Landstar System (NASDAQ:LSTR) Stock Price Expected to Rise, Truist Financial Analyst Says

Key Points

• Truist raised its price target to $190 (from $145) but maintained a "hold" rating, which implies roughly a 2.5% downside from the recent share price and sits alongside a consensus analyst rating of "Hold" with a $168 target.
• Q1 earnings beat expectations: Landstar reported $1.16 EPS vs. $1.11 expected and $1.171B in revenue (up ~1.6% year-over-year), though profitability remains modest with a net margin of about 2.4%.
• Board approved a share repurchase equal to roughly 3.3% of outstanding shares, and the stock rallied ~6.9% to $194.93, near its 1-year high following the results.

Landstar System (NASDAQ:LSTR - Get Free Report) had its price target upped by equities research analysts at Truist Financial from $145.00 to $190.00 in a report issued on Wednesday,Benzinga reports. The brokerage currently has a "hold" rating on the transportation company's stock. Truist Financial's price target suggests a potential downside of 2.53% from the company's current price.

Several other brokerages also recently weighed in on LSTR. Robert W. Baird set a $164.00 target price on Landstar System in a research report on Friday, January 30th. Wells Fargo & Company raised shares of Landstar System from an "equal weight" rating to an "overweight" rating and boosted their target price for the stock from $145.00 to $170.00 in a research report on Tuesday, January 6th. Weiss Ratings lowered shares of Landstar System from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday, April 14th. Stifel Nicolaus boosted their price objective on shares of Landstar System from $147.00 to $175.00 and gave the stock a "hold" rating in a report on Wednesday. Finally, Barclays lifted their target price on Landstar System from $130.00 to $155.00 and gave the stock an "equal weight" rating in a research report on Thursday, January 15th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $168.00.

Landstar System Trading Up 6.9%

LSTR traded up $12.52 during trading on Wednesday, hitting $194.93. 150,363 shares of the company's stock were exchanged, compared to its average volume of 528,417. Landstar System has a 1 year low of $119.32 and a 1 year high of $195.84. The stock has a 50 day moving average price of $160.58 and a 200 day moving average price of $147.67. The firm has a market cap of $6.62 billion, a P/E ratio of 58.86 and a beta of 0.80. The company has a current ratio of 1.75, a quick ratio of 1.75 and a debt-to-equity ratio of 0.06.

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 the consensus estimate of $1.11 by $0.05. Landstar System had a net margin of 2.42% and a return on equity of 17.68%. The business had revenue of $1.17 billion for the quarter, compared to analyst estimates of $1.15 billion. During the same quarter in the previous year, the business posted $0.95 EPS. The business's quarterly revenue was up 1.6% on a year-over-year basis. As a group, analysts expect that Landstar System will post 5.44 EPS for the current fiscal year.

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

Institutional Trading of Landstar System

A number of large investors have recently modified their holdings of LSTR. Los Angeles Capital Management LLC acquired a new position in Landstar System during the 4th quarter valued at about $25,000. Quarry LP acquired a new stake in Landstar System in the 3rd quarter valued at approximately $25,000. Global Retirement Partners LLC boosted its position 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 acquiring an additional 144 shares during the period. UMB Bank n.a. grew its stake in shares of Landstar System by 335.8% in the third quarter. UMB Bank n.a. now owns 292 shares of the transportation company's stock worth $36,000 after purchasing an additional 225 shares in the last quarter. Finally, Geneos Wealth Management Inc. increased its holdings 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 valued at $37,000 after purchasing an additional 142 shares during the period. Institutional investors and hedge funds own 97.95% of the company's stock.

Landstar System News Roundup

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

• Positive Sentiment: Q1 earnings beat — Landstar reported EPS of $1.16 vs. consensus ~$1.11 and revenue of $1.171B (up ~1.6% y/y). Management provided slides/press release with the results. Landstar Q1 Press Release
• Positive Sentiment: Board authorized share repurchases — the board approved a buyback program allowing repurchases equal to roughly 3.3% of outstanding shares, signaling management thinks the stock is attractive at current levels. Buyback Report
• Positive Sentiment: Profitability and cash flow improved — quarter showed big year-over-year gains in gross profit and operating profit, net income +32% y/y, and operating cash flow increased materially, supporting capital returns and buybacks. Quiver Summary
• Neutral Sentiment: Quarterly dividend declared — Landstar set a $0.40 quarterly dividend (annualized yield ~0.9%); record/ex-div date May 19 and payable June 9. This is a modest yield but adds to shareholder returns.
• Neutral Sentiment: Earnings call transcript available — investors can review management commentary and Q&A for guidance and contract/mix details. Earnings Call Transcript
• Negative Sentiment: Top-line growth remains modest and margins thin — revenue grew only ~1.6% y/y and net margin was about 2.4%, and some outlets note revenue was essentially in line with or slightly below some expectations; investors should watch whether growth accelerates in coming quarters. Zacks Analysis

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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