David Keefauver, Executive Vice President of DCS at J.B. Hunt Transport Services Inc. (NASDAQ:JBHT), recently sold shares of the company. According to a Form 4 filing with the Securities and Exchange Commission, Keefauver disposed of 1,151 shares of common stock at an average price of $195.03 per share, totaling approximately $224,479. Following this transaction, Keefauver holds 1,477 shares directly. Additionally, he retains 8,757.54 shares in a 401(k) plan and various holdings of restricted stock, which include underlying common stock shares totaling 11,836.
In other recent news, J.B. Hunt Transport Services reported mixed results for the third quarter, with a 3% decline in revenue, a 7% drop in operating income, and a 17% decrease in diluted earnings per share. However, the company saw a 5% year-over-year increase in intermodal volumes. Amid these developments, J.B. Hunt set a quarterly dividend at $0.43 per share, demonstrating an ongoing commitment to shareholder returns.
In analyst news, CFRA downgraded J.B. Hunt's stock rating to Sell and lowered the price target from $174 to $151. Conversely, Stifel financial firm raised its price target for J.B. Hunt to $167, maintaining a Hold rating, while Baird reaffirmed its Outperform rating with a price target of $205.
In addition, J.B. Hunt revised its capital expenditures for 2024 down to $625 million and repurchased approximately $200 million in stock. The company expects new account gross sales to be within the annual range of 1,000 to 1,200 trucks and anticipates operating income growth to lag behind fleet growth. These are the recent developments for J.B. Hunt Transport Services.
InvestingPro Insights
As David Keefauver's recent stock sale draws attention, it's worth examining J.B. Hunt Transport Services Inc.'s (NASDAQ:JBHT) financial health and market position. According to InvestingPro data, the company boasts a market capitalization of $19.48 billion, reflecting its significant presence in the transportation sector.
J.B. Hunt has demonstrated a commitment to shareholder returns, with InvestingPro Tips highlighting that the company has raised its dividend for 11 consecutive years and maintained dividend payments for 21 years straight. This consistent dividend policy may provide some reassurance to investors in light of insider selling activity.
The company's financial metrics present a mixed picture. While J.B. Hunt's revenue for the last twelve months as of Q3 2023 stood at $12.24 billion, it experienced a revenue decline of 7.07% over the same period. Despite this, the company remains profitable, with a gross profit of $2.3 billion and an EBITDA of $1.58 billion for the last twelve months.
Investors should note that J.B. Hunt is trading at a relatively high earnings multiple, with a P/E ratio of 34.93. This valuation suggests that the market has high expectations for the company's future performance, which could be influenced by factors such as the recent insider selling and overall industry trends.
It's worth mentioning that InvestingPro offers 9 additional tips for J.B. Hunt, providing a more comprehensive analysis for those seeking deeper insights into the company's prospects and challenges.
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