Booz Allen Hamilton (BAH): How Do Missed Earnings and CEO Insider Buying Affect Its Valuation?

Booz Allen Hamilton Holding (BAH) stock is in focus after the company’s latest earnings fell short of expectations, leading to a downgrade from BofA Securities. At the same time, the CEO increased his personal stake with a large insider purchase. This signals confidence despite recent challenges.

See our latest analysis for Booz Allen Hamilton Holding.

Booz Allen’s bumpy few months have been hard to miss, as the share price is down nearly 18% over the past month and over 23% in the past quarter. While last year’s total shareholder return of -53% tells the story of a company grappling with renewed risk and changing investor sentiment, it has still eked out a modest 5-year total return of 7.6%. Recent news, including missed quarterly earnings, a fresh analyst downgrade, continued buybacks, and the CEO’s sizable insider purchase, suggests momentum is still struggling to rebuild despite some long-term growth signals in Booz Allen’s strategic projects.

If you’re curious about what else is showing resilience or attracting top-tier insider interest, now’s a great time to broaden your search and discover fast growing stocks with high insider ownership

With the stock now trading at a discount to analyst targets and after a year of underperformance, investors are asking whether this uncertainty is opening up a genuine bargain or if it is wise to remain cautious about pricing in future growth.

Most Popular Narrative: 15.8% Undervalued

Booz Allen Hamilton Holding’s widely followed narrative sees fair value at $101.50, a level about 16% above the recent close of $85.46. This suggests the market may not fully reflect the company’s projected long-term potential, even as caution remains high in the near term.

Booz Allen is positioned to benefit from increased federal investment in digital transformation, AI, and cybersecurity, as evidenced by record backlog, major new awards (for example, TOC-L for the Air Force and CBP cloud migration), and expanded tech partnerships. As procurement normalizes, this is likely to accelerate revenue growth.

Read the complete narrative.

Want to peek under the hood of this valuation? The fair value hinges on ambitious forecasts: a digital and security boom, new contract wins, and margin twists most investors haven’t spotted. Discover the bold assumptions and pivotal industry shifts shaping this price target. Explore what gives these projections their edge.

Result: Fair Value of $101.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent delays in government funding or increased competition could quickly test the current optimism and undermine Booz Allen’s projected turnaround.

Find out about the key risks to this Booz Allen Hamilton Holding narrative.

Build Your Own Booz Allen Hamilton Holding Narrative

Prefer to chart your own course or dig into the details yourself? You can analyze the data firsthand and shape your own conclusions in just minutes, then Do it your way.

A great starting point for your Booz Allen Hamilton Holding research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

Looking for More Investment Ideas?

Stay ahead and uncover fresh investment opportunities using the Simply Wall Street Screener. Don’t let great investing prospects slip through your fingers. Your next move could make all the difference.

• Capitalize on rapidly evolving financial frontiers by browsing these 81 cryptocurrency and blockchain stocks, which is set to transform payment systems and digital asset innovation.
• Secure potential income streams by comparing market leaders offering generous yields through these 20 dividend stocks with yields > 3% to meet your income goals.
• Spot trailblazers harnessing groundbreaking technology by checking out these 26 AI penny stocks, which are powering artificial intelligence advancements across industries.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com