Negative Insider Profile

First Call/Thomson Financial Insiders' Chronicle, August 27, 2001

Despite a soft freight environment, J.B. Hunt Transport Services Inc. exceeded the 2Q earnings consensus by a significant margin. Unfortunately, the impressive results were due in large part to company-specific cost management and a lower-than-expected tax rate, not improving economic conditions.

But while a turnaround for the industry is expected for early 2002, analysts aren't in agreement on the stock's prospects. Some consider the issue fairly priced, while others insist J.B Hunt has additional room to run once conditions improve. At the same time, at least one analyst feels the stock is overvalued and should trade at a discount to its peers when adjusting its earnings by the group's average tax rate.

The recent insider activity tends to support the latter view, as several insiders have reversed course from previous transactions to take profits into the stock's recent rally.

From July 18 to July 31, twelve insiders sold 315,482 shares at prices ranging from $23.52 to $25.25 per share.

Insiders last sold en mass at J.B. Hunt in mid-'98, just ahead of a precipitous 65% fall over the course of a few months. The recent round of sales is not only the first at the company in three years, but a majority of the sellers also reversed course from previous acquisitions.

In fact, insiders acquired the stock just this past May; however, CEO J. Kirk Thompson and another acquirer have already locked in gains of 3O%. In addition, the company's chief financial officer made his largest sale to date while J.B. Hunt himself showed a change in sentiment with his first sale in more than five years. J.B. Hunt Transport Services is a transportation services and logistics company.

Insider                                         Shares
Chairman Wayne Garrison                         40,000
Reversal: purchased shares in Aug/Sept. '99.
Last sold in Jul. '98, just prior to a
three-month, 65% plunge.
Senior Chairman J.B. Hunt                      116,063
Reversal: purchased shares between Sept. '98
and June '00.
Last sold shares in Apr. '96, before a steady
30% drop.
CFO, EVP, Finance & Admin. Jerry Walton         13,500
Largest sale since becoming a filer in '97.
Only other sale occurred in Jun. '98, prior
to 65% drop.
COO, EVP, Operations A. Craig Harper            35,371
First sale since becoming a filer in '97.
Reversal: accumulated shares over the course
of '97 and '98.
Pres., CEO J. Kirk Thompson                     20,785
Timing: sold in July '98 prior to 65% fall
and in May '99, before a steady 45%,
ten-month drop.
Reversal: exercised options and held in
May '01.
EVP Robert Logan                                27,000
First sale since becoming a filer in '97.
Reversal: last purchased shares in Dec. '99.

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