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J.B. Hunt sets quarterly dividend at $0.43 per share

Published 17/10/2024, 18:38
JBHT
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LOWELL, Ark. - J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT), a prominent player in the North American transportation industry, has declared a quarterly dividend of $0.43 per common share. Stockholders on record as of November 8, 2024, will be eligible for the dividend, which is scheduled for distribution on November 22, 2024.

The announcement reflects the company's ongoing commitment to shareholder returns. J.B. Hunt is known for its comprehensive transportation services, which include intermodal, dedicated, refrigerated, truckload, less-than-truckload, and more. The company emphasizes its mode-neutral approach to offer efficient, cost-effective, and transparent logistics solutions to its customers.

J.B. Hunt's strategic investments in technology, capacity, and its workforce have been integral to its growth and service offerings. The company operates one of the largest company-owned fleets in the United States and manages third-party carrier capacity through its J.B. Hunt 360° digital freight platform.

As a Fortune 500 entity and an S&P 500 company, J.B. Hunt is also part of the Dow Jones Transportation Average. Its stock is publicly traded on the NASDAQ exchange, where it is listed under the ticker symbol JBHT.

This dividend declaration is based on a press release statement from the company and is a routine component of J.B. Hunt's financial practices, aimed at providing value to its stakeholders. The information reflects the company's current financial position and its ability to return capital to shareholders while maintaining its operations and growth initiatives.

In other recent news, J.B. Hunt Transport Services reported mixed results for the third quarter. Despite a 3% decline in revenue, a 7% drop in operating income, and a 17% decrease in diluted earnings per share, the company saw a 5% year-over-year increase in intermodal volumes. CFRA downgraded J.B. Hunt's stock rating to Sell and lowered the price target from $174 to $151, citing concerns about the company's ability to expand margins due to rising costs and heightened competition.

In contrast, Stifel financial firm raised its price target for J.B. Hunt to $167, maintaining a Hold rating, while Baird reaffirmed its Outperform rating with a price target of $205. Both firms acknowledged the company's recent performance, which surpassed market expectations despite a challenging operational environment.

J.B. Hunt also revised its capital expenditures for 2024 down to $625 million and repurchased approximately $200 million in stock. The company expects new account gross sales to be within the annual range of 1,000 to 1,200 trucks and anticipates operating income growth to lag behind fleet growth. These are the recent developments for J.B. Hunt Transport Services.

InvestingPro Insights

J.B. Hunt Transport Services' recent dividend declaration aligns with its strong track record of shareholder returns. According to InvestingPro data, the company boasts a dividend yield of 0.95% and has impressively raised its dividend for 10 consecutive years. This consistency in dividend growth, coupled with the company's 21-year streak of maintaining dividend payments, underscores J.B. Hunt's commitment to rewarding its investors.

The company's financial health appears robust, with a market capitalization of $17.42 billion and revenues of $12.24 billion over the last twelve months as of Q3 2024. Despite a challenging economic environment, J.B. Hunt has managed to remain profitable, as noted in one of the InvestingPro Tips. This profitability is reflected in its adjusted earnings per share of $5.50 for the same period.

While J.B. Hunt's P/E ratio of 31.11 suggests it's trading at a premium compared to some industry peers, this could be justified by the company's strong market position and consistent performance. The significant 8.58% return over the last week, highlighted by InvestingPro, indicates recent positive investor sentiment towards the stock.

For investors seeking a deeper understanding of J.B. Hunt's financial outlook, InvestingPro offers additional insights. The platform provides 8 more tips that could shed light on the company's growth prospects, debt management, and overall financial health. These additional tips could be particularly valuable for investors analyzing the sustainability of J.B. Hunt's dividend policy and its potential for future growth in the competitive transportation sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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