Top 20 Falling Stocks with Unusual Volume

16. Covenant Logistics Group, Inc. (NYSE:CVLG)

Covenant Logistics Group, Inc. operates as a logistics and transportation services provider. The firm operates in Managed Freight, Expedited, Warehousing, and Dedicated segments. It serves traditional truckload customers and transportation companies. The stock is down 5.97% in a week on a relative volume of 2.03.

The company’s stock has had a disappointing 6 months after registering 5 years of healthy but volatile stock performance. Now the management needs to prove itself again, something investors aren’t willing to bet on, hence the stock falling on healthy volumes.

CVLG has been unable to significantly improve its EPS over the last 4 quarters. The YoY growth has been negative during this time, hence the pessimism.  While the share price chart over the past 5 years looks fine, the free cash flow margins paint an opposite picture, and that is what investors want to see changing.

From a peak of nearly 30% in 2021 to negative FCF margins late last year, the management has failed to deliver the cash flow investors expect. The last two quarters have shown an uptick, and the margins are back into positive territory again. However, it is quite likely investors want to see these margins reach historic levels again before they consider buying the stock.