Booz Allen Stock Story

BAH

Stock

USD 92.84 2.48 2.74%

Macroaxis Story

As many rational traders are trying to avoid industrials space, it makes sense to concentrate on Booz Allen Hamilton a little further and understand how it stands against ACTUA CORP and other similar entities. We are going to examine some of the competitive aspects of both Booz Allen and ACTUA.

Published over a month ago

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Booz Allen Hamilton Current Investor Sentiment

Investor biases related to Booz Allen's public news can be used to forecast risks associated with investment in Booz Allen. The trend in average sentiment can be used to explain how an investor holding Booz Allen can time the market purely based on public headlines and social activities around Booz Allen Hamilton. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.

Booz Allen's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Booz Allen's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Booz Allen's news discussions. The higher the estimate score, the more favorable is the investor's outlook on Booz Allen.

Booz Allen Maximum Pain Price across 2022-07-15 Option Contracts

Booz Allen's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Booz Allen close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Booz Allen's options.

Our viewpoint on Booz Allen (NYSE:BAH) and ACTUA CORP (NASDAQ:ACTA)?

By analyzing existing basic indicators between Booz Allen and ACTUA, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in ACTUA with a short position in Booz Allen. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Booz Allen has an asset utilization ratio of 269.09 percent. This implies that the company is making $2.69 for each dollar of assets. An increasing asset utilization means that Booz Allen Hamilton is more efficient with each dollar of assets it utilizes for everyday operations.

Our viewpoint on Booz Allen (NYSE:BAH) and ACTUA CORP (NASDAQ:ACTA)?

Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Booz Allen or Cra International is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

Understending Booz Allen dividends

A dividend is the distribution of a portion of Booz Allen earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Booz Allen dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Booz Allen one year expected dividend income is about $0.1 per share.

The current Dividend Yield is estimated to increase to 0.0185, while Payment of Dividends and Other Cash Distributions is projected to decrease to (225.6 M).

	Last Reported	Projected for 2022
Payment of Dividends and Other Cash Distributions	-209.1 M	-225.6 M
Dividend Yield	0.018	0.0185
Dividends per Basic Common Share	1.54	1.53

Investing in stocks that pay dividends, such as stock of Booz Allen Hamilton, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Booz Allen must own a stock before its ex-dividend date to receive its next dividend.

This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Booz Allen. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Booz Allen's Liquidity

Booz Allen financial leverage refers to using borrowed capital as a funding source to finance Booz Allen Hamilton ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Booz Allen financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Booz Allen's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.

It is good to see analyst projects for Booz Allen, but it might be worth checking our own buy vs. sell analysis

Correlation Between Booz Allen and Cra International

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Booz Allen together with similar or unrelated positions with a negative correlation. For example, you can also add Cra International to your portfolio. If Cra International is not perfectly correlated to Booz Allen it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Booz Allen for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.

Please check pair correlation details between BAH and CRAI for more information.

Sale by Karen Dahut of 50068 shares of Booz Allen

Legal trades by Booz Allen insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:

Booz Allen insider trading alert for sale of class a common stock by Karen Dahut, Executive Vice President, on 29th of June 2022. This event was filed by Booz Allen Hamilton Holdi with SEC on 2022-06-29. Statement of changes in beneficial ownership - SEC Form 4. Karen Dahut currently serves as executive vice president, defence and commercial group lead of Booz Allen Hamilton [view details]

Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Over 3 percent rise for Booz Allen. What does it mean for stockholders?

The potential upside is down to 4.12 as of today. Booz Allen Hamilton has relatively low volatility with skewness of 0.63 and kurtosis of 1.46. However, we advise all investors to independently investigate Booz Allen Hamilton to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Booz Allen's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Booz Allen's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Booz Allen Implied Volatility

Booz Allen's implied volatility exposes the market's sentiment of Booz Allen Hamilton stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Booz Allen's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Booz Allen stock will not fluctuate a lot when Booz Allen's options are near their expiration.

The Current Takeaway on Booz Allen Investment

While other companies under the consulting services industry are still a bit expensive, Booz Allen may offer a potential longer-term growth to stockholders. With an optimistic outlook on your 90 days horizon, it may be a good time to buy new shares of Booz Allen or increase your existing holdings in the Stock as it seems the potential growth has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Booz Allen.

Editorial Staff

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Booz Allen Hamilton. Please refer to our Terms of Use for any information regarding our disclosure principles.

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