Shares of J.B. Hunt Transport Services, Inc. (NASDAQ: JBHT) reached a new 52-week high on October 16, 2023, following an upgrade from Morgan Stanley. The investment bank raised its price target for the stock from $150.00 to $165.00, maintaining an equal weight rating. On that day, the stock traded as high as $191.88 before closing at $189.89, with a trading volume of nearly 1.4 million shares.
Analysts have shown increased confidence in J.B. Hunt’s potential. Following Morgan Stanley’s upgrade, Barclays elevated its price target from $135.00 to $150.00, also assigning an “equal weight” rating. TD Cowen adjusted its target price from $140.00 to $152.00, while Stifel Nicolaus raised its target from $140.00 to $147.00, maintaining a “hold” rating. Additionally, Evercore ISI increased its price objective from $155.00 to $168.00, reflecting an “outperform” rating. Finally, Sanford C. Bernstein set a target of $172.00.
As noted by MarketBeat, the consensus rating for J.B. Hunt is currently “Moderate Buy,” with an average target price of $167.05. Of the analysts covering the stock, one has issued a Strong Buy rating, ten have a Buy rating, and eleven have opted for Hold.
Insider Transactions and Institutional Activity
Recent insider trading activity indicates ongoing changes in ownership. Albert Brad Delco, the Chief Financial Officer, sold 1,000 shares on December 2, 2023, at an average price of $179.54, bringing in a total of $179,540.00. Following this transaction, Delco holds 7,043 shares valued at approximately $1,264,500.22, reflecting a 12.43% decrease in his ownership.
Another insider, Bradley W. Hicks, sold 2,000 shares on December 3, 2023, for an average price of $190.04, totaling $380,080.00. Post-transaction, Hicks retains 30,499 shares valued at about $5,796,029.96, marking a 6.15% decrease in his position. Over the last three months, company insiders have sold a combined total of 12,725 shares worth $2,237,846.
Institutional investors have also been adjusting their stakes. Root Financial Partners LLC acquired a new stake worth $25,000 in the third quarter. Summit Securities Group LLC significantly increased its stake by 19,600%, now holding 197 shares valued at $29,000 after acquiring an additional 196 shares. Private Trust Co. NA raised its stake by 57.8%, now owning 202 shares valued at $29,000 after increasing its position by 74 shares. Cromwell Holdings LLC also raised its holdings by 52.2% during the third quarter.
Currently, institutional investors own approximately 74.95% of J.B. Hunt stock.
Financial Performance and Future Outlook
J.B. Hunt’s market capitalization stands at $18.08 billion, with a price-to-earnings (P/E) ratio of 32.91 and a beta of 1.27. The company’s recent quarterly earnings, released on October 15, 2023, reported earnings per share (EPS) of $1.76, surpassing analysts’ expectations of $1.46 by $0.30. Revenue for the quarter reached $3.05 billion, slightly higher than the forecast of $3.02 billion, although down 0.5% year-over-year.
Analysts predict that J.B. Hunt will achieve an EPS of $6.37 for the current year, indicating continued financial strength.
In addition to its stock performance, J.B. Hunt recently declared a quarterly dividend of $0.44, which was paid to shareholders on November 21, 2023. The dividend represents an annualized payout of $1.76, yielding 0.9%, with a payout ratio of 30.50%. Furthermore, the board approved a stock buyback plan, allowing the company to repurchase shares, a move typically indicative of management’s confidence in the stock’s valuation.
Founded in 1961, J.B. Hunt Transport Services, Inc. provides a range of surface transportation and logistics services across the United States, operating through five segments: Intermodal, Dedicated Contract Services, Integrated Capacity Solutions, Final Mile Services, and Truckload. The company’s strong performance and favorable analyst outlook suggest a promising future for J.B. Hunt in the transportation industry.
