Landstar System (NASDAQ:LSTR) Rating Increased to Outperform at Wolfe Research

Key Points

• Wolfe Research upgraded Landstar System to “outperform” from “peer perform” and set a $214 price target, implying 17.64% upside from the prior close.
• Despite the upgrade, analyst sentiment remains mixed: Landstar has a consensus “hold” rating and an average price target of $196, with ratings ranging from strong buy to sell.
• Landstar’s latest quarterly revenue rose 18.2% year over year to $1.43 billion, though earnings per share of $1.44 missed estimates by $0.05. The company also authorized repurchases of up to 3.3% of its outstanding shares.

Landstar System (NASDAQ:LSTR - Get Free Report) was upgraded by stock analysts at Wolfe Research from a "peer perform" rating to an "outperform" rating in a research report issued on Tuesday, Marketbeat.com reports. The firm presently has a $214.00 price target on the transportation company's stock. Wolfe Research's price target suggests a potential upside of 17.64% from the company's previous close.

A number of other equities research analysts also recently issued reports on LSTR. Truist Financial increased their price objective on Landstar System from $190.00 to $205.00 and gave the stock a "hold" rating in a research report on Wednesday, July 15th. Morgan Stanley reiterated an "underweight" rating and issued a $145.00 price objective on shares of Landstar System in a report on Monday, July 6th. The Goldman Sachs Group boosted their price objective on shares of Landstar System from $147.00 to $168.00 and gave the company a "sell" rating in a research report on Thursday, July 16th. Wells Fargo & Company boosted 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. Finally, Stifel Nicolaus upped their price objective on shares of Landstar System from $186.00 to $197.00 and gave the stock a "hold" rating in a report on Wednesday, July 29th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, eleven have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $196.00.

Landstar System Trading Up 2.9%

Shares of Landstar System stock traded up $5.15 on Tuesday, hitting $181.91. The stock had a trading volume of 18,776 shares, compared to its average volume of 524,616. The firm has a market capitalization of $6.17 billion, a P/E ratio of 47.19 and a beta of 0.89. The company has a debt-to-equity ratio of 0.05, a quick ratio of 1.82 and a current ratio of 1.82. Landstar System has a twelve month low of $119.32 and a twelve month high of $228.46. The stock has a 50 day moving average of $207.10 and a 200 day moving average of $178.40.

Landstar System (NASDAQ:LSTR - Get Free Report) last announced its earnings results 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 net margin of 2.64% and a return on equity of 20.84%. The business 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 EPS. The firm's revenue for the quarter was up 18.2% on a year-over-year basis. Sell-side analysts expect that Landstar System will post 5.8 earnings per share for the current fiscal year.

Landstar System declared that its Board of Directors has initiated a stock repurchase program on Tuesday, April 28th that permits the company to repurchase 1,115,195,000,000 outstanding shares. This repurchase authorization permits the transportation company to reacquire up to 3.3% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company's board 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 transaction of $2,488,514.88. Following the transaction, the director directly owned 18,853 shares of the company's stock, valued at $4,171,791.84. This represents a 37.36% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO James P. Todd sold 1,200 shares of the firm'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 SEC filing for this sale provides additional information. Company insiders own 0.74% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Los Angeles Capital Management LLC purchased a new stake in shares of Landstar System in the fourth quarter worth about $25,000. Global Retirement Partners LLC boosted its stake in Landstar System by 320.0% in the 4th quarter. Global Retirement Partners LLC now owns 189 shares of the transportation company's stock worth $27,000 after purchasing an additional 144 shares in the last quarter. Quarry LP acquired a new position in Landstar System during the third quarter valued at $25,000. Elevation Wealth Partners LLC increased its holdings in Landstar System by 41.8% in the second quarter. Elevation Wealth Partners LLC now owns 224 shares of the transportation company's stock valued at $46,000 after buying an additional 66 shares in the last quarter. Finally, Geneos Wealth Management Inc. boosted its position in 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. Hedge funds and other institutional investors own 97.95% of the company's stock.

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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