ASGN Inc (NYSE:ASGN) CEO Theodore S. Hanson recently sold shares of the company, according to a recent SEC filing. On November 12, Hanson sold 1,200 shares at a weighted average price of $99.64, with prices ranging from $99.54 to $99.82. The following day, on November 13, he sold an additional 900 shares at an average price of $97.1165, with prices ranging from $97.00 to $97.23. These transactions amounted to a total value of $206,972.
After these sales, Hanson holds 287,955 shares indirectly through a family trust. Additionally, he owns 44,461 shares directly. These moves are part of his ongoing management of his holdings in ASGN Inc, a company specializing in services and help supply services.
In other recent news, ASGN Incorporated reported stable Q3 2024 revenues of $1.031 billion despite a slight year-over-year decrease. The company's adjusted earnings per share surpassed Wall Street's expectations, reflecting resilience amidst a challenging market. However, the fourth quarter forecast indicates a potential decrease, attributed by Truist Securities to clients delaying significant IT projects due to economic difficulties.
BMO Capital Markets raised the price target for ASGN to $96.00, maintaining a Market Perform rating. This adjustment followed ASGN's recent earnings report, which slightly exceeded both the consensus and BMO's forecasts due to stronger margins. Meanwhile, Truist Securities maintained its Buy rating on ASGN, with a continued price target of $110.00, anticipating a more favorable demand landscape in 2025.
ASGN's consulting division reported a healthy year-over-year growth of 4%, but challenges persist in its Assignment segment. The company has projected revenues between $990 million and $1.01 billion for the fourth quarter of 2024, with net income expected to be between $39.2 million and $42.1 million. Despite lower guidance for Q4, ASGN remains optimistic about future IT spending growth, especially in the AI/ML sectors.
InvestingPro Insights
While CEO Theodore S. Hanson's recent share sales might raise eyebrows, a deeper look at ASGN Inc's financial metrics and market position reveals a more nuanced picture. According to InvestingPro data, ASGN's market capitalization stands at $4.04 billion, with a P/E ratio of 23.01, suggesting a moderate valuation relative to earnings.
Interestingly, one InvestingPro Tip highlights that management has been aggressively buying back shares, which could be seen as a vote of confidence in the company's future prospects. This aggressive buyback strategy aligns with another InvestingPro Tip indicating a high shareholder yield, potentially offsetting concerns about the CEO's recent stock sales.
However, it's worth noting that ASGN's revenue growth has been negative, with a 7.47% decline in the last twelve months as of Q3 2024. This aligns with another InvestingPro Tip stating that analysts anticipate sales decline in the current year. Despite this, the company remains profitable, with a gross profit of $1.2 billion and an EBITDA of $407.6 million over the same period.
For investors seeking a more comprehensive analysis, InvestingPro offers 6 additional tips that could provide valuable insights into ASGN's financial health and future prospects. These additional tips, along with real-time metrics, can help investors make more informed decisions about their ASGN holdings.
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