Daily Stock Pick - The Hackett Group

A portfolio of stocks I started last week, named Volio Folio, holds 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!

I'm reviewing today the third of five technology sector stocks this week striving to be picked to join the Volio folio collection. This would be the second pick for Volio!

The technology stock sector has 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 firm named The Hackett Group Inc. Their trading ticker symbol is HCKT.I previously reported on this company on June 4, 2019 for the Ivy portfolio, It has yet to be chosen!

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 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-paying equities or funds like The Hackett Group Inc (HCKT):

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest or not.

Those three basic 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 $19.60. In a year its price fell $3.24 or16.5%.

Assuming Hackett's stock trades in the range of $14 to $22.00 this year, Hackett's recent $16.36 price could rise by $3.64 and get to $20.00 by mid September 2020.

HCKT Dividends

Hackett's latest declared semi-annual dividend was $0.18 paid July 10th.

That $0.18 SA payout added to the previous one equates to $0.36 annually and yields2.2% based on yesterday's $16.36 closing price.

AVX Gains?

Adding the $0.46 annual estimated dividend to my $0.14 estimate of AVX's price upside shows a $0.60 potential gross gain, per share, which will be reduced by costs to trade these shares.

Say we put a little under $1,000.00 today at the $16.36 recent stock price, we'd buy 61 The Hackett Group Inc (HCKT) shares.

A $10 broker fee paid half at purchase and half at sale will cost us $0.16 per share.

Subtract that $0.16 brokerage cost from the estimated $3.64 gross estimated gain leaves a net gain of $3.48 X 61 shares = ($212.28) or a 21.3% 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 21.3% including a 2.2% 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 learn if The Hackett Group Inc, (HCKT) is worth your time and money.

Disclosure: This article was compiled by Rydlun & ...

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George Lipton 4 years ago Member's comment

Never followed $HCKT before, but it looks good. I'll take a closer look, thanks.