Booz Allen Hamilton CFO Sells $618,400 in Company Stock

Booz Allen Hamilton Holding Corp’s Executive Vice President and Chief Financial Officer, Matthew Calderone, has recently sold 3,865 shares of the company’s Class A Common Stock, totaling $618,400. This transaction occurred on September 23, 2024, at a share price of $160.

The sale was executed under a Rule 10b5-1 trading plan that Calderone established on June 5, 2024. After this sale, he retains 33,683 shares of Class A Common Stock, which includes some restricted stock units.

Insider transactions like this are often closely scrutinized by investors, serving as a barometer for executives’ views on the company’s stock value and its future. While Calderone’s motives for selling the shares haven’t been made public, executing the trade under a predetermined plan helps mitigate concerns related to insider trading by providing a structured timeline for selling shares.

Booz Allen Hamilton, based in McLean, Virginia, specializes in management consulting services for government, corporate, and nonprofit clients. The company’s stock is publicly traded on the New York Stock Exchange.

In light of these developments, investors will likely continue to monitor insider activities as part of their broader analysis of the company’s financial well-being and management decisions.

In further news, Booz Allen Hamilton has made notable advancements in its operations. Truist Securities has revised its outlook on the company’s stock, upgrading its price target from $140 to $165 following a strong Q1 FY2025 earnings report that showcased a revenue increase to $2.9 billion, an 11% rise year-over-year. Despite a 3% drop in the intelligence sector, the defense segment reported a significant 16% increase in revenue.

Additionally, the company has secured large contracts, including a $1.2 billion task order from the U.S. Department of Homeland Security aimed at strengthening cybersecurity, and a $506 million contract with the U.S. Army, representing its largest task order under the Information Analysis Center Multiple Award Contract. TD Cowen has also maintained a Buy rating with a $165 price target, indicating confidence in the company’s upcoming performance.

Moreover, Booz Allen Hamilton has appointed Bill Vass as its new Chief Technology Officer, highlighting its dedication to enhancing technological solutions for the U.S. Department of Defense and achieving its financial targets.

As investors review the recent share sale by CFO Matthew Calderone, it’s essential to consider Booz Allen Hamilton’s financial health and market performance through key metrics. The company boasts a market capitalization of $20.67 billion, emphasizing its significance in the consulting field.

Booz Allen’s dedication to returning value to shareholders is reflected in its consistent dividend increases over the past eight years and uninterrupted payments over 13 years, showcasing a stable shareholder-friendly policy. The company offers a dividend yield of 1.28%, appealing to income-oriented investors.

From a valuation standpoint, Booz Allen Hamilton is trading at a P/E ratio of 34.31, which appears low relative to its near-term earnings growth, suggesting it may be undervalued. This is supported by a PEG ratio of 0.31 for the last twelve months, highlighting a favorable growth outlook when accounting for earnings advancements. Additionally, the share price remains close to its 52-week high, indicating strong investor confidence.

Furthermore, the company’s revenue experienced a growth of 13.3% over the past year, signaling Booz Allen Hamilton’s effective expansion and sales strategies. With these financial insights, stakeholders can attain a thorough understanding of the company’s current market position and prospective future growth.