Principal Financial Group Inc. Reduces Stake in Booz Allen Hamilton Holding Co.

On January 2, 2025, it was reported that Principal Financial Group Inc. has decreased its investment in Booz Allen Hamilton Holding Co. (NYSE:BAH) by 0.4% during the third quarter of the fiscal year. This information comes from the latest filing made by the company with the Securities and Exchange Commission (SEC). Following this reduction, Principal Financial Group now possesses 35,923 shares of the consulting firm's stock, having sold 129 shares during the quarter. The value of these holdings is approximately $5,847,000.

Other institutional investors have also been active in adjusting their positions regarding Booz Allen Hamilton's stock. Geode Capital Management LLC raised its ownership by 2.5% in the third quarter, now holding 2,341,533 shares valued at about $381,898,000 after purchasing an additional 58,038 shares. Meanwhile, AGF Management Ltd. made a significant move by increasing its stake by 63.4% in the second quarter, which brings its total shares to 1,750,610, worth around $269,419,000. American Century Companies Inc. also lifted its holdings by 6.1% during the second quarter, resulting in 1,672,961 shares valued at $257,469,000 after adding 96,553 shares.

Caisse DE Depot ET Placement DU Quebec expanded its investment by 28.5% in the third quarter, now owning 1,288,101 shares worth $209,651,000 after acquiring an additional 285,621 shares. Similarly, Dimensional Fund Advisors LP reported a 10.1% increase in shares held during the second quarter, now owning 1,021,239 shares valued at $157,184,000. Together, institutional investors now hold a substantial 91.82% of Booz Allen Hamilton's stock.

Insider Transactions

In related developments, executive vice president Richard Crowe sold 4,243 shares of Booz Allen Hamilton stock on October 24. This transaction took place at an average price of $165.00, resulting in a total value of approximately $700,095. Following this sale, Crowe retains 25,496 shares worth around $4,206,840, indicating a 14.27% reduction in his holdings. Additionally, CFO Matthew Calderone sold 4,065 shares on the same date for about $670,725, leading to a remaining ownership of 29,618 shares valued at $4,886,970, reflecting a 12.07% decrease in his position. Collectively, insiders control about 1.59% of the company's stock.

Stock Performance

The stock of Booz Allen Hamilton opened at $128.70 on Thursday. Key financial ratios include a debt-to-equity ratio of 2.76, a current ratio of 1.56, and a quick ratio of 1.56. The company's market capitalization is approximately $16.44 billion, with a price-to-earnings (PE) ratio of 20.20 and a dividend payout ratio (DPR) currently at 32.03%. Over the past year, the stock has reached a low of $123.17 and a high of $190.59. The fifty-day moving average stands at $151.79, while the 200-day moving average is $153.91.

Dividend Announcement

Booz Allen Hamilton has recently declared a quarterly dividend of $0.51 per share, which was paid to shareholders on December 4. Those on the company's record by November 15 received this payment, resulting in an annualized dividend of $2.04 and a yield of 1.59%.

Analyst Ratings Updates

Recent analyst coverage for Booz Allen Hamilton includes various updates. StockNews.com downgraded the company from a “buy” to a “hold” rating as of December 5. Additionally, UBS Group initiated coverage with a “neutral” rating and a target price of $159.00. Goldman Sachs reduced its price target from $210.00 to $158.00 while maintaining a “buy” rating, whereas JPMorgan Chase lowered its rating to “underweight” but raised the price target from $154.00 to $158.00. Truist Financial also revised its target price from $185.00 down to $155.00, classifying the stock as a hold. Overall, the consensus rating among analysts stands at “Hold,” with an average target price of $167.44.

Overview of Booz Allen Hamilton

Booz Allen Hamilton Holding Corporation specializes in providing management and technology consulting, analytics, engineering, digital solutions, mission operations, and cybersecurity services to government agencies, corporations, and not-for-profit organizations, operating both within the U.S. and internationally. The company focuses significantly on artificial intelligence services, including machine learning, predictive modeling, automation, and quantum computing.

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