Landstar System Upgraded to Hold as Analysts Adjust Ratings
Shares of Landstar System (NASDAQ: LSTR) received an upgrade from Wall Street Zen, moving from a sell rating to a hold rating according to a research note released on October 28, 2023. This adjustment comes as several analysts have recently re-evaluated their positions on the stock, reflecting a cautious optimism in the company’s performance.
Analyst Ratings Shift
Following the upgrade by Wall Street Zen, other financial institutions have also revised their price targets for Landstar. On October 29, 2023, Stifel Nicolaus reduced its price target from $130.00 to $127.00, maintaining a “hold” rating. Similarly, JPMorgan Chase & Co. lowered its target from $138.00 to $134.00 while assigning a “neutral” rating. Evercore ISI adjusted its price target down from $132.00 to $125.00, also labeling the stock as “in-line.”
In contrast, Weiss Ratings reaffirmed a “sell (d)” rating on November 25, 2023, highlighting a divided outlook among analysts. Overall, the consensus from 14 analysts includes one strong buy, one buy, ten holds, and two sell ratings, leading to an average rating of “hold” with a consensus price target of $134.60, according to data from MarketBeat.com.
Quarterly Earnings Report
Landstar System recently released its quarterly earnings data, revealing earnings per share (EPS) of $1.22 for the quarter ending on October 28, 2023. This figure fell short of analysts’ expectations, which had estimated an EPS of $1.24. The company’s revenue matched the consensus estimate at $1.21 billion, although this represented a 0.7% decline compared to the same quarter last year.
During the previous year, Landstar had reported an EPS of $1.41. The company’s return on equity stood at 17.24% with a net margin of 2.87%. Analysts forecast that Landstar will achieve an EPS of $6.10 for the current fiscal year.
Dividend Announcement
In addition to the earnings report, Landstar System announced a quarterly dividend of $0.40 per share, scheduled for distribution on December 9, 2023. Shareholders on record as of November 18, 2023 will receive this dividend, which represents an annualized dividend of $1.60 and a yield of 1.2%. The company’s current payout ratio is 40.82%.
Institutional Ownership Trends
Recent changes in institutional trading have also impacted Landstar’s stock. Quarry LP initiated a new position valued at approximately $25,000 during the third quarter. Additionally, MAI Capital Management increased its holdings by 79.3% in the second quarter, now owning 242 shares worth around $34,000 after acquiring an additional 107 shares.
Other notable changes include Geneos Wealth Management Inc., which boosted its stake by 132.7% in the first quarter, and Thurston Springer Miller Herd & Titak Inc., which grew its holdings by 118.8% in the second quarter. Currently, 97.95% of Landstar System’s stock is owned by institutional investors and hedge funds.
As Landstar System navigates changing market conditions and investor sentiment, the outlook remains closely monitored by financial analysts, reflecting ongoing interest in its performance and potential for recovery.
