Heartland Express (HTLD): Palm Valley Capital Fund’s Top Q4 Contributor

Core Insights - Palm Valley Capital Fund's performance in Q4 2025 showed a 0.66% appreciation, underperforming the S&P SmallCap 600's 1.70% gain and the Morningstar Small Cap Total Return Index's 3.12% rise [1] - The Fund increased its allocation to Treasury bills from 74.1% to 76.3% during the quarter, while equity holdings rose by 1.12% [1] - Precious metals, particularly silver, significantly contributed to the Fund's equity performance [1] Company-Specific Insights - Heartland Express, Inc. (NASDAQ:HTLD) was highlighted as a top contributor to the Fund's performance in Q4 2025, with a one-month return of 6.26% despite a 52-week loss of 8.97% [2][3] - The company is experiencing stabilization in operating results amidst a severe freight recession, with signs of trucking rates bottoming out and beginning to rise [3] - Capacity reductions and stricter trucking regulations are expected to improve pricing and profitability for Heartland Express in 2026, with a 60% reduction in net debt over three years [3] - Heartland Express is not among the 30 Most Popular Stocks Among Hedge Funds, with 17 hedge fund portfolios holding its stock at the end of Q3 2025, an increase from 15 in the previous quarter [4]