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Booz Allen Hamilton executive sells $2.17 million in stock

Published 28/10/2024, 21:52
BAH
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Nancy Laben, the Executive Vice President and Chief Legal Officer at Booz Allen (NYSE:BAH) Hamilton Holding Corp (NYSE:BAH), recently sold 11,984 shares of the company's Class A common stock. The shares were sold at an average price of $180.96, resulting in a total transaction value of approximately $2.17 million. Following this sale, Laben retains ownership of 24,805 shares, which include restricted stock units. The transaction was executed as part of a pre-established Rule 10b5-1 trading plan.

In other recent news, consultancy firm Booz Allen Hamilton reported a robust second quarter for fiscal year 2025, noting substantial revenue increases across its civil, defense, and intelligence sectors. The company's growth strategy, VOLT, and a record $41 billion backlog were key contributors to its performance, alongside a $115 million insurance recovery and a $200 million boost from payroll modernization. Adjusted EBITDA reached $364 million, a 25% increase year-over-year, and net income rose by 129% to $390 million. The firm also announced a quarterly dividend of $0.51 per share.

Booz Allen Hamilton raised its guidance for fiscal year 2025, a decision influenced by a record backlog and an increase in client staff by 4.3%. The company anticipates revenue growth for the fiscal year to be between 11% and 13%. Adjusted EBITDA is projected between $1.3 billion and $1.33 billion, and adjusted diluted EPS is expected to be between $6.10 and $6.30.

Despite facing re-compete risks and contract churn, including the loss of the Advana contract and a Department of Veterans Affairs contract to Deloitte, Booz Allen maintains a strong demand environment and a qualified pipeline of over $20 billion. The company's operating model allows for quick adaptation to client needs amid shifting priorities, and recruitment and retention trends remain strong. These recent developments underscore Booz Allen Hamilton's market presence and future potential.

InvestingPro Insights

As Nancy Laben's recent stock sale draws attention to Booz Allen Hamilton Holding Corp (NYSE:BAH), it's worth examining some key financial metrics and insights provided by InvestingPro to gain a more comprehensive view of the company's current position.

According to InvestingPro data, Booz Allen Hamilton boasts a market capitalization of $23.69 billion, reflecting its significant presence in the consulting industry. The company's P/E ratio stands at 28.94, which, when considered alongside its PEG ratio of 0.15 for the last twelve months as of Q2 2025, suggests that the stock may be undervalued relative to its growth potential.

InvestingPro Tips highlight that Booz Allen Hamilton has raised its dividend for 8 consecutive years, demonstrating a commitment to shareholder returns. This is further supported by the company's dividend yield of 1.12% and a dividend growth rate of 8.51% over the last twelve months as of Q2 2025. Such consistent dividend growth may be attractive to income-focused investors, particularly in light of the company's strong financial performance.

The company's revenue growth is noteworthy, with an 18.01% increase reported in Q2 2025 compared to the same quarter in the previous year. This robust top-line growth is complemented by an impressive EBITDA growth of 30.89% over the last twelve months as of Q2 2025, indicating improved operational efficiency.

Investors should also note that Booz Allen Hamilton is trading near its 52-week high, with the current price at 98.15% of its peak. This, coupled with a significant 57.22% price total return over the past year, reflects strong market confidence in the company's prospects.

While these metrics paint a positive picture, it's important to consider that InvestingPro Tips also indicate that two analysts have revised their earnings downwards for the upcoming period. Additionally, the stock's RSI suggests it may be in overbought territory, which could signal a potential short-term pullback.

For readers interested in a more comprehensive analysis, InvestingPro offers 16 additional tips for Booz Allen Hamilton, providing a deeper understanding of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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