J.B. Hunt Transport Companies At the moment
As of 04/17/2025 04:00 PM Jap
- 52-Week Vary
- $122.79
▼
$200.40
- Dividend Yield
- 1.36%
- P/E Ratio
- 23.24
- Worth Goal
- $162.20
J.B. Hunt’s NASDAQ: JBHT inventory share value got here beneath strain with the menace of tariffs and their financial influence and fell to a brand new low following its Q1 launch. The low was catalyzed by tepid steerage relative to analysts’ forecasts and the value goal reset it brought about. The takeaway is that JBHT analysts are impacting the value motion in Q2. Nonetheless, the market has overcorrected, falling under the vary’s low finish and providing traders a deep-value alternative on this transportation inventory.
This chance might not final lengthy as a result of the headwinds impacting sentiment in early Q2 might evaporate as shortly as they appeared.
MarketBeat tracked 5 analyst revisions throughout the first day of J.B. Hunt’s Q1 launch, 4 of which included lowered value targets. Nonetheless, the consensus of the 5 consists of a stable Purchase ranking and a forecast for 25% upside.
The only outlier is a reiterated value goal that provides $25 to the consensus of revisions and aligns with the broader consensus.
It forecasts a virtually 40% upside, however the lowest analyst value goal highlights the worth alternative. Buying and selling at $125, JBHT inventory is greater than 10% under the low goal, buying and selling at a important assist degree that limits the draw back danger. That degree aligns with highs set in 2019 and the stimulus-induced breakout the next yr.
J.B. Hunt: Enterprise Contracts in Q1 However Much less Than Anticipated
J.B. Hunt confronted headwinds in Q1, together with lowered truck counts, fewer stops, fewer complete masses, and decrease income per mile in important segments. Nonetheless, the harm was lower than feared, leaving the quarterly income at $2.92 billion, down 0.7% yearly however 70 foundation factors higher than anticipated.
Segmentally, Intermodal was strongest, with a 5% acquire pushed by quantity will increase, however weaknesses in all different segments offset the energy. Devoted Contract Companies fell by 4%, Built-in Capability Options by 6%, Trucking by 7%, and Ultimate Mile Companies by 12%.
The margin information is one other space with hidden energy. The corporate skilled margin strain, however lower than anticipated, leaving the GAAP and adjusted earnings down year-over-year however forward of forecasts. The important element is that earnings are enough to maintain the corporate’s monetary well being throughout the enterprise downturn, together with the dividend and share repurchases.
Share repurchases have been sturdy in F2024 and Q1 F2025, lowering the rely by about 4% by the top of the reporting interval. Concerning the dividend, the inventory yields about 1.4%, with shares at a multi-year low, the best ahead yield it has provided in a few years.
The stability sheet displays the enterprise slowdown and aggressive buybacks with decreased money and elevated debt, however no purple flags exist. The corporate’s optimistic money stream can maintain the enterprise, and debt leverage is low at roughly 0.25x fairness.
Institutional Exercise is Bullish for J.B. Hunt
J.B. Hunt Transport Companies Dividend Funds
- Dividend Yield
- 1.36%
- Annual Dividend
- $1.76
- Dividend Improve Observe File
- 22 Years
- Annualized 3-12 months Dividend Progress
- 13.38%
- Dividend Payout Ratio
- 31.94%
- Latest Dividend Cost
- Feb. 21
Institutional exercise, together with promoting, ramped to a multi-year excessive in Q1 2025 however is in any other case bullish for this market.
The stability of exercise is shopping for, growing possession to roughly 75% of the inventory, and offering a stable assist base for the market. Institutional shopping for will doubtless improve in tempo now that shares are at a long-term low.
The danger is that the tariff menace leads to a extra important enterprise contraction, main analysts to proceed reducing their value targets and establishments to scale back their publicity.
J.B. Hunt’s inventory value can proceed to fall. Nonetheless, the market has develop into prolonged and is nearing a important assist goal the place a rebound is probably going.
The important assist goal is close to $120 and can doubtless be reached in April.
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