Landstar System (NASDAQ:LSTR) Shares Gap Down - Here's Why

Key Points

• Landstar System shares gapped down ahead of Friday’s open, falling from a prior close of $207.97 to an opening price of $198.90.
• Analyst sentiment remains cautious overall: the stock has a consensus rating of “Hold” with an average price target of $192.42, even after several firms lifted their targets.
• The company recently beat quarterly earnings and revenue estimates, posted a dividend of $0.40 per share, and authorized a stock buyback for up to 3.3% of shares outstanding.

Landstar System, Inc. (NASDAQ:LSTR - Get Free Report)'s stock price gapped down before the market opened on Friday . The stock had previously closed at $207.97, but opened at $198.90. Landstar System shares last traded at $199.7920, with a volume of 29,635 shares trading hands.

Wall Street Analyst Weigh In

LSTR has been the topic of several research analyst reports. Evercore set a $181.00 target price on Landstar System in a research note on Wednesday, April 29th. The Goldman Sachs Group increased 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. Barclays boosted their target price on shares of Landstar System from $155.00 to $190.00 and gave the stock an "equal weight" rating in a research report on Thursday, June 25th. UBS Group upped their price target on shares of Landstar System from $147.00 to $185.00 and gave the company a "neutral" rating in a research note on Wednesday, April 29th. Finally, Robert W. Baird raised their price target 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. One investment 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 company. Based on data from MarketBeat.com, Landstar System presently has a consensus rating of "Hold" and an average price target of $192.42.

Landstar System Price Performance

The company has a quick ratio of 1.88, a current ratio of 1.88 and a debt-to-equity ratio of 0.05. The stock's 50 day moving average price is $207.69 and its two-hundred day moving average price is $176.92. The stock has a market cap of $6.83 billion, a price-to-earnings ratio of 55.50 and a beta of 0.89.

Landstar System (NASDAQ:LSTR - Get Free Report) last posted its quarterly earnings results on Tuesday, April 28th. The transportation company reported $1.16 EPS for the quarter, beating the consensus estimate of $1.11 by $0.05. The company had revenue of $1.17 billion for 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%. The firm's revenue was up 1.6% on a year-over-year basis. During the same period in the prior year, the company earned $0.95 earnings per share. Equities research analysts forecast that Landstar System, Inc. will post 5.73 EPS for the current fiscal year.

Landstar System Announces Dividend

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

Landstar System declared that its Board of Directors has authorized a stock repurchase plan on Tuesday, April 28th that authorizes the company to buyback 1,115,195,000,000 shares. This buyback authorization authorizes the transportation company to purchase up to 3.3% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's management believes its shares are undervalued.

Insider Buying and Selling

In other Landstar System news, Director Diana M. Murphy sold 11,246 shares of the business'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 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 approximately $4,171,791.84. The trade was a 37.36% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO James P. Todd sold 1,200 shares of the company's stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $218.17, for a total value 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 disclosure for this sale is available in the SEC filing. Insiders own 0.74% of the company's stock.

Hedge Funds Weigh In On Landstar System

Several institutional investors and hedge funds have recently modified their holdings of the business. Los Angeles Capital Management LLC acquired a new position in shares of Landstar System during the 4th quarter worth approximately $25,000. Global Retirement Partners LLC increased its holdings in shares of Landstar System by 320.0% in the fourth quarter. Global Retirement Partners LLC now owns 189 shares of the transportation company's stock valued at $27,000 after purchasing an additional 144 shares during the last quarter. Quarry LP acquired a new position in Landstar System in the 3rd quarter valued at about $25,000. Elevation Wealth Partners LLC increased its stake in Landstar System by 41.8% during the second quarter. Elevation Wealth Partners LLC now owns 224 shares of the transportation company's stock worth $46,000 after acquiring an additional 66 shares during the last quarter. Finally, Geneos Wealth Management Inc. raised its holdings in Landstar System by 132.7% in the 1st quarter. Geneos Wealth Management Inc. now owns 249 shares of the transportation company's stock valued at $37,000 after buying an additional 142 shares during the period. Hedge funds and other 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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