Landstar System Inc (NASDAQ:LSTR), a leader in the trucking industry, has announced a special cash dividend for its shareholders. The company's Board of Directors declared a special dividend of $2.00 per share, payable to stockholders of record as of the close of business on January 7, 2025. The dividend is scheduled to be distributed on or about January 21, 2025.
According to InvestingPro data, Landstar has maintained dividend payments for 20 consecutive years and has raised its dividend for 5 consecutive years, demonstrating a strong commitment to shareholder returns.
This financial event was made public through a Form 8-K filing with the U.S. Securities and Exchange Commission, detailing that the Jacksonville-based company will be rewarding its shareholders in the new year. The move by Landstar reflects a distribution of profits back to its shareholders, supported by the company's strong financial position. InvestingPro analysis shows that Landstar holds more cash than debt on its balance sheet and maintains a healthy current ratio of 2.21, indicating robust liquidity.
Landstar, which operates under the Standard Industrial Classification code for "Trucking (No Local)" [4213], has its organizational name listed as "01 Energy & Transportation." The company, incorporated in Delaware, has its fiscal year ending on December 30.
Landstar's commitment to return value to its shareholders through this special dividend will likely be well-received in the market, as it directly benefits the investors. The company's stock, traded on the NASDAQ under the ticker LSTR, may see investor interest as the payment date approaches.
In other recent news, Landstar System Inc. has announced key changes to its leadership team and revealed its financial performance for the third quarter. Joseph J. Beacom has been appointed as President of Landstar System Holdings, Inc., and Matthew Miller has been promoted to Vice President and Chief Safety and Operations Officer.
These executive changes are part of Landstar's ongoing efforts to prepare for future growth. The company reported third-quarter earnings per share of $1.41, slightly below the consensus estimate of $1.45, with total revenues of $1.218 billion. Landstar anticipates fourth-quarter revenue to be between $1.15 billion and $1.25 billion.
Recent analyst notes reveal that Raymond (NS:RYMD) James has downgraded Landstar's stock from an Outperform rating to Market Perform due to high valuation and cost concerns. However, the firm recognized Landstar's highly variable cost base and cash-generative capabilities. On the other hand, Stifel, a financial services firm, raised its price target for Landstar by 2.5% to $164.00, acknowledging the company's resilience amidst challenging market conditions.
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