Charles River Associates (NASDAQ:CRAI) Hits New 1-Year Low After Earnings Miss

Key Points

• New 52-week low after earnings miss: CRAI dropped to as low as $135.22 (last $139.12) after reporting Q1 EPS of $1.99 vs. the $2.02 consensus, even though revenue beat at $200.98 million.
• Dividend announced: The company declared a $0.57 quarterly dividend (annualized $2.28) with an ex-dividend/record date of May 26 and a pay date of June 12, implying a 1.6% yield.
• Analyst outlook: Ratings are mixed but MarketBeat shows a "Moderate Buy" consensus and a $245 price target, significantly higher than the current trading level.

Charles River Associates (NASDAQ:CRAI - Get Free Report)'s stock price reached a new 52-week low on Friday following a weaker than expected earnings announcement. The stock traded as low as $135.22 and last traded at $139.12, with a volume of 230754 shares. The stock had previously closed at $152.64.

The business services provider reported $1.99 EPS for the quarter, missing the consensus estimate of $2.02 by ($0.03). The business had revenue of $200.98 million during the quarter, compared to analysts' expectations of $193.81 million. Charles River Associates had a net margin of 7.29% and a return on equity of 26.15%.

Charles River Associates Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 12th. Investors of record on Tuesday, May 26th will be issued a $0.57 dividend. This represents a $2.28 annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend is Tuesday, May 26th. Charles River Associates's dividend payout ratio is 28.04%.

Wall Street Analysts Forecast Growth

Several research firms recently commented on CRAI. Barrington Research reissued an "outperform" rating and issued a $245.00 target price on shares of Charles River Associates in a report on Monday, March 2nd. Weiss Ratings lowered Charles River Associates from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, April 24th. One equities research analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $245.00.

Insider Transactions at Charles River Associates

In other Charles River Associates news, EVP Jonathan D. Yellin sold 2,250 shares of the company's stock in a transaction on Thursday, March 5th. The shares were sold at an average price of $182.27, for a total value of $410,107.50. Following the completion of the transaction, the executive vice president owned 14,046 shares in the company, valued at $2,560,164.42. This represents a 13.81% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. 4.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Charles River Associates

Several large investors have recently bought and sold shares of CRAI. Jones Financial Companies Lllp acquired a new position in Charles River Associates in the first quarter valued at $27,000. BNP Paribas Financial Markets boosted its stake in Charles River Associates by 243.8% in the second quarter. BNP Paribas Financial Markets now owns 11,511 shares of the business services provider's stock valued at $2,157,000 after acquiring an additional 8,163 shares in the last quarter. Lazard Asset Management LLC acquired a new position in Charles River Associates in the second quarter valued at $1,424,000. New York State Common Retirement Fund boosted its stake in Charles River Associates by 154.3% in the third quarter. New York State Common Retirement Fund now owns 5,995 shares of the business services provider's stock valued at $1,250,000 after acquiring an additional 3,638 shares in the last quarter. Finally, Quantbot Technologies LP boosted its stake in Charles River Associates by 2.6% in the third quarter. Quantbot Technologies LP now owns 7,675 shares of the business services provider's stock valued at $1,600,000 after acquiring an additional 193 shares in the last quarter. Institutional investors and hedge funds own 84.13% of the company's stock.

Charles River Associates Price Performance

The company has a market cap of $898.72 million, a price-to-earnings ratio of 17.11, a P/E/G ratio of 1.13 and a beta of 0.75. The firm's 50 day simple moving average is $161.81 and its 200-day simple moving average is $180.00.

About Charles River Associates

Charles River Associates NASDAQ: CRAI is a global consulting firm specializing in economic, financial and management advisory services. Founded in 1965 and headquartered in Boston, Massachusetts, the company provides expert analysis to support litigation, regulatory proceedings, and strategic decision-making. Its multidisciplinary teams draw on academic rigor and industry experience to deliver quantitative and qualitative insights tailored to clients' needs.

The firm's service offerings include competition economics, antitrust and merger analysis, intellectual property valuation and damages assessment, and risk management.

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