TD Cowen Issues Positive Forecast for Landstar System (NASDAQ:LSTR) Stock Price

Key Points

• TD Cowen raised its price target on Landstar from $150 to $175 while keeping a "hold" rating, a target that still implies roughly a 9.4% downside from the current share price.
• Landstar beat Q1 estimates (EPS $1.16 vs. $1.11) and the board authorized a share repurchase program equal to about 3.3% of outstanding shares, though revenue growth was modest and net margins remain thin.
• Analysts' consensus remains a Hold with a consensus target of $168, reflecting mixed sentiment across the brokerage community.

Landstar System (NASDAQ:LSTR - Get Free Report) had its price objective increased by research analysts at TD Cowen from $150.00 to $175.00 in a research note issued to investors on Wednesday. The firm currently has a "hold" rating on the transportation company's stock. TD Cowen's target price would indicate a potential downside of 9.42% from the stock's current price.

A number of other equities analysts have also recently issued reports on the stock. 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. Barclays upped their target price on shares of Landstar System from $130.00 to $155.00 and gave the company an "equal weight" rating in a research note on Thursday, January 15th. Wells Fargo & Company upgraded shares of Landstar System from an "equal weight" rating to an "overweight" rating and raised their price target for the stock from $145.00 to $170.00 in a research note on Tuesday, January 6th. Stifel Nicolaus lifted their price objective on Landstar System from $147.00 to $175.00 and gave the company a "hold" rating in a report on Wednesday. Finally, Truist Financial upped their price objective on Landstar System from $145.00 to $190.00 and gave the company a "hold" rating in a research note on Wednesday. One investment 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 assigned a Sell rating to the stock. According to MarketBeat.com, Landstar System presently has an average rating of "Hold" and a consensus target price of $168.00.

Landstar System Stock Performance

Shares of LSTR stock traded up $10.79 during mid-day trading on Wednesday, reaching $193.20. The stock had a trading volume of 132,996 shares, compared to its average volume of 527,521. 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 quick ratio of 1.75, a current ratio of 1.75 and a debt-to-equity ratio of 0.06. Landstar System has a one year low of $119.32 and a one year high of $195.77. The firm has a market cap of $6.56 billion, a PE ratio of 58.34 and a beta of 0.80.

Landstar System (NASDAQ:LSTR - Get Free Report) last issued its earnings results on Tuesday, April 28th. The transportation company reported $1.16 EPS for the quarter, beating analysts' consensus estimates of $1.11 by $0.05. The business had revenue of $1.17 billion during the quarter, compared to analyst estimates of $1.15 billion. Landstar System had a return on equity of 17.68% and a net margin of 2.42%.Landstar System's revenue was up 1.6% on a year-over-year basis. During the same period in the prior year, the company posted $0.95 earnings per share. On average, analysts forecast that Landstar System will post 5.44 EPS for the current year.

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

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Los Angeles Capital Management LLC bought a new stake in Landstar System during the 4th quarter worth about $25,000. Global Retirement Partners LLC increased its position in Landstar System by 320.0% in the 4th quarter. Global Retirement Partners LLC now owns 189 shares of the transportation company's stock valued at $27,000 after acquiring an additional 144 shares in the last quarter. Quarry LP bought a new position in shares of Landstar System in the third quarter worth about $25,000. Geneos Wealth Management Inc. lifted its position 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 worth $37,000 after purchasing an additional 142 shares in the last quarter. Finally, Private Trust Co. NA lifted its position in shares of Landstar System by 81.0% during the fourth quarter. Private Trust Co. NA now owns 277 shares of the transportation company's stock worth $40,000 after purchasing an additional 124 shares in the last quarter. Institutional investors and hedge funds own 97.95% of the company's stock.

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

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.