Insider Buying at JB Hunt

Page 1 of 2

According to a filing with the SEC, a family trust managed by the spouse of Douglas Duncan purchased 2,600 shares of J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) on December 5th at an average price of $58.97. Duncan is a member of J.B. Hunt’s Board of Directors and so this transaction had to be disclosed as insider trading. He had already owned 11,000 shares directly. J.B. Hunt is a trucking and logistics services company, and its stock price is up 29% year to date. Duncan’s most recent buy, according to our database of insider filings, came in November 2010 at an average price of $37.20 per share. We had also seen an insider buy at J.B. Hunt in late October at roughly the same price (see a history of insider purchases at JB Hunt). Studies show that stocks bought by insiders tend to outperform the market (read more about studies on insider trading).

Revenue was up 11% in the third quarter of the year from its levels in Q3 2011. Growth was led by intermodal operations, which is responsible for about 60% of J.B. Hunt’s revenue. Earnings increased 14% as the company was well able to control costs, including salaries and wages. A similar story holds for the first half of 2012, as the first nine months of the year have shown a 12% increase in sales while net income has been up 23%. At a market capitalization of $6.9 billion, J.B. Hunt Transport Services, Inc. trades at 23 times trailing earnings. The company would have to continue growing at a good rate in order for that pricing to make sense. Wall Street analysts predict $3 in earnings per share in 2013- up from an expected $2.58 this year- implying a forward P/E of 19.

LONE PINE CAPITAL

Hedge funds generally aren’t very excited about J.B. Hunt Transport Services, Inc., with one notable exception: during the third quarter of 2012, Lone Pine Capital initiated a position of 3.8 million shares. This made J.B. Hunt one of the five largest new positions in the fund’s portfolio; Lone Pine is managed by billionaire and Tiger Cub Stephen Mandel. See more stocks Lone Pine owned.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 30 percentage points in 13 months Learn how!

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!