Daily Stock Pick: The Hackett Group - Friday, June 19
A portfolio of stocks I've been building since September 3, 2019, named Volio, will eventually hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!
Today I'm reviewing the fifth of five technology sector stocks poised to join my Volio folio this week. One could be my forty-second pick for Volio!
That technology sector includes nineteen industries ranging from communication equipment, computers, consumer electronics, and contract manufacturing, to health, information technology and services, to internet, scientific instruments, software, solar, and all such techno-marvels.
My subject today is a small-cap information technology services outfit named, The Hackett Group Inc. Its trading ticker symbol is HCKT. This is my second report this year on Infosys Ltd for this Volio portfolio. My previous report aired on April 29th.
The Hackett Group Inc is a United States based 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.
The 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.
I use three key data points to 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 $13.78 yesterday. A year ago their price was $17.30. Price fell $3.52 or about 20.3% last year.
Assuming Hackett's stock trades in the range of $7.50 to $17.50 this next year, its recent $13.78 price might rise by $2.22 to reach $16.00 by June 19, 2021.
HCKT Dividends
Hackett's most recent declared semi-annual dividend was $0.18 paid, January 7th. That $0.18 SA dividend equates to $0.36 annually (presuming the second half June payment is declared before the month is over) the annual yield will be 2.61% at yesterday's $13.78 share price.
HCKT Gains?
Adding the $0.36 annual estimated dividend to my $2.22 optimistic estimate of The Hackett Group Inc price upside shows a $2.58 potential gross gain, per share, to be reduced by any costs to trade the shares.
If we put little over $1,000.00 today in The Hackett Group Inc we would buy 73 shares of HCKT stock.
A $10 broker fee paid half at purchase and half at sale could cost us about $0.14 per share.
Subtract that $0.14 brokerage cost from my estimated $2.58 gross gain per share results in a net gain of $2.44 X 73 shares = $178.12 for a 17.75% net gain on a $1,005.94 investment.
The Hackett Group Inc shows a possible 17.75% net gain including a 2.61% dividend yield. It could be more, it could be less.
The above speculation is based on past performance and supposition. Only time and money invested will tell if The Hackett Group Inc is worth it.
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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