Charles River Associates (NASDAQ:CRAI) Shares Gap Down - Here's Why

Key Points

• Charles River Associates shares gapped down ahead of Friday’s open, falling from a prior close of $167.32 to an open of $150.13 before later trading back near $168.69.
• Analyst sentiment softened slightly after Weiss Ratings downgraded the stock from “hold (c+)” to “hold (c),” while MarketBeat still shows a consensus rating of “Moderate Buy” with a $245 average target price.
• Recent earnings were mixed: the company reported $1.99 EPS versus the $2.02 estimate, but revenue of $200.97 million beat expectations. The firm also paid a quarterly dividend of $0.57, and insiders and institutions continue to hold significant stakes.

Charles River Associates (NASDAQ:CRAI - Get Free Report)'s share price gapped down before the market opened on Friday . The stock had previously closed at $167.32, but opened at $150.13. Charles River Associates shares last traded at $168.6880, with a volume of 19,303 shares.

Wall Street Analyst Weigh In

Separately, Weiss Ratings downgraded Charles River Associates from a "hold (c+)" rating to a "hold (c)" rating in a research report on Monday, May 11th. One investment analyst has rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, Charles River Associates has a consensus rating of "Moderate Buy" and an average target price of $245.00.

Charles River Associates Trading Up 1.9%

The stock has a market capitalization of $1.10 billion, a PE ratio of 23.69, a PEG ratio of 1.24 and a beta of 0.69. The company's 50 day simple moving average is $150.47 and its 200 day simple moving average is $164.48.

Charles River Associates (NASDAQ:CRAI - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The business services provider reported $1.99 earnings per share for the quarter, missing analysts' consensus estimates of $2.02 by ($0.03). Charles River Associates had a return on equity of 26.02% and a net margin of 6.22%.The business had revenue of $200.97 million for the quarter, compared to analysts' expectations of $193.81 million. As a group, analysts predict that Charles River Associates will post 8.52 EPS for the current year.

Charles River Associates Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, June 12th. Investors of record on Tuesday, May 26th were paid a $0.57 dividend. This represents a $2.28 annualized dividend and a yield of 1.3%. The ex-dividend date was Tuesday, May 26th. Charles River Associates's dividend payout ratio is presently 31.67%.

Insiders Place Their Bets

In other Charles River Associates news, EVP Jonathan D. Yellin sold 2,250 shares of the firm's stock in a transaction dated Tuesday, May 19th. The stock was sold at an average price of $147.72, for a total value of $332,370.00. Following the sale, the executive vice president directly owned 13,247 shares of the company's stock, valued at approximately $1,956,846.84. This trade represents a 14.52% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 4.50% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of CRAI. Kennedy Capital Management LLC lifted its holdings in shares of Charles River Associates by 1.2% during the 4th quarter. Kennedy Capital Management LLC now owns 6,489 shares of the business services provider's stock valued at $1,302,000 after acquiring an additional 79 shares in the last quarter. Arkadios Wealth Advisors boosted its position in Charles River Associates by 3.1% during the 4th quarter. Arkadios Wealth Advisors now owns 4,388 shares of the business services provider's stock worth $881,000 after purchasing an additional 134 shares during the period. Jones Financial Companies Lllp acquired a new stake in Charles River Associates in the 1st quarter valued at $27,000. Russell Investments Group Ltd. increased its holdings in Charles River Associates by 8.2% in the 4th quarter. Russell Investments Group Ltd. now owns 4,180 shares of the business services provider's stock valued at $839,000 after purchasing an additional 318 shares in the last quarter. Finally, New York State Common Retirement Fund raised its position in Charles River Associates by 25.0% in the fourth quarter. New York State Common Retirement Fund now owns 7,495 shares of the business services provider's stock valued at $1,504,000 after purchasing an additional 1,500 shares during the period. Institutional investors and hedge funds own 84.13% of the company's stock.

Charles River Associates Company Profile

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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