Landstar System (NASDAQ:LSTR) to Repurchase 1,115,195,000,000 Outstanding Stock

Key Points

• Landstar's board authorized a stock buyback to repurchase 1,115,195,000,000 outstanding shares, representing up to 3.3% of its stock, a move the company frames as a sign the board views the shares as undervalued.
• In the most recent quarter Landstar beat expectations with EPS of $1.16 versus $1.10 expected and revenue of $1.17 billion versus $1.15 billion expected, and the stock rose to $182.41 on the news.
• Analysts hold a consensus Hold rating with a $155.55 target, based on 1 Strong Buy, 1 Buy, 11 Hold and 1 Sell recommendations.

Landstar System (NASDAQ:LSTR - Get Free Report) announced that its board has initiated a stock buyback program on Tuesday, April 28th, RTT News reports. The company plans to repurchase 1,115,195,000,000 outstanding shares. This repurchase authorization permits the transportation company to repurchase up to 3.3% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's board of directors believes its stock is undervalued.

Wall Street Analyst Weigh In

Several analysts have issued reports on LSTR shares. Weiss Ratings cut shares of Landstar System from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Tuesday, April 14th. Robert W. Baird set a $164.00 price objective on shares of Landstar System in a research report on Friday, January 30th. Evercore raised their price objective on shares of Landstar System from $125.00 to $151.00 and gave the company an "in-line" rating in a research report on Monday, January 12th. Wells Fargo & Company upgraded shares of Landstar System from an "equal weight" rating to an "overweight" rating and raised their price objective for the company from $145.00 to $170.00 in a research report on Tuesday, January 6th. Finally, Benchmark restated a "hold" rating on shares of Landstar System in a research report on Thursday, January 29th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $155.55.

Landstar System Price Performance

Shares of Landstar System stock traded up $2.28 on Tuesday, hitting $182.41. 596,569 shares of the company traded hands, compared to its average volume of 378,241. The firm's 50-day simple moving average is $160.58 and its 200 day simple moving average is $147.67. The company has a current ratio of 1.75, a quick ratio of 1.75 and a debt-to-equity ratio of 0.06. The company has a market cap of $6.20 billion, a P/E ratio of 55.11 and a beta of 0.80. Landstar System has a 12-month low of $119.32 and a 12-month high of $182.78.

Landstar System (NASDAQ:LSTR - Get Free Report) last posted its quarterly earnings data on Tuesday, April 28th. The transportation company reported $1.16 earnings per share for the quarter, beating the consensus estimate of $1.10 by $0.06. The firm had revenue of $1.17 billion for the quarter, compared to analysts' expectations of $1.15 billion. Landstar System had a net margin of 2.42% and a return on equity of 17.68%. The business's quarterly revenue was up 1.6% on a year-over-year basis. During the same quarter last year, the company posted $0.95 EPS. Analysts expect that Landstar System will post 5.44 earnings per share for the current fiscal year.

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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