Daily Stock Analysis: The Hackett Group

The Hackett Group Inc has the ticker symbol HCKT and is a small-cap member of the technology sector as an information technology services firm. This is my fourth report on The Hackett Group for this Vista folio. The most recent was March 30.

The Hackett Group Inc is an advisory firm. The company's offerings include executive advisory programs, benchmarking, business transportation, and technology advisory services. 

The company's executive and practices advisory programs offer performance metrics, peer-learning opportunities, and practice implementation practices. 

Benchmarking services help organizations measure and assess internal efficiency and effectiveness. 

The business transformation programs help customers develop strategies to improve performance. 

The company's technology advisory services help clients improve decision-making capabilities and deploy software applications. 

The Hackett Group generates the majority of its revenue in the United States.

The company was formerly known as Answerthink, Inc. and changed its name to The Hackett Group, Inc. in 2008. 

The Hackett Group, Inc. was founded in 1991 and is headquartered in Miami, Florida.

Three key data points gauge dividend equities or funds like The Hackett Group Inc:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether a company has made, is making, and will make money. 

HCKT Price

Hackett's price per share closed at $17.28 yesterday. One year ago its price was $12.74. Thus, the price per share has grown nearly 36% as it recovered from last year's COVID market slump. 

Should The Hackett Group Inc stock trade in the range of $11 to $21.00 this next year, its recent $17.28 price might rise by $2.72 to reach $20.00 by May 17, 2022. My estimate is within  $0.33 of the median of three price estimates from analysts tracking HCKT. 

HCKT Dividends

Hackett's most recent quarterly dividend of $0.10 is payable July 9th. That equates to $0.40 annually with a yield of 2.31% at Friday's $17.28 closing price. The Hackett Group Inc paid regular semiannual dividends (generally increasing annually) from December 2014  to June 2020 and went to Q pay thereafter.

HCKT Returns

Adding the $0.40 annual The Hackett Group Inc forward-looking dividend to my $2.72 price upside estimate shows a $3.12 potential gross gain, per share, to be reduced by any costs to trade the shares.  

If we put a little over $1,000.00 today in Hackett at $17.28 per share, we'd buy 58 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.17 per share.

Subtract that maybe $0.17 brokerage cost from my estimated $3.12 gross gain per share results in a net gain of $2.95 X 58 shares = $171.10. for a 17.11% net gain on a $1,002.24 investment.

So it is that The Hackett Group Inc shows a possible 17.1% net gain including a 2.31% forward-looking dividend yield. 

Over the next year at this time, a $1000 investment in HCKT could generate $23.10 in cash dividends. And a single share bought at Friday's closing price was $17.28! So, if Hackett is your kind of information technology services investment, The Hackett Group Inc share price about $6 below the expected annual dividend income from $1,000 invested. This suggests now is a prime time to add The Hackett Group Inc to your holdings. 

All of the estimates above are speculation based on the past history of The Hackett Group Inc. Only time and money invested in this stock will determine its worth.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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