Charles River Associates (NASDAQ:CRAI) Stock Jumps 5.2% - What's Next?

Key Points

• Charles River Associates shares rose 5.2% to about $172.64, although trading volume was 39% below the average session level.
• Analysts maintain a “Moderate Buy” consensus with a $245 target price; the company recently exceeded quarterly EPS and revenue expectations.
• CRAI pays a quarterly dividend of $0.57, equivalent to a 1.3% yield, while institutional investors own 84.13% of the stock and an executive recently sold shares under a pre-arranged trading plan.

Charles River Associates (NASDAQ:CRAI - Get Free Report)'s stock price rose 5.2% on Thursday. The stock traded as high as $172.35 and last traded at $172.6390. Approximately 96,118 shares changed hands during mid-day trading, a decline of 39% from the average session volume of 157,947 shares. The stock had previously closed at $164.15.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings raised shares of Charles River Associates from a "hold (c)" rating to a "hold (c+)" rating in a research note on Friday, September 25th. One analyst has rated the stock with a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat, Charles River Associates currently has an average rating of "Moderate Buy" and a consensus target price of $245.00.

Charles River Associates Price Performance

The stock has a 50 day moving average price of $170.32 and a two-hundred day moving average price of $159.03. The firm has a market capitalization of $1.10 billion, a price-to-earnings ratio of 23.27, a PEG ratio of 1.23 and a beta of 0.65.

Charles River Associates (NASDAQ:CRAI - Get Free Report) last posted its earnings results on Thursday, August 6th. The business services provider reported $2.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.15 by $0.01. The firm had revenue of $210.81 million for the quarter, compared to analyst estimates of $198.91 million. Charles River Associates had a return on equity of 27.31% and a net margin of 6.20%. As a group, research analysts expect that Charles River Associates will post 8.43 earnings per share for the current fiscal year.

Charles River Associates Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, September 14th. Stockholders of record on Tuesday, August 25th were paid a $0.57 dividend. The ex-dividend date of this dividend was Tuesday, August 25th. This represents a $2.28 annualized dividend and a dividend yield of 1.3%. Charles River Associates's dividend payout ratio (DPR) is presently 30.36%.

Insider Activity at Charles River Associates

In related news, EVP Jonathan Yellin sold 2,250 shares of Charles River Associates stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $173.25, for a total value of $389,812.50. Following the completion of the transaction, the executive vice president owned 11,153 shares in the company, valued at approximately $1,932,257.25. The trade was a 16.79% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 4.50% of the company's stock.

Institutional Investors Weigh In On Charles River Associates

A number of hedge funds have recently added to or reduced their stakes in CRAI. BlackRock Inc. acquired a new position in shares of Charles River Associates in the second quarter worth $91,500,000. Jupiter Topco LLC acquired a new position in Charles River Associates during the 2nd quarter worth $19,965,000. SG Americas Securities LLC increased its holdings in Charles River Associates by 86.6% during the 1st quarter. SG Americas Securities LLC now owns 105,339 shares of the business services provider's stock worth $17,052,000 after purchasing an additional 48,892 shares during the period. Rice Hall James & Associates LLC acquired a new stake in Charles River Associates in the 2nd quarter valued at about $11,066,000. Finally, BNP Paribas Financial Markets raised its position in Charles River Associates by 140.2% in the 4th quarter. BNP Paribas Financial Markets now owns 44,555 shares of the business services provider's stock valued at $8,942,000 after purchasing an additional 26,003 shares in the last quarter. 84.13% of the stock is currently owned by institutional investors and hedge funds.

About Charles River Associates

Charles River Associates NASDAQ: CRAI is a global consulting firm that provides economic, financial, and management consulting services to corporations, law firms, government agencies, and other organizations. The company supports clients on complex business, regulatory, legal, and strategic matters.

Its services include economic and competition analysis, antitrust and merger-related consulting, litigation support, regulatory and public policy advice, financial and valuation analysis, and business strategy.

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