Landstar System (NASDAQ:LSTR) Given New $215.00 Price Target at Robert W. Baird

Key Points

• Robert W. Baird lowered Landstar System’s price target to $215 from $225 while maintaining an “outperform” rating, implying 16.02% upside from the prior close. Analysts overall remain cautious, with a consensus “Hold” rating and $191.83 target price.
• Landstar’s second-quarter revenue rose 18.2% year over year to $1.43 billion, exceeding estimates, while EPS of $1.44 fell short of the broader $1.49 consensus. The company also raised its quarterly dividend by 10% to $0.44 per share.
• The stock opened at $185.32 and trades at a relatively high P/E ratio of 51.19; the company authorized repurchases of up to 3.3% of its shares, while two insiders recently sold stock.

Landstar System (NASDAQ:LSTR - Get Free Report) had its price target lowered by research analysts at Robert W. Baird from $225.00 to $215.00 in a report released on Wednesday,Benzinga reports. The brokerage currently has an "outperform" rating on the transportation company's stock. Robert W. Baird's price target indicates a potential upside of 16.02% from the company's previous close.

Several other equities research analysts have also commented on the company. Truist Financial upped their price objective on Landstar System from $190.00 to $205.00 and gave the stock a "hold" rating in a research note on Wednesday, July 15th. Wells Fargo & Company raised their price objective on shares of Landstar System from $200.00 to $240.00 and gave the company an "overweight" rating in a research report on Friday, June 5th. UBS Group raised their price target on Landstar System from $147.00 to $185.00 and gave the company a "neutral" rating in a report on Wednesday, April 29th. Susquehanna increased their target price on Landstar System from $195.00 to $230.00 and gave the stock a "neutral" rating in a research report on Tuesday, July 14th. Finally, TD Cowen cut their price objective on shares of Landstar System from $182.00 to $178.00 and set a "hold" rating for the company in a report on Tuesday. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, eleven have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $191.83.

Landstar System Stock Performance

LSTR stock opened at $185.32 on Wednesday. The company has a market cap of $6.29 billion, a P/E ratio of 51.19 and a beta of 0.89. 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 has a 1 year low of $119.32 and a 1 year high of $228.46. The stock's fifty day moving average price is $208.49 and its 200-day moving average price is $177.83.

Landstar System (NASDAQ:LSTR - Get Free Report) last released its quarterly earnings results on Tuesday, July 28th. The transportation company reported $1.44 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.49 by ($0.05). The firm had revenue of $1.43 billion for the quarter, compared to the consensus estimate of $1.34 billion. Landstar System had a net margin of 2.62% and a return on equity of 19.49%. The company's revenue for the quarter was up 18.2% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.20 earnings per share. On average, equities analysts forecast that Landstar System will post 5.73 earnings per share for the current year.

Landstar System declared that its board has approved a stock buyback program on Tuesday, April 28th that authorizes the company to repurchase 1,115,195,000,000 shares. This repurchase authorization authorizes the transportation company to buy up to 3.3% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company's management believes its stock is undervalued.

Insider Activity

In other news, CFO James P. Todd sold 1,200 shares of the stock in a transaction on Monday, June 15th. The stock was 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 owned 15,122 shares in the company, valued at approximately $3,299,166.74. This represents a 7.35% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Diana M. Murphy sold 11,246 shares of Landstar System stock in a transaction dated 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 of the company's stock, valued at $4,171,791.84. This trade represents a 37.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.74% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Landstar System

A number of large investors have recently made changes to their positions in the stock. Los Angeles Capital Management LLC acquired a new position in shares of Landstar System in the 4th quarter worth approximately $25,000. Global Retirement Partners LLC lifted its holdings in Landstar System by 320.0% during the 4th quarter. Global Retirement Partners LLC now owns 189 shares of the transportation company's stock worth $27,000 after buying an additional 144 shares during the last quarter. Quarry LP purchased a new stake in Landstar System during the third quarter worth approximately $25,000. Elevation Wealth Partners LLC lifted its position in shares of Landstar System by 41.8% during the 2nd quarter. Elevation Wealth Partners LLC now owns 224 shares of the transportation company's stock worth $46,000 after buying an additional 66 shares during the last quarter. Finally, Geneos Wealth Management Inc. increased its position in shares of Landstar System by 132.7% during the first quarter. Geneos Wealth Management Inc. now owns 249 shares of the transportation company's stock worth $37,000 after purchasing an additional 142 shares in the last quarter. 97.95% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Landstar System

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

• Positive Sentiment: Landstar reported second-quarter revenue of $1.432 billion, up 18.2% year over year and above the $1.34 billion analyst estimate. EPS increased to $1.44 from $1.20 a year earlier. Landstar System Reports Second Quarter Revenue and Earnings
• Positive Sentiment: The company increased its quarterly dividend by 10% to $0.44 per share from $0.40. The new payment is scheduled for September 9 for shareholders of record on August 18, supporting the shareholder-return story. Landstar System Posts Strong Q2 Results and Raises Dividend
• Neutral Sentiment: Reported EPS of $1.44 exceeded the Zacks consensus estimate of $1.42, but other published analyst consensus data placed expectations at $1.49. This discrepancy makes the earnings reaction more mixed. Landstar System Beats Q2 Earnings and Revenue Estimates
• Negative Sentiment: The $1.44 EPS result missed the broader consensus estimate of $1.49 by $0.05, which may be weighing on the shares even though revenue surpassed expectations. Landstar also trades at a forward-looking valuation that leaves limited room for earnings disappointment. Landstar System Second Quarter Earnings Report

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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