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Huron Consulting Group - AI Stock Analysis

Analysis generated September 23, 2024

Huron Consulting Group is a global professional services firm that provides extensive consultative services to a variety of industries, including healthcare, higher education, life sciences, and commercial sectors. The company aims to help clients drive growth, enhance business performance, and elevate their capabilities through strategic headway and execution. Huron’s expertise ranges from organizational development to technology integration, making it a crucial player in the consultancy sphere.

Fundamental Analysis

For the last quarter, Huron Consulting Group reported $363 million in revenue. This represents a quarterly increase of 3.82% and a year-over-year increment of 11.34%. Such growth is a positive sign, indicating the company's sustained ability to generate higher revenues.

Net income for the last quarter was $18 million, showing a robust increase of 535.81% quarter-over-quarter and a 34.18% rise year-over-year. This substantial improvement signals effective cost management and profitability.

However, EBITDA for the last quarter was $26 million, which is down 28.36% compared to the previous quarter. Despite this, the year-over-year growth of 4.39% suggests that the company has been able to maintain long-term earnings before interest, taxes, depreciation, and amortization.

The current P/E ratio stands at 26.32. Generally, a high P/E ratio suggests that the stock might be overvalued, raising concerns of a bearish outlook.

On a less positive note, insider selling has been observed in the past few months, which can often be a negative indicator, hinting that those closest to the company's operations may foresee potential issues ahead.

Technical Analysis

The current stock price for Huron Consulting Group is $110.55, which reflects a 2.70% increase compared to a month ago and an 8.16% rise year-over-year. Both short-term and long-term trends appear positive.

The 10-day Simple Moving Average (SMA10) is 108.83, slightly higher than the previous SMA10 of 108.52. This incremental rise suggests a potential upward trend in the stock price.

The Relative Strength Index (RSI) is 52.2, indicating a neutral condition. An RSI within 30-70 reflects a balanced demand-supply scenario for the stock, with no immediate risks of overbought or oversold conditions.

Alternative Data Analysis

Huron Consulting Group has been showing positive signs in terms of job postings and employee sentiment. Currently, there are 175 open positions, which is a 7% increase in the last couple of months. This growth in job postings indicates a tendency towards expansion and a healthy future outlook.

In the customer acquisition domain, Huron's website has seen an estimated 85,000 visitors recently, up by 25%. This uptrend in web traffic could signify a potential increase in customer interest and engagement.

On social media, Huron Consulting Group has 950 followers on Instagram and 3,700 followers on Twitter. The number of Instagram followers has increased by 7%, indicating a rising interest online. However, the number of Twitter followers has remained static.

Notably, Huron Consulting Group holds an AI score of 78 from AltIndex, suggesting a ‘buy’ signal based on combined fundamental, technical, and alternative data analyses.

Conclusion and Recommendation

Huron Consulting Group showcases several positive indicators across fundamental, technical, and alternative data analyses. The consistent revenue and net income growth, coupled with an upward trend in stock price and web traffic, suggest good potential for investors. However, the decrease in EBITDA and instances of insider selling introduce some level of caution.

Considering the overall data, Huron Consulting Group appears to be a solid investment opportunity with a cautiously optimistic outlook. The relatively high P/E ratio and insider selling are concerns that should be monitored. Still, the comprehensive growth trends suggest it can be a good addition to a diversified portfolio.

Recommendation: **Buy**

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.