Joan Lordi Amble, Director at Booz Allen Hamilton BAH, disclosed an insider purchase on November 25, based on a new SEC filing.

What Happened: Amble’s recent purchase of 2,000 shares of Booz Allen Hamilton, disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday, reflects confidence in the company’s potential. The total transaction value is $294,260.

Booz Allen Hamilton‘s shares are actively trading at $149.69, experiencing a up of 1.51% during Tuesday’s morning session.

Unveiling the Story Behind Booz Allen Hamilton

Booz Allen Hamilton Holding Corp is a provider of management consulting services to the U.S. government. Other services offered include technology, such as cloud computing and cybersecurity consulting, and engineering consulting. The consulting services are focused on defense, intelligence, and civil markets. In addition to the U.S. government, Booz Allen Hamilton provides its management and technology consulting services to large corporations, institutions, and nonprofit organizations. The company assists clients in long-term engagements around the globe.

Key Indicators: Booz Allen Hamilton’s Financial Health

Revenue Growth: Booz Allen Hamilton displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 18.01%. This indicates a notable increase in the company’s top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.

Key Insights into Profitability Metrics:

• Gross Margin: With a high gross margin of 56.7%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Booz Allen Hamilton’s EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 3.02.

Debt Management: Booz Allen Hamilton’s debt-to-equity ratio is notably higher than the industry average. With a ratio of 3.01, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 23.22 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 1.68, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 14.47, Booz Allen Hamilton could be considered undervalued.

Market Capitalization: Exceeding industry standards, the company’s market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

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Delving Into the Significance of Insider Transactions

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

When discussing legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Navigating the World of Insider Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.

Check Out The Full List Of Booz Allen Hamilton’s Insider Trades.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.