William "Rusty" Rush, CEO, President, and Chairman of the Board at Rush Enterprises Inc (NASDAQ:RUSHA), sold a significant portion of his holdings in the company. According to a recent SEC filing, Rush sold a total of 117,500 shares of Class A common stock at an average price of $63.9771, amounting to approximately $7.5 million.
The transactions took place on November 6, 2024, and included multiple trades executed at prices ranging from $63.75 to $64.3650. This sale follows a series of option exercises where Rush acquired 117,500 shares at prices between $7.84 and $12.04, totaling approximately $1.08 million.
Following these transactions, Rush maintains direct ownership of 174,154.50 shares of Class A common stock and indirect ownership through 3MR Partners, L.P., which includes over 6.6 million shares of Class B common stock and 6,184.50 shares of Class A common stock.
In other recent news, Rush Enterprises has reported strong third-quarter results, surpassing analyst expectations. The company reported revenues of $1.9 billion and a net income of $79.1 million, with an adjusted earnings per share of $1.00 after accounting for a one-time charge related to Hurricane Helene. Despite industry challenges, Rush Enterprises sold 3,604 new Class 8 trucks, capturing 5.3% of the U.S. market, and saw a slight increase in used truck sales.
However, parts service and body shop revenues experienced a 1.6% decline from the previous year. Stephens has raised the price target on Rush Enterprises to $69 from $66, maintaining an Overweight rating on the stock. This comes in light of the company's performance and its strong free cash flow generation.
The firm also anticipates that Rush Enterprises will benefit from increased pre-buy demand in 2026 due to upcoming EPA regulations set for 2027. Notably, the company recently announced the transition of Jason Wilder to COO effective December 1. These are some of the recent developments for Rush Enterprises.
InvestingPro Insights
The recent stock sale by William "Rusty" Rush comes at a time when Rush Enterprises Inc (NASDAQ:RUSHA) is experiencing strong market performance. According to InvestingPro data, the company's stock has shown impressive returns, with a 70.76% total return over the past year and a 40.81% return in the last six months. This aligns with an InvestingPro Tip indicating that RUSHA has delivered a "High return over the last year."
Despite the CEO's significant stock sale, the company's fundamentals appear solid. RUSHA's P/E ratio stands at 14.54, suggesting a reasonable valuation compared to industry peers. The company has also demonstrated profitability, with a gross profit of $1.55 billion and an operating income of $475.03 million in the last twelve months as of Q3 2024.
Another noteworthy InvestingPro Tip reveals that RUSHA "Has raised its dividend for 7 consecutive years," which may be attractive to income-focused investors. The current dividend yield is 1.14%, with a 5.88% dividend growth rate in the last twelve months.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for RUSHA, providing deeper insights into the company's performance and potential.
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