Why Forward Air Stock Was Stuck in Reverse This Week
A week ago, express shipping company Forward Air (NASDAQ: FWRD) announced a transformative acquisition that largely left analysts scratching their heads. Investors are concerned, sending shares of Forward Air down more than 20% for the week, according to data provided by S&P Global Market Intelligence, despite the company's attempts to get Wall Street on board with its plans.
Forward Air had a tough week, but the cause of the stock's troubles dates back to Aug. 10. That's the day Forward announced plans to combined with private-equity-owned Omni Logistics to create a transportation powerhouse with $3.7 billion in annual sales.
Omni is an asset-light logistics and supply chain management company that facilitates domestic and international deliveries for customers. Forward, a trucking and logistics company focused on expedited services, said the deal would help funnel Omni customers to its trucks and create a one-stop shop for logistics and delivery services.
Source Fool.com
