8. Booz Allen Hamilton Holding Corporation (NYSE:BAH)
5-year Beta (monthly): 0.59
Number of Hedge Fund Holders: 47
Booz Allen Hamilton Holding Corporation (NYSE:BAH) is a Virginia-based consulting firm. The company originally began as the Business Research Service and over the years, it evolved into a leading provider of consulting, analysis, and engineering services, primarily catering to government and military clients.
The company provides a range of services including cybersecurity, analytics, artificial intelligence (AI), digital solutions, engineering, and management consulting. It has established itself as a trusted partner for U.S. federal agencies, especially within the defense and intelligence sectors, as it delivers end-to-end technology services that address complex challenges across various domains.
Booz Allen (NYSE:BAH) has formed strategic partnerships with major technology providers such as Amazon Web Services, Microsoft, Red Hat, and ServiceNow. These collaborations improve its service offerings and allow the company to use cutting-edge technologies for cloud migration, cybersecurity improvements, and operational efficiency.
In Q2, 47 hedge funds had stakes worth $345.975 million in Booz Allen (NYSE:BAH). After increasing its stake in the company by 92%, Millennium Management owns 367,645 shares of the company, valued at $56.58 million, and is the top shareholder, as of June 30.
On August 19, TD Cowen analyst Cai von Rumohr maintained a Buy rating on the company with a price target of $165, as reported by TipRanks. The analyst sees the recent stock price drop as a buying opportunity, given its undervaluation compared to peers.
Despite a weak fiscal first quarter, von Rumohr expects strong performance in the second quarter due to improved billability, new hires, and resolved funding delays. He believes the company’s effective management and strategic positioning in the defense sector justify his positive outlook.
On August 29, the company announced a new task order from the U.S. Department of Homeland Security to support the Cybersecurity Infrastructure Security Agency’s Continuous Diagnostics and Mitigation DEFEND program. The three-year contract, valued at $421 million with a limit of $1.2 billion, will involve providing cybersecurity tools and expertise to 13 federal agencies, including NASA and the IRS. Booz Allen (NYSE:BAH) will focus on asset management, identity and access management, network security management, and data protection.
LVS Advisory stated the following regarding Booz Allen Hamilton Holding Corporation (NYSE:BAH) in its first quarter 2024 investor letter:
“We added Booz Allen Hamilton Holding Corporation (NYSE:BAH) to the growth portfolio in October 2023. I am highlighting Booz Allen this quarter because the exercise of comparing BAH to CACI serves as an interesting example of weighing the trade-offs between “quality” and “value” when picking stocks.
Booz Allen is a technology consulting firm specializing in government contracting. Founded in 1914, Booz Allen has a storied history partnering with the US Government which includes helping the US Navy prepare for World War II. These deep roots have helped engrain the Company into the fabric of Washington DC and provide a foundation for the business’ deep moat.
Not resting on its laurels, Booz Allen has relentlessly re-invested in its business by acquiring and retaining the top talent and technology in the government contracting space. This has translated into Booz Allen serving as one of the most awarded government contractors. The Company is the #1 provider of artificial intelligence to the US Federal Government with nearly 200 government AI contracts spanning defense, national security, and civil missions. Frost & Sullivan ranks Booz Allen as the most innovative company in the Global Managed Detection and Response Market. The Company is also ranked highly in broader surveys including Fortune’s ‘World’s Most Admired Companies’ and Glassdoor’s ‘Best 100 Places to Work’…” (Click here to read the full text)
