Hackett Group, Inc. (HCKT)

Over the past six months, The Hackett Group's stock price has experienced several notable events, including a significant price decrease. In Q3 2025, the company's adjusted EPS met expectations, but revenue missed. The company announced the final results of a stock buyback and declared a quarterly dividend. Recent news highlighted the launch of Hackett AI XPLR™ 5.0, but one analyst downgraded the company to "Sell" due to revenue challenges and insufficient near-term growth from Gen AI adoption.

The Hackett Group Inc. exhibits some demand seasonality in terms of stock returns, with November having the highest probability of a positive return and March having the lowest. The company has observed a burgeoning demand for Generative AI services, which significantly boosted its Global S&BT segment in Q1 2025. Management anticipates a significant increase in IT budgets allocated to Gen AI initiatives in 2025 and expects accelerated growth in Gen AI revenues through Q4 2025 and into 2026.

The Hackett Group, Inc. is a strategic consulting and executive advisory firm specializing in generative AI and digital transformation, aiming to help global enterprises achieve "Digital World Class" performance. The company operates in the Business Support Services sector, focusing on IT Consulting and Business Services. Its services are delivered through three segments: Global Strategy & Business Transformation (Global S&BT), Oracle Solutions, and SAP Solutions. The company also develops proprietary software platforms such as AI XPLR and ZBrain.ai.

The Hackett Group is headquartered in Miami, Florida, with offices across the Americas, Europe, and Asia, serving clients in nearly 60 countries. It has legal entities in the United States and India.

In the past year, The Hackett Group has focused on Generative AI, enhancing its brand reputation. The company has been recognized as a top Gen AI transformation leader and has launched and enhanced its proprietary Gen AI platforms, including AI XPLR™ and ZBrain™. The Hackett Group has also formed strategic partnerships, such as with Celonis. However, the company was downgraded to a "Sell" rating by one analyst due to revenue struggles, and SG&A costs were at a five-year high.

Institutional investors hold a dominant share of The Hackett Group's stock, ranging from approximately 77.81% to 86.1%. Major institutional shareholders include BlackRock, Inc. and The Vanguard Group, Inc. Individual insiders account for about 9.48% to 11.44% of the company's shares, with Ted A. Fernandez, Chairman and CEO, being a significant insider shareholder. Paul G. Yovovich is identified as the largest individual shareholder.