Landstar System (NASDAQ:LSTR) Stock Price Target Lowered at Robert W. Baird

Key Points

• Robert W. Baird lowered Landstar System’s price target from $215 to $195 while maintaining an “outperform” rating, implying approximately 15.5% upside from the prior close.
• Analyst sentiment is mixed, with four Buy ratings, twelve Holds, and two Sells; the consensus rating is “Hold” with an average price target of $189.71.
• Landstar’s quarterly revenue rose 25.4% year over year to $1.51 billion, but EPS of $1.42 missed one analyst consensus estimate of $1.67. Elevated insurance and claims costs, along with expected margin compression, remain concerns.

Landstar System (NASDAQ:LSTR - Get Free Report) had its price objective lowered by stock analysts at Robert W. Baird from $215.00 to $195.00 in a research note issued to investors on Wednesday, Benzinga reports. The brokerage presently has an "outperform" rating on the transportation company's stock. Robert W. Baird's target price indicates a potential upside of 15.54% from the company's previous close.

Several other research firms have also recently issued reports on LSTR. The Goldman Sachs Group increased their price objective on Landstar System from $147.00 to $168.00 and gave the stock a "sell" rating in a research report on Thursday, July 16th. Stephens raised shares of Landstar System to a "strong-buy" rating in a research note on Wednesday, July 8th. Raymond James Financial reaffirmed a "market perform" rating on shares of Landstar System in a research note on Wednesday. Wall Street Zen downgraded shares of Landstar System from a "buy" rating to a "hold" rating in a report on Saturday, August 29th. Finally, Susquehanna raised their price objective on shares of Landstar System from $195.00 to $230.00 and gave the company a "neutral" rating in a research note on Tuesday, July 14th. Four investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $189.71.

Landstar System Trading Up 2.2%

Shares of LSTR stock opened at $168.78 on Wednesday. The company has a market cap of $5.73 billion, a price-to-earnings ratio of 43.73 and a beta of 0.90. The stock has a 50 day simple moving average of $172.65 and a 200-day simple moving average of $176.75. Landstar System has a 12-month low of $121.11 and a 12-month high of $228.46.

Landstar System (NASDAQ:LSTR - Get Free Report) last posted its quarterly earnings results on Tuesday, October 27th. The transportation company reported $1.42 EPS for the quarter, missing the consensus estimate of $1.67 by ($0.25). The firm had revenue of $1.51 billion during the quarter, compared to analyst estimates of $1.50 billion. During the same period in the prior year, the company earned $1.22 earnings per share. Landstar System's revenue for the quarter was up 25.4% on a year-over-year basis. On average, equities analysts forecast that Landstar System will post 5.87 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. Park Avenue Securities LLC raised its stake in shares of Landstar System by 31.4% during the 3rd quarter. Park Avenue Securities LLC now owns 1,607 shares of the transportation company's stock worth $271,000 after buying an additional 384 shares during the last quarter. Verdence Capital Advisors LLC grew its stake in Landstar System by 3.3% in the 3rd quarter. Verdence Capital Advisors LLC now owns 5,957 shares of the transportation company's stock valued at $1,005,000 after acquiring an additional 188 shares during the last quarter. Peterson Wealth Services grew its stake in Landstar System by 40.2% in the 3rd quarter. Peterson Wealth Services now owns 1,809 shares of the transportation company's stock valued at $305,000 after acquiring an additional 519 shares during the last quarter. Compass Ion Advisors LLC grew its stake in Landstar System by 9.2% in the 3rd quarter. Compass Ion Advisors LLC now owns 4,158 shares of the transportation company's stock valued at $702,000 after acquiring an additional 350 shares during the last quarter. Finally, Citizens Financial Group Inc. RI increased its holdings in Landstar System by 15.2% during the 3rd quarter. Citizens Financial Group Inc. RI now owns 3,301 shares of the transportation company's stock valued at $557,000 after acquiring an additional 435 shares in the last quarter. Hedge funds and other institutional investors own 97.95% of the company's stock.

Landstar System News Summary

Here are the key news stories impacting Landstar System this week:

• Positive Sentiment: Revenue and operating metrics improved significantly. Landstar reported third-quarter revenue of $1.512 billion, up 25% year over year and slightly above the roughly $1.50 billion analyst estimate. Variable contribution increased 25%, while gross profit rose 14%. Landstar System Reports Third Quarter Revenue and Earnings
• Positive Sentiment: Earnings benefited from an easier year-ago comparison. Reported EPS was $1.42, compared with $0.56 in the prior-year quarter, which included a $30.1 million non-cash impairment charge. Some data services reported adjusted EPS of $1.89, above their consensus estimate, although the company’s reported figure was below the $1.67 estimate cited by other analysts. Landstar System Earnings Results
• Positive Sentiment: Landstar maintained its cash-return program. The company declared a quarterly dividend of $0.44 per share, or $1.76 annualized, with a stated yield of approximately 1%. The dividend is payable December 8 to shareholders of record November 17.
• Neutral Sentiment: Analyst conviction remains limited. Raymond James reiterated a Market Perform rating, suggesting the firm sees the stock as fairly valued following the earnings release. Raymond James Market Perform Rating
• Negative Sentiment: Profitability and the outlook remain concerns. Reported EPS missed some Wall Street estimates, while elevated insurance and claims costs pressured third-quarter results. Landstar expects fourth-quarter truck revenue per load to rise only about 1% sequentially, accompanied by 20–30 basis points of variable contribution margin compression. Landstar Fourth-Quarter Seasonal Outlook

Landstar System Company Profile

Landstar System, Inc NASDAQ: LSTR is an asset-light transportation and logistics company headquartered in Jacksonville, Florida. Through a network of independent owner-operators, agents and third-party capacity providers, the company arranges the movement of freight for commercial and industrial customers.

Landstar's services include truckload transportation, specialized and heavy-haul freight, expedited and time-critical shipping, less-than-truckload transportation, intermodal services and logistics management.

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