Landstar System (NASDAQ:LSTR) Rating Increased to Strong-Buy at Zacks Research

Key Points

• Zacks Research upgraded Landstar System to “strong buy” from “hold,” although the broader analyst consensus remains “hold” with an average price target of $196.
• Landstar’s latest quarter showed mixed results: earnings per share of $1.44 missed estimates of $1.49, while revenue reached $1.43 billion and grew 18.2% year over year.
• The company authorized a share repurchase program covering up to 3.3% of outstanding shares, while insiders recently sold shares and institutional investors own approximately 97.95% of the stock.

Landstar System (NASDAQ:LSTR - Get Free Report) was upgraded by research analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a report released on Monday,Zacks.com reports.

Several other brokerages also recently commented on LSTR. Janney Montgomery Scott set a $182.00 price objective on shares of Landstar System in a research note on Wednesday, July 29th. UBS Group restated a "neutral" rating and set a $195.00 price target on shares of Landstar System in a report on Wednesday, July 29th. Robert W. Baird reduced their price target on Landstar System from $225.00 to $215.00 and set an "outperform" rating on the stock in a report on Wednesday, July 29th. TD Cowen lowered their price target on Landstar System from $182.00 to $178.00 and set a "hold" rating for the company in a research report on Tuesday, July 28th. Finally, 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. Two equities research analysts have rated the stock with a Strong Buy rating, three have given a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $196.00.

Landstar System Stock Up 2.7%

Shares of NASDAQ LSTR opened at $181.62 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. Landstar System has a 52 week low of $119.32 and a 52 week high of $228.46. The firm's fifty day moving average is $206.69 and its 200 day moving average is $178.59. The company has a market cap of $6.16 billion, a price-to-earnings ratio of 47.05 and a beta of 0.90.

Landstar System (NASDAQ:LSTR - Get Free Report) last announced its quarterly earnings results on Tuesday, July 28th. The transportation company reported $1.44 earnings per share for the quarter, missing the consensus estimate of $1.49 by ($0.05). The firm had revenue of $1.43 billion for the quarter, compared to analysts' expectations of $1.34 billion. Landstar System had a net margin of 2.64% and a return on equity of 20.84%. The company's quarterly revenue was up 18.2% on a year-over-year basis. During the same period in the previous year, the company earned $1.20 EPS. On average, equities research analysts expect that Landstar System will post 5.8 earnings per share for the current year.

Landstar System announced that its Board of Directors has authorized a share repurchase 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 shares through open market purchases. Shares buyback plans are often a sign that the company's management believes its stock is undervalued.

Insider Activity

In related news, Director Diana M. Murphy sold 11,246 shares of the stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $221.28, for a total value of $2,488,514.88. Following the completion of 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CFO James P. Todd sold 1,200 shares of Landstar System stock in a transaction that occurred 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 ownership of the stock. The SEC filing for this sale provides additional information. 0.74% of the stock is owned by insiders.

Institutional Investors Weigh In On Landstar System

Several hedge funds have recently made changes to their positions in the company. Los Angeles Capital Management LLC bought a new position in Landstar System in the fourth quarter worth $25,000. Global Retirement Partners LLC boosted its holdings in shares of Landstar System by 320.0% during the 4th quarter. Global Retirement Partners LLC now owns 189 shares of the transportation company's stock valued at $27,000 after buying an additional 144 shares in the last quarter. Quarry LP bought a new stake in shares of Landstar System during the 3rd quarter valued at $25,000. Elevation Wealth Partners LLC grew its position in shares of Landstar System by 41.8% in 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 period. Finally, Geneos Wealth Management Inc. grew its position in shares of Landstar System by 132.7% in the 1st 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 currently owned by institutional investors.

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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