Rush Enterprises (NASDAQ:RUSHA) CEO Sells 71,574 Shares of Stock

Key Points

• CEO William Rusty Rush sold 71,574 shares at an average price of $81.05, generating approximately $5.8 million and reducing his direct ownership by 29.13%.
• Rush Enterprises shares traded near $80.96 and are scheduled for a 3-for-2 stock split on August 11, with shares distributed after the August 10 market close.
• The company exceeded quarterly expectations, reporting $0.91 in earnings per share on $1.90 billion in revenue, while analysts maintain a “Moderate Buy” consensus and an average price target of $87.

Rush Enterprises, Inc. (NASDAQ:RUSHA - Get Free Report) CEO William Rusty Rush sold 71,574 shares of the stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $81.05, for a total transaction of $5,801,072.70. Following the sale, the chief executive officer directly owned 174,154 shares in the company, valued at approximately $14,115,181.70. The trade was a 29.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website.

Rush Enterprises Price Performance

Shares of NASDAQ:RUSHA traded up $1.17 during trading on Monday, reaching $80.96. 574,250 shares of the company's stock traded hands, compared to its average volume of 490,922. The company has a quick ratio of 0.38, a current ratio of 1.45 and a debt-to-equity ratio of 0.16. Rush Enterprises, Inc. has a fifty-two week low of $45.67 and a fifty-two week high of $83.50. The company has a 50-day simple moving average of $72.57 and a 200-day simple moving average of $69.96. The firm has a market cap of $6.29 billion, a PE ratio of 24.39, a P/E/G ratio of 1.77 and a beta of 0.87.

Rush Enterprises shares are going to split on the morning of Tuesday, August 11th. The 3-2 split was recently announced. The newly created shares will be distributed to shareholders after the closing bell on Monday, August 10th.

Rush Enterprises (NASDAQ:RUSHA - Get Free Report) last released its quarterly earnings results on Tuesday, July 28th. The company reported $0.91 earnings per share for the quarter, topping analysts' consensus estimates of $0.86 by $0.05. The company had revenue of $1.90 billion during the quarter, compared to analysts' expectations of $1.89 billion. Rush Enterprises had a return on equity of 11.65% and a net margin of 3.67%. As a group, analysts predict that Rush Enterprises, Inc. will post 3.75 earnings per share for the current year.

Rush Enterprises Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Wednesday, September 9th will be paid a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend is Wednesday, September 9th. Rush Enterprises's dividend payout ratio is presently 22.89%.

Wall Street Analyst Weigh In

RUSHA has been the topic of a number of research analyst reports. Wolfe Research assumed coverage on shares of Rush Enterprises in a research note on Monday, April 27th. They issued an "outperform" rating and a $88.00 price target on the stock. Stephens increased their price objective on shares of Rush Enterprises from $90.00 to $95.00 and gave the company an "overweight" rating in a report on Thursday. Zacks Research upgraded shares of Rush Enterprises from a "strong sell" rating to a "hold" rating in a research report on Monday, June 29th. Weiss Ratings raised shares of Rush Enterprises from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, July 23rd. Finally, Wall Street Zen cut shares of Rush Enterprises from a "buy" rating to a "hold" rating in a research note on Sunday, June 14th. Three equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $87.00.

Institutional Trading of Rush Enterprises

Several large investors have recently made changes to their positions in the company. Root Financial Partners LLC raised its stake in Rush Enterprises by 75.4% in the 1st quarter. Root Financial Partners LLC now owns 407 shares of the company's stock valued at $27,000 after purchasing an additional 175 shares during the last quarter. CIBC Private Wealth Group LLC boosted its stake in Rush Enterprises by 495.4% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 518 shares of the company's stock worth $28,000 after purchasing an additional 431 shares during the last quarter. Private Trust Co. NA grew its holdings in shares of Rush Enterprises by 211.4% during the fourth quarter. Private Trust Co. NA now owns 545 shares of the company's stock worth $29,000 after buying an additional 370 shares in the last quarter. Measured Wealth Private Client Group LLC purchased a new stake in shares of Rush Enterprises during the third quarter worth $34,000. Finally, Allworth Financial LP raised its position in shares of Rush Enterprises by 5,790.9% in the third quarter. Allworth Financial LP now owns 648 shares of the company's stock valued at $35,000 after buying an additional 637 shares during the last quarter. 84.43% of the stock is currently owned by hedge funds and other institutional investors.

Rush Enterprises Company Profile

Rush Enterprises, Inc, headquartered in New Braunfels, Texas, is a leading distributor of commercial vehicles and related products in the United States. Through its Rush Truck Centers subsidiary, the company sells new and used medium- and heavy-duty trucks, buses and specialty vehicles, while also offering factory-authorized parts, collision repair, maintenance and warranty support across its network of dealerships.

Founded in 1965, Rush Enterprises has grown to encompass more than 150 locations in over 20 states, partnering with major manufacturers including Kenworth, Peterbilt, Freightliner, Volvo and Mack.

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