Booz Allen Hamilton Holding Corporation (NYSE:BAH) has garnered a consensus rating of “Hold” from seventeen brokerages that track the company’s stock, according to Marketbeat.com. The ratings reflect a diverse outlook on the firm, with three analysts issuing sell ratings, eleven maintaining hold ratings, two assigning buy ratings, and one declaring a strong buy.
The average target price for Booz Allen Hamilton shares stands at approximately $108.23 among analysts who have weighed in over the past year. Recent commentary from various equities research analysts highlights significant adjustments in price targets, indicative of market sentiment.
UBS Group, for example, reduced its price objective from $115.00 to $93.00, labeling the stock as “neutral” in a report dated October 27, 2023. Similarly, Jefferies Financial Group lowered its target from $100.00 to $95.00 while maintaining a “hold” rating in a note released on December 18, 2023.
TD Cowen reiterated a “hold” rating but adjusted its price target down to $105.00 from $125.00, reflecting a cautious stance on the stock’s performance. On October 24, 2023, Bank of America downgraded Booz Allen Hamilton from a “buy” to an “underperform” rating, setting its price objective at $90.00. In contrast, Stifel Nicolaus set a target price of $106.00 on the same day.
Recent Performance and Financial Results
Booz Allen Hamilton recently reported its earnings results on October 24, 2023. The firm posted a quarterly earnings per share (EPS) of $1.49, matching analysts’ expectations. The company’s net margin for the quarter was 7.06%, and it achieved a return on equity of 71.87%. Revenue totaled $2.89 billion, falling short of the consensus estimate of $2.99 billion. Year-over-year, the company’s quarterly revenue declined by 8.1%.
Looking forward, Booz Allen Hamilton has provided guidance for fiscal year 2026, projecting an EPS between $5.450 and $5.650. Analysts anticipate the company will report an EPS of $6.44 for the current fiscal year.
The firm has also announced a quarterly dividend of $0.55, which was paid on December 2, 2023, to shareholders on record as of November 14, 2023. This dividend equates to an annualized rate of $2.20, yielding approximately 2.6%. The ex-dividend date was also set for November 14, 2023, and the company’s payout ratio currently stands at 33.59%.
Insider Activity and Institutional Holdings
In notable insider activity, CEO Horacio Rozanski purchased 23,800 shares of Booz Allen Hamilton on October 30, 2023, at an average price of $84.66 per share, totaling $2,014,908.00. This acquisition increased his ownership stake in the company by 3.58%. Post-transaction, Rozanski holds approximately 687,745 shares, valued at around $58,224,491.70. This transaction was disclosed in a filing with the Securities and Exchange Commission (SEC).
Institutional investors have also shown varied interest in the company. Recently, Allworth Financial LP increased its holdings by 23.6% in the third quarter, now owning 4,831 shares valued at $483,000. IFP Advisors Inc. boosted its position by 69.9%, acquiring an additional 728 shares, bringing its total to 1,770 shares valued at $177,000.
Swiss Life Asset Management Ltd grew its stake by 7.9% in the same quarter, now owning 78,397 shares valued at $7,836,000. CIBC Bancorp USA Inc. and Caerus Investment Advisors LLC also established new positions, further indicating strong institutional interest. Overall, institutional investors hold 91.82% of Booz Allen Hamilton’s stock.
Booz Allen Hamilton, headquartered in McLean, Virginia, specializes in a broad range of management and technology consulting services. The firm caters to various sectors, including federal civilian agencies, defense, intelligence, and select commercial industries, offering expertise in strategy, data analytics, digital transformation, and cyber security.
