JBHT

J.B. Hunt($JBHT) EVP Buys $400,000 in Shares Over Two Days as Stock Plunges 30% Amid Trade War Fallout

04/28/2025 10:17

A top executive at J.B. Hunt Transport Services ($JBHT) has made significant stock purchases amid a steep decline in the company's share price, a notable move as the U.S. transportation industry struggles with tariff shocks and recession fears. According to SEC filings, Nicholas Hobbs, Executive Vice President at J.B. Hunt, purchased a total of 3,038 shares on consecutive days in late April. On April 23, he acquired 1,529 shares at $130.75 per share (approximately $199,909), followed by another 1,509 shares at $132.43 per share (approximately $199,837) on April 24. These purchases came as $JBHT shares approached their 52-week lows. Prior to these purchases, $JBHT stock had been in a sharp downtrend since early April 2025. The stock plummeted more than 11% in a single day on April 3 and reached as low as $124.73 on April 16, marking its lowest level since early 2024 and representing a decline of over 30% year-to-date. Hobbs' purchases stand in contrast to the selling pattern seen among J.B. Hunt insiders in recent months. From late 2024 through March 2025, several executives, including President Shelley Simpson and EVP Darren P. Field, had been consistently selling shares. However, there was another significant insider buy in February 2025 when director James L. Robo purchased 59,447 shares worth approximately $9.98 million. The timing of Hobbs' purchases is particularly interesting as they came shortly after the Trump administration announced a staggering 104% tariff on imports from China, which hit the logistics and transportation sector particularly hard. The tariff policy announcement in early April sent shockwaves through the U.S. stock market, with the Dow Jones Transportation Average falling more than 17% from its November peak. Industry experts have expressed concern that these tariffs will significantly impact cross-border transportation. These external pressures have also affected J.B. Hunt's recent financial performance. The company reported its Q1 2025 earnings on April 15, posting adjusted earnings of $1.17 per share, down from $1.22 in the same period last year. Revenue decreased by 0.8% to $2.92 billion, slightly exceeding analyst expectations of $2.90 billion. While the company's core intermodal segment grew by 8%, its dedicated services segment declined by 4%, and integrated capacity solutions fell by 6%. The overall profitability decline has been attributed to rising operational costs and weakening freight demand. Deutsche Bank recently initiated coverage on J.B. Hunt with a 'hold' rating and a price target of $167, suggesting approximately 28% upside from current levels. On average, analysts maintain a 'buy' rating on $JBHT with a median price target of $168. Industry observers note that prospects for a recovery in U.S. trucking in 2025 are being impeded by the trade war. According to an industry report released on April 24, Trump's trade policies mean volumes and rates in 2025 are expected to remain virtually flat compared to 2024. However, Hobbs' recent stock purchases could be interpreted as a signal of insider confidence that the current share price may be undervalued. Traditionally, insider buying, especially multiple purchases by senior executives in a short period, often indicates a positive outlook for the stock price. Investors should watch $JBHT's movement in the coming weeks, as well as activity from other insiders. If additional insider purchases follow, it could be a stronger signal that the stock has bottomed or entered a recovery phase. Various transportation-related economic indicators and April trade volume data, expected in mid-May, will also provide important insights into the company's near-term outlook.

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