Todd James, Vice President and Chief Financial Officer of Landstar System Inc. (NASDAQ:LSTR), recently sold 1,000 shares of the company's common stock. The transaction, which took place on November 6, 2024, was executed at a price of $184.32 per share, amounting to a total sale value of $184,320. Following this transaction, James holds 14,083 shares in the company. This sale is part of routine insider trading activities reported to the Securities and Exchange Commission.
In other recent news, Landstar System has been in the spotlight following its third-quarter earnings report and subsequent analysis from financial services firm Stifel. Landstar's Q3 report revealed earnings per share of $1.41, slightly below the consensus estimate of $1.45, and total revenues of $1.218 billion, nearly meeting the midpoint of the company's guidance. Despite facing challenges in the freight industry, Landstar demonstrated resilience, a point highlighted by Stifel.
Furthermore, the company reported a drop in its third-quarter earnings, with gross profit at $112.7 million, a decline from $128.1 million in the same quarter of 2023. Nevertheless, Landstar anticipates fourth-quarter revenue to be between $1.15 billion and $1.25 billion, with earnings per share expected to range from $1.25 to $1.45.
Stifel adjusted its price target for Landstar, raising it to $164.00 from the previous $160.00, while maintaining a Hold rating on the stock. The firm acknowledged Landstar's solid performance amidst challenging conditions but also expressed a conservative outlook on the stock's future growth potential. These are among the recent developments that have shaped Landstar's current standing in the market.
InvestingPro Insights
As Todd James, CFO of Landstar System Inc. (NASDAQ:LSTR), reduces his stake in the company, investors might be curious about the current financial health and market position of the transportation and logistics firm. According to InvestingPro data, Landstar's market capitalization stands at $6.75 billion, reflecting its significant presence in the industry.
Despite the recent insider sale, Landstar maintains a strong financial position. An InvestingPro Tip highlights that the company holds more cash than debt on its balance sheet, indicating financial stability. This solid footing is further reinforced by another tip noting that Landstar's liquid assets exceed its short-term obligations, which could provide reassurance to investors concerned about the company's ability to meet its near-term financial commitments.
From a valuation perspective, Landstar is trading at a P/E ratio of 32.83, which some may consider high. This aligns with an InvestingPro Tip suggesting that the company is trading at a high earnings multiple. Investors should weigh this against Landstar's growth prospects and industry position when considering the stock's potential.
It's worth noting that Landstar has a track record of shareholder returns, having maintained dividend payments for 20 consecutive years and raised its dividend for 5 consecutive years, as per InvestingPro Tips. The current dividend yield stands at 1.82%, which may appeal to income-focused investors.
For those interested in a deeper dive into Landstar's financials and market outlook, InvestingPro offers 11 additional tips that could provide valuable insights for investment decisions.
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