J.B. Hunt Transport Services, Inc. has achieved a new 52-week high, trading at $191.88 during mid-day trading on Tuesday. This surge follows an upgrade from Morgan Stanley, which raised its price target for the stock from $150.00 to $165.00 while maintaining an equal weight rating. The company’s last recorded trade was at $189.89, with a robust volume of 1,397,889 shares exchanged.
Several other financial institutions have recently revised their outlooks on J.B. Hunt. On October 17, 2023, Benchmark increased their price target from $165.00 to $175.00, giving the company a “buy” rating. On October 16, Barclays raised their target from $135.00 to $150.00, also assigning an equal weight rating. Stifel Nicolaus followed suit, increasing their target from $140.00 to $147.00 with a “hold” recommendation. Meanwhile, Citigroup adjusted its target from $170.00 to $163.00 while retaining a “buy” rating. Evercore ISI also lifted their price objective from $155.00 to $168.00, awarding the stock an “outperform” rating.
As of now, one research analyst has assigned a strong buy rating, ten have given a buy rating, and eleven have indicated a hold rating. According to MarketBeat.com, J.B. Hunt currently holds an average rating of “moderate buy” with a target price of approximately $167.05.
Institutional Investment Activity
Recent movements among institutional investors reflect growing interest in J.B. Hunt. Root Financial Partners LLC acquired a fresh position in the company, valued at about $25,000 during the third quarter. Summit Securities Group LLC significantly boosted its holdings by 19,600.0% in the first quarter, now owning 197 shares worth $29,000 after adding 196 shares.
Private Trust Co. NA increased its stake by 57.8% in the second quarter, acquiring 202 shares valued at $29,000 after purchasing an additional 74 shares. Cromwell Holdings LLC also raised its holdings by 52.2% during the third quarter, now owning 207 shares for a total of $28,000. Additionally, Sentry Investment Management LLC invested in J.B. Hunt during the third quarter, purchasing shares worth $32,000. Notably, approximately 74.95% of the stock is held by hedge funds and other institutional investors.
Financial Performance and Future Outlook
J.B. Hunt’s recent financial performance reinforces its strong market position. The company reported quarterly earnings on October 15, 2023, revealing earnings per share (EPS) of $1.76, surpassing analysts’ estimates of $1.46 by $0.30. The company generated revenue of $3.05 billion for the quarter, slightly exceeding expectations of $3.02 billion. However, this figure reflects a year-over-year decrease of 0.5%.
Analysts predict that J.B. Hunt will post an EPS of 6.37 for the current year, highlighting a positive outlook despite recent challenges.
Additionally, the company declared a quarterly dividend of $0.44, paid on November 21, 2023, to shareholders recorded on November 7. This dividend represents an annual payout of $1.76, yielding approximately 0.9%. With a dividend payout ratio of 30.50%, J.B. Hunt demonstrates a commitment to returning value to its shareholders.
The board approved a share repurchase plan on October 22, 2023, allowing the company to buy back shares on the open market, a move typically viewed as a sign that management believes its shares are undervalued.
About J.B. Hunt Transport Services
J.B. Hunt Transport Services, Inc. offers comprehensive surface transportation, delivery, and logistics services throughout the United States. The company operates across five segments: Intermodal (JBI), Dedicated Contract Services (DCS), Integrated Capacity Solutions (ICS), Final Mile Services (FMS), and Truckload (JBT). The JBI segment specializes in intermodal freight solutions, positioning J.B. Hunt as a significant player in the transportation sector.
The recent stock performance, analyst upgrades, and robust investment activity indicate a strong future for J.B. Hunt Transport Services as it navigates the complexities of the logistics industry.
