Stock To Watch: Roadrunner Transportation Shares Up 40%

(RTTNews) - Shares of asset-right transportation and asset-light logistics service provider Roadrunner Transportation Systems, Inc. (RRTS) soared more than 40% on Wednesday following its decision to sell the prime distribution services business to C.H. Robinson Worldwide, Inc. (CHRW) for $225 million in cash.

The stock, which had been trading in triple digits until the beginning of 2018, dwindled since then. Wednesday, it closed the trading at $9.06. RRTS has been highly volatile, trading in a range of $6.02- $14.75 during the past one year.

The company plans to pay off all of its asset-based loans and term loan credit facilities with the proceeds from the sell-off. In an attempt to focus more on its core business, Roadrunner had sold its Flatbed business unit in December last year.

When the company reported its third-quarter results in November, revenues decreased year-on-year to $459.1 million from $536.6 million. Loss per share narrowed to $2.60 from $26.99 on higher share count.

Fourth quarter earnings results are expected to be reported on March 10.