US school bus manufacturer Blue Bird has announced a blockbuster quarterly performance alongside a substantial new share repurchase initiative. However, this positive news arrives concurrently with a notable stock sale by the company’s own Chief Financial Officer, introducing a note of caution amidst the celebration.
Exceptional Financial Performance
The company’s fiscal third quarter of 2025 was marked by exceptional financial results. Net revenue surged by 19.4% to reach $398 million, decisively surpassing analyst forecasts. Even more impressive was the record-setting adjusted EBITDA of $58.5 million, which translates to a robust margin of 14.7%.
A significant driver of this growth was the electric bus division. Blue Bird delivered 271 zero-emission buses during the quarter, setting a new quarterly record. In light of this outstanding operational performance, management has raised its full-year guidance, now projecting an adjusted EBITDA of approximately $210 million.
Major Share Buyback Authorization
In a move that underscores its financial strength and confidence, Blue Bird’s board of directors has authorized a new $100 million stock repurchase program. Such initiatives are typically viewed favorably by the market, as they signal management’s belief that the shares are undervalued and directly return capital to shareholders, potentially boosting earnings per share.
Should investors sell immediately? Or is it worth buying Blue Bird?
CFO Capitalizes on Stock Highs
Contrasting the corporate optimism, CFO Razvan Radulescu elected to sell a portion of his holdings. The transaction, which occurred on September 2, involved 6,709 shares sold at a price of $57.41 per share, netting over $385,000. This sale reduces his direct stake in the company to 40,794 shares.
This insider selling activity comes at a time when Blue Bird’s stock has experienced a dramatic ascent, climbing 74.4% over the preceding six months. Transactions by corporate insiders are often scrutinized by investors for potential insights into the executive team’s view of the company’s valuation.
Analyst Confidence Remains Unshaken
Despite the CFO’s transaction, prominent Wall Street firms have maintained their bullish stances. Needham increased its price target from $49 to $53 while reiterating its “Buy” recommendation. Similarly, DA Davidson reaffirmed its positive rating. Both institutions cited the company’s superior operational execution and strong financial results as the foundation for their continued optimism.
The central question for investors now is whether the CFO’s decision represents a routine personal financial decision or a subtle indicator that the stock’s remarkable rally may be due for a pause.
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