BOSTON-Paul A. Maleh, President and CEO of CRA International Inc. (NASDAQ:), has sold a significant portion of its shares in the company, according to a new filing with the Securities and Exchange Commission. On November 14, Maleh made several transactions involving the sale of CRA International common stock.
The transaction, which was conducted pursuant to a prescribed Rule 10b5-1 trading plan, involved the sale of a total of 7,285 shares. The shares were traded at prices ranging from $189.03 to $198.75 per share, resulting in a total transaction value of approximately $1.44 million.
After the transaction, Maleh continued to hold 151,712 shares of CRA International. The sale was made in multiple trades on the same day, with each transaction priced within a specified range, as detailed in the company’s Form 4 filing.
These transactions are part of Maleh’s investment portfolio management and are conducted in compliance with SEC regulations. The sale reflects Maleh’s strategic financial planning, as he remains an important shareholder in the company.
In other recent news, Charles River Associates (CRA) has reported record third quarter revenue, increasing 13.7% from last year to $167.7 million. The company also saw more than 50% growth in non-GAAP net income, earnings per share, and EBITDA, indicating strong increases in profitability metrics. Despite a slight decrease in the number of head consultants, the company’s use of consultants has increased to 76%.
In terms of future expectations, CRA has reaffirmed its 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, especially in the area of ​​law and regulation.
However, it should be noted that the number of consultant heads decreased by 3.6% annually, and Days of Outstanding Sales (DSO) increased to 122 days. Despite these challenges, seven practices reported year-over-year revenue increases, with Antitrust & Competition Economics increasing by nearly 30%, and legal and regulatory services increasing revenue by nearly 20%. These recent developments indicate solid financial performance and a positive outlook for CRA.
InvestingPro Insights
Paul A. Again the new sale of CRA International Shares comes at a time when the company’s shares have shown excellent performance. According to InvestingPro data, CRA International has returned an impressive total of 100.12% over the past year, significantly outperforming the broader market index. This impressive gain has also influenced Maleh’s decision to realize some profits while maintaining substantial shares in the company.
Despite recent share sales by the CEO, CRA International continues to demonstrate strong financial health. The company’s revenue growth of 10.74% over the past twelve months, coupled with EBITDA of 15.59%, indicates solid operational performance. These metrics show that the company’s business fundamentals remain solid, which can reassure investors about CRA International’s long-term prospects.
InvestingPro Tips highlights that CRA International has raised its dividend for 9 consecutive years, reflecting its commitment to generating value for shareholders. This consistent dividend growth, combined with the company’s profitability over the last twelve months, reflects its financial stability and shareholder-friendly policies.
It is worth noting that while the stock has undergone significant changes, it is currently trading at a high P/E ratio of 29.74, which may be considered high relative to its short-term earnings growth potential. This valuation metric can be a factor that investors should consider when evaluating current stock price levels.
For readers interested in a more complete analysis, InvestingPro offers 11 additional tips for CRA International, providing deeper insight into the company’s financial position and market performance.
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