Nisa Investment Advisors Reduces Stake in J.B. Hunt Transport Services

Nisa Investment Advisors LLC has reduced its stake in J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) by 4.8% during the second quarter of 2023, according to a recent filing with the Securities and Exchange Commission. The firm now holds 11,223 shares of J.B. Hunt after selling 562 shares in the quarter, with a total value of approximately $1.61 million at the end of June.

Other institutional investors have also adjusted their holdings in J.B. Hunt. For instance, Summit Securities Group LLC dramatically increased its stake by an astonishing 19,600.0% in the first quarter, now owning 197 shares valued at $29,000 after acquiring an additional 196 shares. Similarly, Private Trust Co. NA grew its stake by 57.8% during the same period, holding 202 shares also worth $29,000 after purchasing 74 more shares.

Allworth Financial LP raised its holdings in J.B. Hunt by 167.0% in the first quarter, now owning 235 shares valued at $35,000. Meanwhile, National Pension Service increased its stake by 74.9%, ending with 306 shares worth $45,000 following the purchase of 131 additional shares. Farther Finance Advisors LLC also boosted its holdings by 38.6% in the second quarter, now possessing 316 shares valued at $45,000.

Overall, hedge funds and institutional investors collectively own around 74.95% of J.B. Hunt’s stock.

Recent Stock Performance and Financial Results

As of the latest trading session, J.B. Hunt Transport Services shares opened at $166.64. The company boasts a market capitalization of $15.87 billion and a price-to-earnings (P/E) ratio of 28.88. Over the past year, the stock has fluctuated between a low of $122.79 and a high of $200.40. The current 50-day moving average is $145.43, while the 200-day moving average stands at $143.09.

In its most recent earnings report on October 15, 2023, J.B. Hunt reported earnings per share (EPS) of $1.76, surpassing analysts’ expectations of $1.46 by $0.30. The company generated revenue of $3.05 billion, slightly exceeding the consensus estimate of $3.02 billion. Despite the positive earnings, revenue declined by 0.5% year-over-year, down from $1.49 EPS recorded in the same quarter last year. Analysts project that J.B. Hunt will achieve an EPS of $6.37 for the current fiscal year.

Stock Repurchase and Dividend Announcement

On October 22, 2023, J.B. Hunt’s board of directors announced a stock repurchase plan, allowing the company to buy back shares through open market purchases. Such plans typically indicate that the board believes the company’s stock is undervalued.

Additionally, the company declared a quarterly dividend of $0.44 per share, scheduled for payment on November 21, 2023. Shareholders on record as of November 7, 2023 will receive this dividend. This payment represents an annualized dividend of $1.76 and a yield of 1.1%. J.B. Hunt’s dividend payout ratio currently stands at 30.50%.

Insider trading activity has also been notable, with Executive Vice President Darren P. Field selling 6,500 shares on October 29, 2023, at an average price of $169.00, totaling $1.1 million. Following this sale, Field holds 12,976 shares valued at approximately $2.19 million. In contrast, Executive Vice President Eric McGee purchased 1,148 shares at an average price of $140.76 on August 4, 2023, increasing his holdings by 18.37%.

Analyst sentiment surrounding J.B. Hunt remains cautiously optimistic. Recent reports from various financial institutions have adjusted their price targets. Morgan Stanley raised its price objective from $145.00 to $150.00, while Barclays made a similar adjustment. Meanwhile, Stephens and JPMorgan Chase & Co. both issued price targets of $180.00 and $176.00, respectively. Currently, the stock holds a consensus rating of “Moderate Buy” with an average price target of $166.30.

J.B. Hunt Transport Services, Inc. provides an array of surface transportation, delivery, and logistics services across the United States, operating through five segments: Intermodal, Dedicated Contract Services, Integrated Capacity Solutions, Final Mile Services, and Truckload.