In a recent transaction filed with the Securities and Exchange Commission, H. Eugene Lockhart, a director at Huron Consulting Group Inc. (NASDAQ:HURN), sold 1,042 shares of the company's common stock. The shares were sold at a price of $115.82 each, amounting to a total transaction value of $120,684.
This sale was executed automatically under a Rule 10b5-1 trading plan, which Lockhart had adopted on May 9, 2024. Following this transaction, Lockhart now holds 27,798 shares of Huron Consulting Group.
Huron Consulting Group, based in Chicago, is a management consulting firm offering a wide range of services to its clients.
In other recent news, Huron Consulting Group reported a 3% revenue increase and a 21% rise in adjusted earnings per share (EPS) for its third-quarter 2024, compared to the same period in 2023. The company also achieved record sales bookings. Despite project work delays shifting revenue from the third to fourth quarter, the firm remains optimistic about its growth, particularly in its Commercial and Healthcare segments.
The company's full-year revenue before reimbursable expenses (RBR) guidance was narrowed to $1.47 billion to $1.49 billion, and the adjusted diluted EPS forecast was raised to $6.00 to $6.20. The firm expressed confidence in its growth trajectory for 2025, supported by strong sales conversion activity.
In terms of segment performance, the Healthcare and Education segments continued to grow, while the Commercial segment rebounded with a 12% sequential increase. However, the Commercial segment experienced a 3% decline in RBR year-over-year, primarily due to a decrease in financial advisory services. Despite these challenges, Huron Consulting Group remains buoyant about its prospects, driven by improvements in utilization and favorable demand. These are the recent developments for the company.
InvestingPro Insights
The recent insider sale by H. Eugene Lockhart comes at a time when Huron Consulting Group (NASDAQ:HURN) is experiencing significant market momentum. According to InvestingPro data, the company's stock has seen a substantial 36.93% price return over the past six months, with a notable 12.58% gain in just the last week. This upward trend has pushed HURN's stock price to 99.49% of its 52-week high, indicating strong investor confidence.
Despite the director's sale, there are positive signals for the company. InvestingPro Tips reveal that three analysts have revised their earnings upwards for the upcoming period, suggesting optimism about Huron's near-term financial performance. Additionally, the company's management has been aggressively buying back shares, which often signals confidence in the company's value and future prospects.
However, investors should note that HURN is trading at a high P/E ratio relative to its near-term earnings growth, with a current P/E ratio of 25.08. This valuation metric, combined with the RSI suggesting the stock is in overbought territory, may warrant careful consideration for potential investors.
For those seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Huron Consulting Group, providing deeper insights into the company's financial health and market position.
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