Landstar System, Inc. (NASDAQ:LSTR) Given Average Recommendation of "Hold" by Brokerages

Key Points

• Analysts maintain a “Hold” consensus on Landstar System, with 11 hold, two sell, two buy and one strong-buy rating among 16 brokerages. The average 12-month price target is approximately $194.62.
• Landstar’s latest quarterly revenue rose 18.2% year over year to $1.43 billion, exceeding estimates, while EPS of $1.44 fell short of the $1.49 consensus forecast.
• The company increased its quarterly dividend to $0.44 per share and authorized a share-repurchase program covering up to 3.3% of outstanding stock; institutional investors own approximately 97.95% of shares.

Shares of Landstar System, Inc. (NASDAQ:LSTR - Get Free Report) have earned an average rating of "Hold" from the sixteen brokerages that are covering the company, MarketBeat reports. Two investment analysts have rated the stock with a sell rating, eleven have assigned a hold rating, two have issued a buy rating and one has issued a strong buy rating on the company. The average 12-month price target among brokers that have covered the stock in the last year is $194.6154.

LSTR has been the subject of several recent research reports. Wells Fargo & Company upped their price target on shares of Landstar System from $200.00 to $240.00 and gave the stock an "overweight" rating in a research report on Friday, June 5th. Janney Montgomery Scott set a $182.00 target price on shares of Landstar System in a research report on Wednesday. Stifel Nicolaus lifted their price target on Landstar System from $186.00 to $197.00 and gave the company a "hold" rating in a report on Wednesday. JPMorgan Chase & Co. boosted their price objective on Landstar System from $198.00 to $204.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 29th. Finally, Wall Street Zen upgraded Landstar System from a "hold" rating to a "buy" rating in a research report on Saturday, July 4th.

Landstar System Stock Performance

Shares of NASDAQ LSTR opened at $174.77 on Monday. The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 0.05. The firm's 50-day moving average price is $207.44 and its two-hundred day moving average price is $178.24. Landstar System has a 52-week low of $119.32 and a 52-week high of $228.46. The stock has a market capitalization of $5.93 billion, a P/E ratio of 45.28 and a beta of 0.90.

Landstar System (NASDAQ:LSTR - Get Free Report) last issued its quarterly earnings data on Tuesday, July 28th. The transportation company reported $1.44 EPS for the quarter, missing analysts' consensus estimates of $1.49 by ($0.05). Landstar System had a return on equity of 20.84% and a net margin of 2.64%.The company had revenue of $1.43 billion for the quarter, compared to the consensus estimate of $1.34 billion. During the same quarter in the previous year, the company earned $1.20 earnings per share. Landstar System's quarterly revenue was up 18.2% compared to the same quarter last year. As a group, sell-side analysts forecast that Landstar System will post 5.8 earnings per share for the current year.

Landstar System Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 9th. Investors of record on Tuesday, August 18th will be issued a $0.44 dividend. The ex-dividend date of this dividend is Tuesday, August 18th. This is an increase from Landstar System's previous quarterly dividend of $0.40. This represents a $1.76 annualized dividend and a yield of 1.0%. Landstar System's dividend payout ratio is currently 41.45%.

Landstar System declared that its Board of Directors has initiated a share buyback plan on Tuesday, April 28th that authorizes the company to repurchase 1,115,195,000,000 shares. This repurchase authorization authorizes the transportation company to reacquire up to 3.3% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's leadership believes its stock is undervalued.

Insider Activity

In other Landstar System news, CFO James P. Todd sold 1,200 shares of the business's stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $218.17, for a total transaction 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Diana M. Murphy sold 11,246 shares of the company's stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $221.28, for a total transaction of $2,488,514.88. Following the completion of the sale, the director directly owned 18,853 shares of the company's stock, valued at approximately $4,171,791.84. This represents a 37.36% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.74% of the stock is currently owned by company insiders.

Institutional Trading of Landstar System

A number of hedge funds and other institutional investors have recently modified their holdings of LSTR. Fulton Bank N.A. boosted its stake in Landstar System by 8.0% during the second quarter. Fulton Bank N.A. now owns 2,620 shares of the transportation company's stock valued at $542,000 after buying an additional 194 shares in the last quarter. Elevation Wealth Partners LLC lifted its holdings in Landstar System by 41.8% in the 2nd quarter. Elevation Wealth Partners LLC now owns 224 shares of the transportation company's stock valued at $46,000 after acquiring an additional 66 shares during the last quarter. Assenagon Asset Management S.A. acquired a new stake in Landstar System during the second quarter valued at approximately $6,064,000. GAMMA Investing LLC lifted its stake in Landstar System by 31.9% during the second quarter. GAMMA Investing LLC now owns 2,757 shares of the transportation company's stock valued at $570,000 after purchasing an additional 667 shares during the last quarter. Finally, Versant Capital Management Inc boosted its holdings in Landstar System by 130.5% during the second quarter. Versant Capital Management Inc now owns 839 shares of the transportation company's stock worth $174,000 after buying an additional 475 shares in the last quarter. Institutional investors own 97.95% of the company's stock.

Landstar System Company Profile

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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