Raymond (NS:RYMD) B. Ruddy, a director at Maximus, Inc. (NYSE:NYSE:MMS), recently purchased 3,490 shares of the company's common stock. The transaction, dated December 12, 2024, was valued at approximately $249,395, with each share priced at $71.46. 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 acquisition, Ruddy holds a total of 112,520.04 shares directly in the company, which boasts a perfect Piotroski Score of 9 and has maintained dividend payments for 20 consecutive years. InvestingPro subscribers have access to 10+ additional exclusive insights about Maximus, including detailed valuation metrics and financial health indicators. This transaction was documented in a Form 4 filing with the Securities and Exchange Commission.
In other recent news, Maximus has reported significant developments. The company saw a robust fiscal year in 2024, with an organic revenue increase of 8.8% and a record adjusted earnings per share (EPS) of $6.11. Free cash flow also experienced a substantial rise, reaching over $400 million, almost double the previous year's figure.
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.
On the financial side, Maximus has increased its stock repurchase program by $200 million, following the completion of the previous $200 million stock buyback authorization. The company's CEO Bruce Caswell stated that this decision aligns with the company's strategic approach to stock repurchases and reflects their confidence in the company's future.
In terms of auditing, 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. Lastly, 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.
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