Booz Allen Hamilton Shares Drop Nearly 11% After Contract Cancellations Due to Data Leak
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- Contract Cancellations Impact: The U.S. Treasury Department has canceled 31 contracts with Booz Allen Hamilton due to a data leak, resulting in an annual revenue loss of $4.8 million and total commitments of $21 million, which directly affects the company's standing in the government contracting market.
- Data Leak Incident: The leak was caused by employee Charles Edward Littlejohn, who admitted to leaking tax records of hundreds of thousands of employees, including President Trump's, damaging the company's reputation and eroding investor confidence.
- Market Reaction: As of today, Booz Allen's shares have dropped 9.66%, reflecting investor concerns over potential future contract losses, particularly as the Trump administration has been cutting contracts with consulting firms, leading to a roughly 50% decline in stock price since November 2024.
- Uncertain Industry Outlook: Although the $21 million in contracts is not material for the company, the challenging environment in the consulting industry necessitates cautious monitoring of market changes, advising against buying the dip amid ongoing uncertainties.
Analyst Views on BAH
Wall Street analysts forecast BAH stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for BAH is 99.20 USD with a low forecast of 80.00 USD and a high forecast of 160.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
2 Buy
7 Hold
3 Sell
Hold
Current: 102.230
Low
80.00
Averages
99.20
High
160.00
Current: 102.230
Low
80.00
Averages
99.20
High
160.00
About BAH
Booz Allen Hamilton Holding Corporation is the parent company of management and technology consulting and engineering services firm, Booz Allen Hamilton Inc. It provides management and technology consulting, analytics, engineering, digital solutions, mission operations, and cyber services to U.S. and international governments. Its solutions include artificial intelligence, cloud, digital customer experience, elite training, enterprise DevSecOps, JADC2, mission readiness, security and workforce of the future. It supports critical missions for a range of federal government clients, including nearly all the U.S. government's cabinet-level departments, as well as for commercial clients, both domestically and internationally. It supports its federal government clients by helping them tackle challenges such as protecting soldiers in combat and supporting their families. It also provides technologies to evolve defense missions and delivers solutions to warfighters in the digital battlespace.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
