Shares of Hub Group plummeted 23% in premarket trading Friday following the disclosure of an accounting error. The issue, which understated purchased transportation costs, led to downgrades from Stifel and Baird. The error has delayed the release of the company's full fourth-quarter results, injecting uncertainty into earnings projections and margins.

Stifel downgraded the stock to Sell, slashing its price target to $27. Baird also cut its rating to Neutral. The firms cited concerns about the financial restatements and the need for clarity after the year-end audit is complete. The company anticipates restating its 2025 results and has stated that the issue relates to the timing of costs, not actual payments.

The freight and logistics sector is highly sensitive to accurate financial reporting, making this error particularly damaging. Hub Group's intermodal volume increased 1% in Q4, but the accounting problem overshadows this positive. Investors will closely watch the restatement's impact and the company's revised outlook for 2026, which is expected to be between $3.65 and $3.95 billion in revenue.