Shares of Landstar System, Inc. (NASDAQ:LSTR) fell significantly by 16.6% during trading on Thursday, closing at $135.73 after reaching a low of $138.65. Trading volume increased to 553,068 shares, up 16% from the average session volume of 477,990 shares. The stock had previously closed at $162.75.
Analyst Reactions Impact Stock Performance
Several analysts have recently modified their ratings on Landstar System, contributing to the stock’s decline. Wells Fargo & Company upgraded Landstar from an “equal weight” to an “overweight” rating, raising their target price from $145.00 to $170.00 on January 6, 2024. In contrast, Zacks Research shifted their rating from a “strong sell” to a “hold” on December 8, 2023.
Furthermore, TD Cowen reiterated a “hold” rating on January 9, 2024, while Truist Financial lowered their target price from $150.00 to $145.00 in a report dated January 29, 2024. Susquehanna also raised their price target from $110.00 to $160.00, assigning a “neutral” rating on January 8, 2024. Currently, one analyst rates the stock as a Strong Buy, one as Buy, and thirteen maintain a Hold rating, leading to a consensus target price of $153.00 according to MarketBeat.com.
Financial Overview and Dividend Announcement
As of the latest data, Landstar System has a market capitalization of $4.72 billion and a price-to-earnings (P/E) ratio of 41.50. The company maintains a low debt-to-equity ratio of 0.06 and has a quick ratio of 2.01 along with a current ratio of 1.75. The stock’s fifty-day simple moving average stands at $149.50, while the two-hundred-day moving average is $136.12.
In addition to the stock performance, Landstar System announced a quarterly dividend of $0.40 per share, set to be paid on March 11, 2024. Investors on record as of February 18, 2024 will receive this dividend. This represents an annualized dividend of $1.60 and a yield of 1.2%, with a payout ratio currently at 48.34%.
Significant institutional activity has also been noted, with several hedge funds adjusting their stakes in Landstar System. For instance, Peterson Wealth Services increased its holdings by 1,108.4% in the third quarter, now owning 10,960 shares valued at $1.34 million. Alps Advisors Inc. raised its position by 69.8%, while Ballast Asset Management LP lifted its stake by 28.2%. Overall, institutional investors own approximately 97.95% of the company’s stock.
Founded in 1968 and headquartered in Jacksonville, Florida, Landstar System specializes in integrated transportation management solutions through a network of independent agents and third-party capacity providers. The firm offers services including truckload brokerage, intermodal, air and ocean freight, and supply chain management, leveraging technology for real-time load matching and shipment tracking.
As the situation develops, investors and analysts will be closely monitoring Landstar System’s performance and the broader implications of these stock fluctuations.
