Landstar System (NASDAQ:LSTR) Upgraded by Wall Street Zen to Buy Rating

Key Points

• Wall Street Zen upgraded Landstar System from hold to buy, adding to generally cautious analyst sentiment that still shows a consensus Hold rating and average price target of $189.09.
• The company reported better-than-expected quarterly results, with earnings of $1.16 per share versus estimates of $1.11 and revenue of $1.17 billion slightly topping forecasts.
• Landstar also announced a share buyback authorization covering up to about 3.3% of outstanding shares, while insiders recently sold shares and institutional ownership remains very high at 97.95%.

Landstar System (NASDAQ:LSTR - Get Free Report) was upgraded by Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued to investors on Saturday.

Several other equities research analysts have also recently weighed in on the stock. Wells Fargo & Company increased their target price on shares of Landstar System from $200.00 to $240.00 and gave the company an "overweight" rating in a research note on Friday, June 5th. UBS Group boosted their price target on Landstar System from $147.00 to $185.00 and gave the company a "neutral" rating in a research note on Wednesday, April 29th. Evercore set a $181.00 price target on Landstar System in a report on Wednesday, April 29th. Barclays raised their price objective on Landstar System from $155.00 to $190.00 and gave the stock an "equal weight" rating in a research report on Thursday, June 25th. Finally, Susquehanna lifted their price objective on Landstar System from $185.00 to $195.00 and gave the stock a "neutral" rating in a report on Wednesday, April 29th. Two analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $189.09.

Landstar System Stock Performance

Shares of LSTR stock opened at $208.21 on Friday. Landstar System has a 1 year low of $119.32 and a 1 year high of $228.46. The firm's fifty day simple moving average is $199.44 and its 200 day simple moving average is $169.95. The firm has a market capitalization of $7.06 billion, a P/E ratio of 57.52 and a beta of 0.89. The company has a current ratio of 1.88, a quick ratio of 1.88 and a debt-to-equity ratio of 0.05.

Landstar System (NASDAQ:LSTR - Get Free Report) last issued its quarterly earnings results on Tuesday, April 28th. The transportation company reported $1.16 earnings per share for the quarter, beating analysts' consensus estimates of $1.11 by $0.05. The firm had revenue of $1.17 billion during the quarter, compared to the consensus estimate of $1.16 billion. Landstar System had a net margin of 2.62% and a return on equity of 19.49%. The business's revenue was up 1.6% on a year-over-year basis. During the same period in the prior year, the firm earned $0.95 EPS. As a group, sell-side analysts predict that Landstar System will post 5.57 EPS for the current year.

Landstar System announced that its board has authorized a share buyback plan on Tuesday, April 28th that allows the company to repurchase 1,115,195,000,000 outstanding shares. This repurchase authorization allows the transportation company to buy up to 3.3% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's leadership believes its stock is undervalued.

Insider Activity

In other Landstar System news, CFO James P. Todd sold 1,200 shares of Landstar System stock in a transaction that occurred on Monday, June 15th. The stock was 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 of the company's stock, valued at approximately $3,299,166.74. The trade was a 7.35% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Diana M. Murphy sold 11,246 shares of Landstar System stock in a transaction that occurred on 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 sale, the director directly owned 18,853 shares in the company, valued at $4,171,791.84. The trade was a 37.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 0.74% of the company's stock.

Hedge Funds Weigh In On Landstar System

Several hedge funds and other institutional investors have recently modified their holdings of the stock. First Citizens Bank & Trust Co. grew its position in Landstar System by 1.5% in the first quarter. First Citizens Bank & Trust Co. now owns 4,710 shares of the transportation company's stock valued at $755,000 after acquiring an additional 68 shares during the period. Petros Family Wealth LLC lifted its holdings in shares of Landstar System by 4.9% during the first quarter. Petros Family Wealth LLC now owns 1,548 shares of the transportation company's stock valued at $248,000 after acquiring an additional 73 shares during the period. CIBC Private Wealth Group LLC lifted its holdings in shares of Landstar System by 29.5% during the fourth quarter. CIBC Private Wealth Group LLC now owns 342 shares of the transportation company's stock valued at $49,000 after acquiring an additional 78 shares during the period. SkyView Investment Advisors LLC boosted its stake in shares of Landstar System by 1.4% in the 4th quarter. SkyView Investment Advisors LLC now owns 6,388 shares of the transportation company's stock valued at $918,000 after purchasing an additional 89 shares in the last quarter. Finally, Oregon Public Employees Retirement Fund boosted its stake in shares of Landstar System by 1.3% in the 1st quarter. Oregon Public Employees Retirement Fund now owns 6,987 shares of the transportation company's stock valued at $1,120,000 after purchasing an additional 91 shares in the last quarter. 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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