Daily Stock Pick; The Hackett Group (HCKT)
This week, I'm looking for the third technology sector representative of six for my Ivy portfolio.
That technology sector has nineteen industries ranging from communication equipment, computers, consumer electronics, and contract manufacturing, to health, information technology, and services, internet, scientific instruments, software, solar, and all such techno-marvels.
Today I'm reviewing small-cap information technology and advisory, firm named The Hackett Group Inc. Its ticker symbol is HCKT.
The Hackett Group Inc is a U.S 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's benchmarking services conduct studies in the areas of selling, general and administrative, finance, human resources, information technology, procurement, enterprise performance management, shared service centers, and working capital management.
Its business transformation programs help clients to develop a coordinated strategy for achieving performance enhancements across the enterprise; ERP, enterprise performance management, and analytic solutions help clients in enhancing the value of their investments in enterprise software and business analytics; as well as off-shore application development, and application maintenance and support services.
The company was formerly known as Answerthink, Inc. and changed its name to The Hackett Group, Inc. in 2008.
The company was founded in 1991 and is headquartered in Miami, Florida.
I use three key data points to gauge the value of any dividend equity-like The Hackett Group Inc:
(1) Price
(2) Dividends
(3) Returns
Besides those three, several other keys will finally unlock an equity or fund in which to invest.
Those first three primary keys, however, best tell whether a company has made, is making, and will make money.
HCKT Price
Hackett's price per share closed at $16.36 yesterday. A year ago its price was $17.97. Price fell $1.61 per share last year, or over 8.95%.
Assuming Hackett's stock trades in the range of $14 to $20 this year, Hackett's recent $16.36 price could rise by$2.64 and go to $19.00 by early-March, 2020.
HCKT Dividends
Hackett's most recent Quarterly dividend was $0.17 paid January 4th.
That $0.17 quarterly dividend equates to a$0.68 annual payout and a yield of 4.16% at yesterday's $16.36 closing price.
Gains For HCKT?
Adding the $0.68 annual estimated dividend to my $2.64 Hackett estimated price upside shows a $3.32 potential gross annual gain, per share, which will be reduced by costs to trade those shares.
Say we put a little under $1,000.00 today at the $16.36 recent stock price would buy us 61 of The Hackett Group Inc shares.
A $10 broker fee paid half at purchase and half at sale costs $0.16 per share.
Subtract that $0.16 brokerage cost from the estimated $3.32 gross annual gain leaves a net gain of $3.16 X 61 shares
= $192.76 or nearly a 20% net gain on a $997.96 investment.
Therefore, The Hackett Group Inc whose trading ticker symbol is HCKT now shows a possible net gain of nearly 20% including a 4.16% dividend yield.
Five brokers cover this stock:
Two say "buy" HCKT.
Two say HCKT will "outperform" peers.
One say "hold" on to your HCKT shares.
Therefore, you can look at The Hackett Group Inc and see it has made money, is making money, and could throw a net gain of 20% including a 4.16% dividend yield. It could be more, it could be less.
The above speculation is based on past year performance. The actual results remain to be seen to determine if The Hackett Group Inc is worth your time and money.
Disclosure: This article was compiled by Rydlun & Co., LLC from data derived from www.ycharts. com; www.finance.yahoo.com; analyst median target price by YCharts
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