Charles River Associates (NASDAQ:CRAI) Stock Price Down 9.6% Following Weak Earnings

Key Points

• Charles River Associates shares fell about 9.6% intraday to roughly $138 after reporting EPS $1.99 (missed consensus $2.02 by $0.03) while revenue beat at $200.98 million.
• Wall Street sentiment is mixed but the stock carries a consensus "Moderate Buy" rating with an average price target of $245, and it trades at a P/E of ~17.1 with a market cap near $885.7M.
• The company pays a quarterly dividend of $0.57 (annualized $2.28, ~1.7% yield); an EVP sold 2,250 shares recently, and institutional investors own about 84% of the stock.

Charles River Associates (NASDAQ:CRAI - Get Free Report)'s stock price traded down 9.6% during mid-day trading on Thursday following a dissappointing earnings announcement. The stock traded as low as $138.30 and last traded at $138.0460. 36,648 shares changed hands during trading, a decline of 78% from the average session volume of 166,774 shares. The stock had previously closed at $152.64.

The business services provider reported $1.99 earnings per share for the quarter, missing the consensus estimate of $2.02 by ($0.03). The company had revenue of $200.98 million during the quarter, compared to the consensus estimate 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 business also recently disclosed a quarterly dividend, which was paid on Friday, March 20th. Stockholders of record on Tuesday, March 10th were given a $0.57 dividend. The ex-dividend date of this dividend was Tuesday, March 10th. This represents a $2.28 annualized dividend and a dividend yield of 1.7%. Charles River Associates's dividend payout ratio is presently 28.04%.

Wall Street Analyst Weigh In

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

Insider Buying and Selling

In other Charles River Associates news, EVP Jonathan D. Yellin sold 2,250 shares of the firm's stock in a transaction dated Thursday, March 5th. The shares were sold at an average price of $182.27, for a total value of $410,107.50. Following the transaction, the executive vice president directly owned 14,046 shares of the company's stock, valued at $2,560,164.42. This trade represents a 13.81% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 4.50% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Charles River Associates

A number of hedge funds have recently made changes to their positions in the stock. SG Americas Securities LLC boosted its stake in shares of Charles River Associates by 86.6% in the 1st quarter. SG Americas Securities LLC now owns 105,339 shares of the business services provider's stock valued at $17,052,000 after purchasing an additional 48,892 shares in the last quarter. Russell Investments Group Ltd. boosted its stake in shares of 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. Kennedy Capital Management LLC boosted its stake in shares of Charles River Associates by 1.2% in 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 purchasing an additional 79 shares in the last quarter. Entropy Technologies LP acquired a new stake in shares of Charles River Associates in the 4th quarter valued at approximately $401,000. Finally, Arkadios Wealth Advisors boosted its stake in shares of Charles River Associates by 3.1% in the 4th quarter. Arkadios Wealth Advisors now owns 4,388 shares of the business services provider's stock valued at $881,000 after purchasing an additional 134 shares in the last quarter. 84.13% of the stock is currently owned by institutional investors and hedge funds.

Charles River Associates Trading Down 10.2%

The business's 50 day moving average price is $162.16 and its two-hundred day moving average price is $180.30. The company has a market capitalization of $885.65 million, a price-to-earnings ratio of 17.11, a P/E/G ratio of 1.20 and a beta of 0.75.

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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