In a recent SEC filing, Haley John J, a director at Maximus, Inc. (NYSE:MMS), reported the purchase of 3,490 shares of common stock. The shares were acquired at a weighted average price of $71.76 per share, with the total transaction valued at approximately $250,442. The purchase comes as the stock trades near its 52-week low of $70.00, with InvestingPro analysis indicating the stock is currently undervalued. Following this purchase, Haley's direct ownership in the company increased to 113,544.44 shares. The filing indicates that the shares were bought in multiple transactions, with prices ranging from $71.70 to $71.85. The timing appears strategic, as Maximus maintains a perfect Piotroski Score of 9 and trades at an attractive P/E ratio of 14, with InvestingPro offering 12 additional investment insights for this financially healthy company.
In other recent news, Maximus has reported notable developments. The company has announced a robust fiscal year 2024 performance, with an organic revenue increase of 8.8% and a record adjusted earnings per share (EPS) of $6.11. Free cash flow also saw a significant rise, reaching over $400 million.
Maximus has also expanded its stock repurchase program by $200 million, a move that follows the completion of the previous $200 million stock buyback authorization. The company's CEO, Bruce Caswell, stated that this decision reflects their confidence in Maximus's future.
In a significant shift, Maximus has dismissed Ernst & Young LLP as its independent registered public accounting firm and appointed KPMG LLP to take over auditing responsibilities for the fiscal year ending September 30, 2025. This change is contingent on the signing of an engagement letter and KPMG's standard client acceptance procedures.
However, Maximus's contract with the U.S. Department of Health and Human Services, Centers for Medicare and Medicaid Services (CMS) for Contact Center Operations was cancelled. This contract was intended for services that Maximus is currently contracted to provide, with option periods extending up to 2031.
Looking ahead, Maximus is projecting fiscal 2025 revenue to be between $5.275 billion and $5.425 billion, with an adjusted EPS forecasted to be in the range of $5.70 to $6.00 per share. These recent developments are significant for investors as Maximus navigates its future financial trajectory.
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