Divergent Investor Moves and a Strong Buyback Shape Hackett’s Outlook

The stock of AI consulting firm Hackett is currently presenting a complex narrative to the market. Analyst consensus maintains a positive rating, yet recent activity from major shareholders and the company itself sends conflicting signals about its near-term trajectory.

Market researchers continue to hold a "Moderate Buy" consensus on Hackett, with an average price target of $27.00. The company's strategic pivot towards generative AI consulting is viewed as a core growth driver. This strategic shift, however, incurred restructuring costs of $3.1 million in the third quarter, which weighed on its GAAP earnings.

Institutional Investors: A Split in Strategy

Recent filings reveal a clear divergence in strategy among Hackett's largest investors. On one side, significant selling pressure emerged. Franklin Resources Inc. slashed its stake by 68.8% last quarter, leaving it with holdings valued at approximately $941,000. Trigran Investments also reduced its position by 13.3%.

This trend is not universal. Other institutional players have been accumulating shares. Allianz Asset Management GmbH increased its investment by 30.6%, while Geode Capital Management and Invesco also expanded their positions. Overall, institutional investors continue to hold 78.12% of the company's shares.

Company-Led Confidence: An Oversubscribed Buyback

In a notable display of self-assurance, Hackett recently completed a tender offer for its own stock. The preliminary results of its "Dutch Auction" buyback program, aimed at repurchasing up to $40 million in equity, revealed stronger-than-expected demand from shareholders.

Should investors sell immediately? Or is it worth buying Hackett?

The company anticipates acquiring approximately 2 million shares at a price of $20.00 per share. This transaction would represent about 7.37% of Hackett's outstanding stock. Shareholders who tendered their shares at or below the clearing price are expected to sell roughly 96.98% of the shares they offered.

Recent Performance and Key Metrics

The company's latest quarterly report, released in early November, presented mixed results. While the adjusted earnings per share (EPS) of $0.37 met analyst expectations, revenue of $73.10 million fell short of the $74.82 million estimate. For the current fourth quarter, management projects an adjusted EPS in the range of $0.380 to $0.400.

Current Financial Snapshot:
* Share Price: ~$19.43
* P/E Ratio: 51.13
* Dividend Yield: 2.5%
* Payout Ratio: 126%

The elevated P/E ratio and a payout ratio exceeding 100% indicate the stock trades at a significant premium to its earnings, with the current dividend not fully covered by profits. The stock is scheduled to trade ex-dividend on December 23, 2025, with a payment of $0.12 per share to be distributed on January 9, 2026.