BlackRock Inc. Makes New $698.68 Million Investment in Landstar System, Inc. $LSTR

Key Points

• BlackRock purchased 3.38 million Landstar System shares worth approximately $698.7 million, taking an estimated 9.95% stake. Institutional investors collectively own 97.95% of the company.
• Landstar reported quarterly revenue of $1.43 billion, up 18.2% year over year and above estimates, though earnings per share of $1.44 fell short of the $1.49 consensus forecast.
• The company raised its quarterly dividend to $0.44, or $1.76 annually, and authorized a share-repurchase program covering up to 3.3% of outstanding shares. Analysts maintain a consensus “Hold” rating with a $196 price target.

BlackRock Inc. purchased a new stake in Landstar System, Inc. (NASDAQ:LSTR - Free Report) in the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor purchased 3,378,380 shares of the transportation company's stock, valued at approximately $698,683,000. BlackRock Inc. owned approximately 9.95% of Landstar System as of its most recent SEC filing.

Other hedge funds also recently made changes to their positions in the company. Boston Partners increased its position in Landstar System by 24.1% during the third quarter. Boston Partners now owns 1,761,526 shares of the transportation company's stock worth $216,242,000 after buying an additional 341,808 shares during the period. First Trust Advisors LP grew its position in Landstar System by 19.1% in the 1st quarter. First Trust Advisors LP now owns 1,118,554 shares of the transportation company's stock valued at $179,315,000 after buying an additional 179,294 shares during the last quarter. AQR Capital Management LLC increased its stake in Landstar System by 185.5% in the 4th quarter. AQR Capital Management LLC now owns 987,087 shares of the transportation company's stock valued at $141,844,000 after buying an additional 641,319 shares during the period. Corient Private Wealth LLC raised its position in Landstar System by 99.5% during the 4th quarter. Corient Private Wealth LLC now owns 742,215 shares of the transportation company's stock worth $105,877,000 after buying an additional 370,253 shares during the last quarter. Finally, Jacobs Levy Equity Management Inc. raised its position in Landstar System by 19.8% during the 4th quarter. Jacobs Levy Equity Management Inc. now owns 706,446 shares of the transportation company's stock worth $101,516,000 after buying an additional 116,619 shares during the last quarter. Hedge funds and other institutional investors own 97.95% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on the stock. TD Cowen dropped their price target on shares of Landstar System from $182.00 to $178.00 and set a "hold" rating on the stock in a research note on Tuesday, July 28th. Robert W. Baird reduced their price objective on shares of Landstar System from $225.00 to $215.00 and set an "outperform" rating for the company in a research report on Wednesday, July 29th. Zacks Research raised Landstar System from a "hold" rating to a "strong-buy" rating in a report on Monday, August 3rd. Stephens upgraded Landstar System to a "strong-buy" rating in a research report on Wednesday, July 8th. Finally, The Goldman Sachs Group increased their target price on Landstar System from $147.00 to $168.00 and gave the stock a "sell" rating in a research note on Thursday, July 16th. Two equities research analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating, ten have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $196.00.

Landstar System Stock Performance

Shares of LSTR stock opened at $186.58 on Monday. The stock has a market cap of $6.33 billion, a P/E ratio of 48.34 and a beta of 0.90. The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 0.05. Landstar System, Inc. has a fifty-two week low of $119.32 and a fifty-two week high of $228.46. The business has a fifty day simple moving average of $198.40 and a 200-day simple moving average of $181.37.

Landstar System (NASDAQ:LSTR - Get Free Report) last released its quarterly earnings data on Tuesday, July 28th. The transportation company reported $1.44 EPS for the quarter, missing the consensus estimate of $1.49 by ($0.05). Landstar System had a return on equity of 20.84% and a net margin of 2.64%.The business had revenue of $1.43 billion during the quarter, compared to analysts' expectations of $1.34 billion. During the same quarter in the prior year, the firm earned $1.20 earnings per share. Landstar System's quarterly revenue was up 18.2% on a year-over-year basis. On average, analysts forecast that Landstar System, Inc. will post 5.84 earnings per share for the current fiscal year.

Landstar System Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 9th. Stockholders of record on Tuesday, August 18th will be issued a $0.44 dividend. This represents a $1.76 dividend on an annualized basis and a dividend yield of 0.9%. This is a positive change from Landstar System's previous quarterly dividend of $0.40. The ex-dividend date of this dividend is Tuesday, August 18th. Landstar System's payout ratio is presently 45.60%.

Landstar System declared that its board has authorized a share repurchase plan on Tuesday, April 28th that permits the company to repurchase 1,115,195,000,000 shares. This repurchase authorization permits the transportation company to reacquire up to 3.3% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling at Landstar System

In other news, Director Diana M. Murphy sold 11,246 shares of the company's stock in a transaction on Friday, June 5th. The stock was sold at an average price of $221.28, for a total value of $2,488,514.88. Following the sale, the director directly owned 18,853 shares in the company, valued at $4,171,791.84. This represents a 37.36% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO James P. Todd sold 1,200 shares of the stock in a transaction on Monday, June 15th. The shares were sold at an average price of $218.17, for a total value of $261,804.00. Following the sale, the chief financial officer directly owned 15,122 shares in the company, valued at approximately $3,299,166.74. The trade was a 7.35% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.74% of the stock is owned by corporate insiders.

About Landstar System

Landstar System, Inc provides integrated transportation management solutions through a network of independent agents and third-party capacity providers. The company specializes in truckload brokerage, intermodal, air and ocean freight, expedited and heavy-haul services, along with value-added offerings such as cargo insurance, customs brokerage and supply chain management. Landstar's proprietary technology platform enables real-time load matching, shipment tracking and data analytics to optimize fleet utilization and improve customer service.

Founded in 1968 and headquartered in Jacksonville, Florida, Landstar pioneered an asset-light brokerage model that has evolved into a global logistics operation.

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