J.B. Hunt Transport Services, Inc. (NASDAQ: JBHT) achieved a new 52-week high during trading on Tuesday, reaching $191.88 after an upgrade from Morgan Stanley. The investment bank raised its price target on the stock from $150.00 to $165.00, maintaining an equal weight rating. The stock closed at $189.89, following a previous close of $188.41, with a trading volume of nearly 1.4 million shares.
Analysts are increasingly optimistic about J.B. Hunt’s future. Benchmark recently raised its price target from $165.00 to $175.00 and assigned a “buy” rating. Barclays also increased its target price from $135.00 to $150.00, while maintaining an equal weight rating. Similarly, Stifel Nicolaus lifted its target from $140.00 to $147.00, categorizing the stock as a “hold.” Citigroup, on the other hand, reduced its price target from $170.00 to $163.00 but still rated the company as a “buy.” Lastly, Evercore ISI raised its price objective from $155.00 to $168.00, rating the stock as “outperform.”
As of now, one analyst has rated the stock with a strong buy designation, ten have given it a buy rating, and eleven have recommended holding. According to MarketBeat.com, J.B. Hunt currently holds an average rating of “Moderate Buy” with an average target price of $167.05.
Recent Institutional Activity
Various institutional investors have recently adjusted their stakes in J.B. Hunt. Root Financial Partners LLC acquired a new position valued at approximately $25,000 during the third quarter. Summit Securities Group LLC significantly increased its holdings by 19,600%, now owning 197 shares worth around $29,000 after purchasing an additional 196 shares.
Private Trust Co. NA raised its stake by 57.8%, now holding 202 shares valued at $29,000, while Cromwell Holdings LLC increased its holdings by 52.2%, owning 207 shares worth $28,000. Additionally, Sentry Investment Management LLC bought a new stake worth $32,000. Currently, institutional investors own approximately 74.95% of the company’s stock.
Financial Performance and Future Outlook
J.B. Hunt Transport Services reported its quarterly earnings on October 15, 2023, revealing earnings per share (EPS) of $1.76, surpassing analysts’ expectations of $1.46 by $0.30. The company achieved revenue of $3.05 billion, slightly above the anticipated $3.02 billion. Although this represents a 0.5% decline compared to the same quarter last year, the firm posted a return on equity of 15.16% and a net margin of 4.75%.
Analysts are forecasting an average EPS of $6.37 for the current fiscal year, reflecting a positive outlook for the company’s financial health.
In addition to its strong performance, J.B. Hunt announced a quarterly dividend of $0.44, which was paid on November 21, 2023. This equates to an annualized dividend of $1.76 and a yield of 0.9%. The ex-dividend date was set for November 7, 2023, and the company’s dividend payout ratio stands at 30.50%.
Furthermore, J.B. Hunt’s board approved a share repurchase plan on October 22, 2023, allowing the company to repurchase shares through open market purchases. Such plans often indicate that management believes the company’s shares are undervalued.
J.B. Hunt Transport Services operates in the transportation sector, providing surface transportation, delivery, and logistics services across the United States. The company operates through five segments: Intermodal (JBI), Dedicated Contract Services (DCS), Integrated Capacity Solutions (ICS), Final Mile Services (FMS), and Truckload (JBT). This diversified approach positions J.B. Hunt as a key player in the logistics and transportation industry.
