Daily Stock Pick: The Hackett Group
That portfolio of stocks I've been building since September 3, 2019, named Volio, will by August 28 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 third of five technology sector stocks primed to join Volio as the ninth of nine representing the sector. One of the stocks I discuss this week could become the fifty-first overall selection for Volio!
My subject today is a small-cap information technology services company named, The Hackett Group Inc. Its trading ticker is HCKT. This is my fourth report on HCKT for this portfolio. Maybe four times will be the charm! Last I reported on HCKT on June 19.
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 $12.97 yesterday. A year ago their price was $16.30. Price fell $3.33 or about 20% last year.
Assuming Hackett's stock trades in the range of $10 to $20 this next year, its recent $12.97 price might rise by $2.03 to reach $15.00 by August 19, 2021.
HCKT Dividends
Hackett's most recently declared quarterly dividend was $0.095, payable October 9th. That Q dividend equates to $0.38 annually and yields 2.93% at yesterday's $12.97 share price.
HCKT Gains?
Adding the $0.38 annual estimated dividend to my $2.03 optimistic estimate of Hackett's price upside shows a $2.41 potential gross gain, per share, to be reduced by any costs to trade the shares.
If we put little under $1,000.00 today in The Hackett Group Inc at $12.97, we would buy 77 shares of (HCKT) stock.
A $10 broker fee paid half at purchase and half at sale could cost us about $0.13 per share.
Subtract that $0.13 brokerage cost from my estimated $2.41 gross gain per share results in a net gain of $2.28 X 77 shares = $175.56 for a 17.6% net gain on a $998.69 investment.
Thus, The Hackett Group Inc shows a possible 17.6% net gain including a 2.93% 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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