Landstar System, Inc. (NASDAQ:LSTR) Receives Consensus Rating of "Hold" from Analysts

Key Points

• Analysts are cautious on Landstar System: The stock has a consensus rating of “Hold” from 14 analysts, with 11 hold ratings, 2 buys, and 1 sell. The average 12-month price target is about $189.09.
• Insider selling has been notable: Director Diana M. Murphy and CFO James P. Todd both sold shares recently, reducing their ownership stakes. Insider ownership is very low at just 0.74% of the stock.
• The company continues to show solid operating results: Landstar beat quarterly earnings and revenue estimates, and its board authorized a share buyback plan. The company also pays a quarterly dividend of $0.40 per share, equal to a 0.8% yield.

Landstar System, Inc. (NASDAQ:LSTR - Get Free Report) has received an average recommendation of "Hold" from the fourteen analysts that are covering the stock, Marketbeat.com reports. One equities research analyst has rated the stock with a sell rating, eleven have issued a hold rating and two have assigned a buy rating to the company. The average 12 month target price among brokerages that have covered the stock in the last year is $189.0909.

A number of analysts have recently weighed in on LSTR shares. Robert W. Baird boosted their target price on shares of Landstar System from $195.00 to $225.00 and gave the stock an "outperform" rating in a report on Wednesday, June 17th. Morgan Stanley reaffirmed an "underweight" rating and issued a $145.00 price target on shares of Landstar System in a report on Monday. Stifel Nicolaus lifted their price target on Landstar System from $147.00 to $175.00 and gave the stock a "hold" rating in a research report on Wednesday, April 29th. Wells Fargo & Company boosted their price objective on Landstar System from $200.00 to $240.00 and gave the stock an "overweight" rating in a research note on Friday, June 5th. Finally, Truist Financial upped their price objective on Landstar System from $145.00 to $190.00 and gave the company a "hold" rating in a research report on Wednesday, April 29th.

Insiders Place Their Bets

In other Landstar System news, Director Diana M. Murphy sold 11,246 shares of the business's stock in a transaction on Friday, June 5th. The shares were sold at an average price of $221.28, for a total transaction of $2,488,514.88. Following the transaction, the director owned 18,853 shares in the company, valued at $4,171,791.84. The trade was a 37.36% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 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 transaction of $261,804.00. Following the completion of the sale, the chief financial officer directly owned 15,122 shares in the company, valued at approximately $3,299,166.74. This represents a 7.35% decrease in their position. The SEC filing for this sale provides additional information. 0.74% of the stock is owned by company insiders.

Hedge Funds Weigh In On Landstar System

A number of large investors have recently made changes to their positions in the company. Integrated Wealth Concepts LLC lifted its stake in Landstar System by 9.8% in the first quarter. Integrated Wealth Concepts LLC now owns 3,767 shares of the transportation company's stock worth $566,000 after purchasing an additional 336 shares during the last quarter. Goldman Sachs Group Inc. grew its stake in shares of Landstar System by 57.1% during the first quarter. Goldman Sachs Group Inc. now owns 138,009 shares of the transportation company's stock valued at $20,729,000 after buying an additional 50,142 shares during the last quarter. Empowered Funds LLC grew its stake in shares of Landstar System by 38.3% during the first quarter. Empowered Funds LLC now owns 4,687 shares of the transportation company's stock valued at $704,000 after buying an additional 1,298 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of Landstar System by 13.3% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 142,341 shares of the transportation company's stock worth $21,380,000 after buying an additional 16,698 shares during the period. Finally, Geneos Wealth Management Inc. raised its holdings in shares of Landstar System by 132.7% in the first quarter. Geneos Wealth Management Inc. now owns 249 shares of the transportation company's stock worth $37,000 after buying an additional 142 shares during the period. 97.95% of the stock is owned by hedge funds and other institutional investors.

Landstar System Stock Performance

NASDAQ:LSTR opened at $203.71 on Thursday. The company has a market cap of $6.91 billion, a price-to-earnings ratio of 56.27 and a beta of 0.89. Landstar System has a 1 year low of $119.32 and a 1 year high of $228.46. The stock's 50 day simple moving average is $200.89 and its two-hundred day simple moving average is $171.36. The company has a debt-to-equity ratio of 0.05, a current ratio of 1.88 and a quick ratio of 1.88.

Landstar System (NASDAQ:LSTR - Get Free Report) last posted its earnings results on Tuesday, April 28th. The transportation company reported $1.16 earnings per share for the quarter, beating analysts' consensus estimates of $1.11 by $0.05. The firm had revenue of $1.17 billion during the quarter, compared to analyst estimates of $1.16 billion. Landstar System had a net margin of 2.62% and a return on equity of 19.49%. Landstar System's revenue for the quarter was up 1.6% compared to the same quarter last year. During the same period last year, the firm posted $0.95 earnings per share. As a group, equities analysts anticipate that Landstar System will post 5.66 earnings per share for the current fiscal year.

Landstar System announced that its board has authorized a stock buyback plan on Tuesday, April 28th that authorizes the company to buyback 1,115,195,000,000 outstanding shares. This buyback authorization authorizes the transportation company to reacquire up to 3.3% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's board believes its stock is undervalued.

Landstar System Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 9th. Stockholders of record on Tuesday, May 19th were given a dividend of $0.40 per share. The ex-dividend date of this dividend was Tuesday, May 19th. This represents a $1.60 annualized dividend and a dividend yield of 0.8%. Landstar System's payout ratio is currently 44.20%.

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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