Huron boosts share buyback program to $700 million

Huron Consulting Group Inc. (NASDAQ:HURN), currently valued at $2.41 billion, announced today an increase in its share repurchase program, now authorizing a total of $700 million in buybacks. This represents a $200 million rise from the previous amount. The Board of Directors also extended the program’s duration, allowing stock repurchases until December 31, 2026. According to InvestingPro data, management has been consistently aggressive with share buybacks, while maintaining a moderate debt level with a debt-to-equity ratio of 0.71.

The decision to enhance the buyback initiative was made by Huron’s Board on March 14, 2025. The company stated that the timing and volume of share repurchases would be subject to management’s discretion, influenced by factors such as the company’s stock price, borrowing capacity, market conditions, and legal requirements. Huron made it clear that the program could be paused, altered, or terminated at any point, and there is no commitment to repurchase a specific number or value of shares. The company’s strong financial position is reflected in its "GREAT" Financial Health Score from InvestingPro, with impressive revenue growth of 9.11% in the last twelve months.

This strategic move is part of the management consulting services provider’s capital allocation strategy, aimed at delivering value to its shareholders. Buyback programs like this are often seen as a sign of confidence by a company in its financial health and future prospects, as it returns capital to shareholders and can potentially increase earnings per share by reducing the number of shares outstanding.

Investors should note that while share repurchases can have a positive effect on the stock price due to the reduced supply of shares and increased demand, the actual impact will depend on various market forces and company performance.

The information presented in this article is based on a press release statement from Huron Consulting Group Inc. and does not include any speculative insights or analysis.

In other recent news, Huron Consulting Group reported impressive fourth-quarter 2024 results, with earnings per share (EPS) of $1.90, surpassing analyst expectations of $1.52. The company’s revenue for the quarter reached $399.31 million, exceeding the consensus estimate of $379.99 million. For the full year 2024, Huron achieved record revenues of $1.49 billion, marking a 9.1% increase from 2023, and net income rose significantly to $116.6 million. Looking ahead, Huron provided guidance for 2025 with projected revenues between $1.58 billion and $1.66 billion and an EPS range of $6.80 to $7.60, aligning closely with analyst estimates.

Benchmark and Truist Securities have both raised their price targets for Huron Consulting to $165, maintaining a Buy rating. Analysts from these firms highlighted Huron’s strong performance and potential growth in the healthcare sector, driven by changes in clinical reimbursement models and regulatory policies. Truist Securities has also increased its adjusted EPS estimate for Huron to $8.28 for 2026, reflecting confidence in the company’s growth prospects. Additionally, Huron has scheduled an Investor Day on March 25, 2025, to discuss its strategic plans and financial objectives further.

These developments follow a year of significant achievements for Huron, including being recognized as a "Best Place to Work" by Glassdoor and U.S. News & World Report. The company also returned $122.2 million to shareholders through share repurchases and reported a substantial increase in free cash flow. Huron’s strategic acquisitions and focus on digital and managed services have strengthened its market position, despite challenges in the healthcare and education sectors.

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