BOSTON—Paul A. Maleh, President and CEO of CRA International , Inc. (NASDAQ:CRAI), has sold a significant portion of his shares in the company, according to a recent filing with the Securities and Exchange Commission. On November 14, Maleh executed multiple transactions involving the sale of CRA International common stock.
The transactions, conducted under a pre-established Rule 10b5-1 trading plan, involved the sale of a total of 7,285 shares. The shares were sold at prices ranging from $189.03 to $198.75 per share, resulting in a total transaction value of approximately $1.44 million.
Following these transactions, Maleh continues to hold 151,712 shares of CRA International. The sales were carried out in a series of trades on the same day, with each transaction priced within specified ranges, as detailed in the company's Form 4 filing.
These transactions are part of Maleh's ongoing management of his investment portfolio and were conducted in compliance with SEC regulations. The sales reflect Maleh's strategic financial planning, as he remains a significant shareholder in the firm.
In other recent news, Charles River Associates (CRA) has reported a record third-quarter revenue, marking a significant 13.7% increase from last year to reach $167.7 million. The company also saw over 50% growth in non-GAAP net income, earnings per share, and EBITDA, indicating a robust rise in profitability metrics. Despite a slight decrease in consultant headcount, the firm's consultant utilization improved to 76%.
In terms of future expectations, CRA has reaffirmed its full-year fiscal 2024 revenue guidance of $670 million to $685 million and expects a non-GAAP EBITDA margin of 12.2% to 13.0%. The company's management remains optimistic about growth, particularly in legal and regulatory areas.
However, it's worth noting that the consultant headcount decreased by 3.6% year-over-year, and Days Sales Outstanding (DSO) increased to 122 days. Despite these challenges, seven practices reported year-over-year revenue increases, with Antitrust & Competition Economics growing nearly 30%, and legal and regulatory services seeing a nearly 20% revenue increase. These recent developments suggest a solid financial performance and a positive outlook for CRA.
InvestingPro Insights
Paul A. Maleh's recent sale of CRA International shares comes at a time when the company's stock has shown remarkable performance. According to InvestingPro data, CRA International has delivered a stunning 100.12% total return over the past year, significantly outperforming broader market indices. This impressive gain may have influenced Maleh's decision to realize some profits while maintaining a substantial stake in the company.
Despite the recent share sale by the CEO, CRA International continues to demonstrate strong financial health. The company's revenue growth of 10.74% over the last twelve months, coupled with an EBITDA growth of 15.59%, indicates robust operational performance. These metrics suggest that the company's business fundamentals remain solid, which could reassure investors about the long-term prospects of CRA International.
InvestingPro Tips highlight that CRA International has raised its dividend for 9 consecutive years, reflecting a commitment to returning value to shareholders. This consistent dividend growth, combined with the company's profitability over the last twelve months, paints a picture of financial stability and shareholder-friendly policies.
It's worth noting that while the stock has experienced a significant run-up, it is currently trading at a high P/E ratio of 29.74, which may be considered elevated relative to its near-term earnings growth potential. This valuation metric could be a factor for investors to consider when assessing the stock's current price levels.
For readers interested in a more comprehensive analysis, InvestingPro offers 11 additional tips for CRA International, providing a deeper insight into the company's financial position and market performance.
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