Knight-Swift (KNX) Dives 1.40% to 14-Month Low on Mixed Earnings, Institutional Selling

Shares of Knight-Swift Transportation Holdings Inc. (KNX) fell to a 14-month low on Monday, closing down 1.40% for the fourth consecutive day with a cumulative decline of 7.24% over the past week. The stock hit an intraday low not seen since May 2025, with a 1.75% dip during trading hours, signaling persistent investor caution amid mixed fundamentals.

Recent institutional investor activity has contributed to the downward pressure. Multiple large holders, including Ontario Teachers Pension Plan Board and Nordea Investment Management AB, reduced their KNX stakes between August and September 2024, reflecting portfolio rebalancing or wariness about near-term challenges. However, Caisse de Dépot et Placement du Québec increased its position in August, suggesting some long-term confidence. Analyst ratings remain split, with firms like Raymond James and Stifel maintaining “Moderate Buy” or “Outperform” outlooks, while TD Cowen and Zacks Research cut price targets or earnings estimates, highlighting diverging expectations.

The company’s Q2 2025 earnings report revealed mixed results. The truckload segment saw a 45.8% year-over-year jump in adjusted EPS, driven by cost discipline and efficiency gains, while the LTL business posted 28.4% revenue growth despite integration costs from the DHE acquisition. However, the intermodal segment faced a 13.8% revenue decline due to West Coast import weakness and aggressive pricing competition. Knight-Swift also announced layoffs in late August and early September, citing broader market softness, raising concerns about demand sustainability.

Strategic moves, including a $50–$75 million cut in 2025 capital expenditures and asset optimization efforts, underscore management’s focus on margin stabilization. A $2.5 billion credit facility secured in July 2024 provided liquidity buffers, but analysts caution that near-term headwinds—including intermodal underperformance and LTL margin compression—remain risks. While the company’s disciplined cost controls and operational improvements position it to outperform peers in a recovering freight cycle, macroeconomic uncertainties and sector-wide capacity adjustments continue to weigh on investor sentiment.