Overview of Chuck Royce (Trades, Portfolio)'s Trade with The Hackett Group Inc
On December 31, 2023, the investment firm managed by Chuck Royce (Trades, Portfolio) executed a significant transaction involving shares of The Hackett Group Inc (HCKT, Financial). The firm reduced its holdings by 72,365 shares, which resulted in a -4.90% change in their position. This trade had a minor impact of -0.02% on the portfolio, with the shares being traded at a price of $22.77. Following the transaction, the firm's total share count in HCKT stood at 1,405,243, representing a 0.33% ratio of the traded stock in the portfolio and a 5.16% stake in the company.
Chuck Royce (Trades, Portfolio)'s Investment Firm Profile
Charles M. Royce, a renowned figure in the investment community, has been at the helm of Royce Pennsylvania Mutual Fund since 1972. With a focus on small-cap investing, the firm seeks out companies with market capitalizations up to $5 billion, occasionally venturing into those valued at up to $10 billion. The firm's investment philosophy is grounded in finding undervalued stocks that possess a strong balance sheet, a successful business track record, and promising future profitability. As of the latest data, the firm manages an equity portfolio worth $9.82 billion, with top holdings in various sectors, including Industrials and Technology. 
Introduction to The Hackett Group Inc
The Hackett Group Inc, based in the USA and publicly traded since May 28, 1998, is an advisory firm specializing in executive advisory programs, benchmarking, business transformation, and cloud enterprise application implementation. Its services are designed to enhance organizational efficiency and decision-making capabilities. The company operates through segments such as Global Strategy & Business Transformation, Oracle Solutions, and SAP Solutions. With a market capitalization of $643.077 million and a stock price of $23.61, HCKT is currently deemed fairly valued with a GF Value of $24.49 and a PE ratio of 18.59. 
Financial and Market Analysis of HCKT
The Hackett Group Inc's stock has shown a positive gain of 3.69% since the trade date and a year-to-date increase of 4.1%. The company's GF Score stands at 84/100, indicating good outperformance potential. HCKT's financial strength is reflected in its balance sheet rank of 8/10, while its profitability rank is also strong at 8/10. The growth rank is moderate at 5/10, and the GF Value rank is 6/10. The stock's momentum rank is high at 8/10, suggesting a robust market performance.
Impact of Chuck Royce (Trades, Portfolio)'s Trade on Portfolio
The recent reduction in HCKT shares by Chuck Royce (Trades, Portfolio)'s firm has left it with a significant but not dominant position in the company. The trade's impact on the portfolio was minimal, yet it reflects a strategic adjustment by the firm. With a 0.33% portfolio ratio and a 5.16% holding in HCKT, the firm maintains a balanced and diversified investment approach.
The Hackett Group Inc's Financial Health and Rankings
The Hackett Group Inc boasts a solid financial foundation, with key ratios such as ROE and ROA standing at impressive levels of 40.97% and 18.93%, respectively. The company's cash to debt ratio is 0.22, and its interest coverage is a robust 19.27. These figures underscore the company's ability to manage its financial obligations effectively. The operating margin growth is at 9.40%, and the company has experienced a steady EBITDA growth over the past three years.
Comparative Analysis with Other Gurus
Ariel Investment, LLC emerges as the largest guru shareholder in HCKT, while other notable investors like Ken Fisher (Trades, Portfolio) also hold stakes in the company. This collective interest from multiple investment gurus underscores the attractiveness of Hackett Group's stock within the investment community.
Market Reaction and Future Outlook for HCKT
The Hackett Group Inc's stock momentum and investor sentiment are positive, as indicated by RSI values over various periods. The company's future performance potential, based on the GF Score and other growth indicators, suggests that HCKT may continue to offer good outperformance potential. As the market reacts to the firm's recent trade and other developments, investors will be watching closely to see how the company's strategies unfold in the coming months.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
