Stifel Nicolaus Forecasts Strong Price Appreciation for Landstar System (NASDAQ:LSTR) Stock

Key Points

• Stifel Nicolaus raised its price target for Landstar from $147 to $175 but kept a "hold" rating, implying roughly an 8.1% downside versus the current ~$190.50 share price; the consensus analyst rating remains Hold with an average target of $158.09.
• Landstar delivered a Q1 earnings beat (EPS $1.16 vs. $1.11, revenue $1.171B, +1.6% y/y), and the board authorized buybacks equal to about 3.3% of outstanding shares and declared a $0.40 quarterly dividend, though top-line growth and net margins (~2.4%) remain modest.

Landstar System (NASDAQ:LSTR - Get Free Report) had its price target upped by Stifel Nicolaus from $147.00 to $175.00 in a research note issued on Wednesday,Benzinga reports. The firm currently has a "hold" rating on the transportation company's stock. Stifel Nicolaus' price objective would suggest a potential downside of 8.14% from the company's current price.

A number of other equities analysts also recently weighed in on LSTR. Weiss Ratings downgraded shares of Landstar System from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Tuesday, April 14th. Wells Fargo & Company raised shares of Landstar System from an "equal weight" rating to an "overweight" rating and increased their price target for the company from $145.00 to $170.00 in a research note on Tuesday, January 6th. TD Cowen restated a "hold" rating on shares of Landstar System in a research report on Friday, January 9th. JPMorgan Chase & Co. upped their price objective on Landstar System from $134.00 to $162.00 and gave the stock a "neutral" rating in a report on Monday, January 12th. Finally, Truist Financial decreased their price objective on Landstar System from $150.00 to $145.00 and set a "hold" rating on the stock 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 given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, Landstar System has a consensus rating of "Hold" and an average target price of $158.09.

Landstar System Price Performance

Shares of LSTR stock opened at $190.50 on Wednesday. The stock's fifty day moving average is $160.58 and its 200-day moving average is $147.67. The company has a debt-to-equity ratio of 0.06, a quick ratio of 1.75 and a current ratio of 1.75. The stock has a market capitalization of $6.47 billion, a PE ratio of 57.80 and a beta of 0.80. Landstar System has a 52 week low of $119.32 and a 52 week high of $195.77.

Landstar System (NASDAQ:LSTR - Get Free Report) last announced its 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. Landstar System had a return on equity of 17.68% and a net margin of 2.42%.The company had revenue of $1.17 billion during the quarter, compared to analyst estimates of $1.15 billion. During the same period last year, the company posted $0.95 earnings per share. The firm's quarterly revenue was up 1.6% compared to the same quarter last year. Equities research analysts expect that Landstar System will post 5.44 EPS for the current fiscal year.

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

Hedge Funds Weigh In On Landstar System

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. M&T Bank Corp raised its position in shares of Landstar System by 151,424.4% during the 4th quarter. M&T Bank Corp now owns 6,294,325 shares of the transportation company's stock valued at $904,495,000 after acquiring an additional 6,290,171 shares during the last quarter. Boston Partners lifted its stake in shares of Landstar System by 24.1% in the 3rd quarter. Boston Partners now owns 1,761,526 shares of the transportation company's stock valued at $216,242,000 after purchasing an additional 341,808 shares during the period. AQR Capital Management LLC boosted its position in shares of Landstar System by 185.5% in the 4th quarter. AQR Capital Management LLC now owns 987,087 shares of the transportation company's stock worth $141,844,000 after purchasing an additional 641,319 shares during the last quarter. First Trust Advisors LP boosted its position in shares of Landstar System by 31.8% in the 3rd quarter. First Trust Advisors LP now owns 964,297 shares of the transportation company's stock worth $118,184,000 after purchasing an additional 232,682 shares during the last quarter. Finally, JPMorgan Chase & Co. grew its stake in shares of Landstar System by 2.9% during the third quarter. JPMorgan Chase & Co. now owns 746,506 shares of the transportation company's stock worth $91,492,000 after purchasing an additional 21,163 shares during the period. 97.95% of the stock is owned by institutional investors.

Landstar System News Summary

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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