensive analysis, InvestingPro offers additional tips and insights that could be valuable for investors considering FWRD's future prospects.
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