What Happened?
Shares of government consulting firm Booz Allen Hamilton (NYSE:BAH) fell 8.3% in the afternoon session as stocks of consulting firms fell after Defense Secretary Pete Hegseth announced that the government would cancel some consulting contracts.
Also, another consulting firm, Accenture, reported its Q4 2024 (fiiscal Q2 2025) financial results and raised concerns about weaker sales in the fed vertical. Accenture CEO Julie Spellman Sweet noted that the new administration is focused on improving government efficiency, leading to a slowdown in procurement processes and negatively impacting sales.
The shares closed the day at $103.56, down 8.1% from previous close.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Booz Allen Hamilton? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Booz Allen Hamilton’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Booz Allen Hamilton is down 18.8% since the beginning of the year, and at $104.01 per share, it is trading 44.1% below its 52-week high of $186 from October 2024. Investors who bought $1,000 worth of Booz Allen Hamilton’s shares 5 years ago would now be looking at an investment worth $1,795.
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