Exploring The Hackett Group, Inc. (HCKT) Investor Profile: Who’s Buying and Why?

You look at The Hackett Group, Inc. (HCKT) and see a consulting firm aggressively pivoting to Generative Artificial Intelligence (Gen AI), but the stock chart tells a story of investor anxiety-the share price has dropped over 41.64% year-to-date through November 2025, which is a brutal hit. So, who is still buying, and why are they holding on when the market is punishing the stock? The answer is a deep-pocketed institutional base, with institutional ownership sitting at a staggering 84.54% of the float, including heavyweights like BlackRock, Inc., which held over 2.2 million shares as of the last major reporting period. To be fair, the Q3 2025 adjusted earnings per share (EPS) of $0.37 missed analyst forecasts, suggesting that the Gen AI transition is still costing money and hasn't fully paid off yet, but these major funds aren't in the business of short-term gambling; they are betting on the long game of The Hackett Group's strategic shift and their new AI XPLR platform. Are they seeing a deep-value opportunity, or is this a classic case of institutional inertia? Let's dig into the filings and see defintely what the smart money is doing with their capital.

Who Invests in The Hackett Group, Inc. (HCKT) and Why?

The investor profile for The Hackett Group, Inc. (HCKT) is dominated by large, sophisticated players, not the typical individual trader. The stock is a classic institutional holding, with a staggering 83.86% of shares held by institutions, leaving retail investors with a negligible stake. This tells you immediately that the stock's price movement is driven by big-money decisions, not forum chatter.

The largest holders are financial heavyweights like Vanguard Group Inc and BlackRock, Inc., who manage vast index and actively managed funds. Their presence signals a belief in HCKT's long-term stability and its position within the Information Technology Services sector. Insiders, including executives and directors, also hold a significant portion, which aligns their interests directly with outside shareholders.

Here's a snapshot of the major shareholder types:

• Institutional Investors: Own 83.86% of outstanding shares.
• Hedge Funds: Firms like Renaissance Technologies Llc hold positions, often employing quantitative strategies.
• Insiders: Hold a high percentage, aligning management's incentives with shareholders.

Investment Motivations: Growth, Income, and the AI Pivot

Investors are drawn to The Hackett Group, Inc. for a few clear reasons, but the main story right now is the company's aggressive pivot into Generative Artificial Intelligence (Gen AI). This is a classic growth-meets-value play.

The near-term growth story is Gen AI. Management is betting big on its proprietary AI XPLR platform, releasing version 4 in September 2025. This focus is already translating into revenue, with over 50% of new engagements including Gen AI elements as of Q2 2025. This shift is critical because it positions HCKT to capture a generational opportunity in enterprise transformation, as detailed in their Mission Statement, Vision, & Core Values of The Hackett Group, Inc. (HCKT).

On the income side, The Hackett Group, Inc. offers a reliable dividend, appealing to value and income-focused funds. The Board declared a quarterly dividend of $0.12 per share for both Q2 and Q3 2025. Plus, the company has been actively repurchasing shares, authorizing an additional $13.0 million in Q2 2025, which helps boost earnings per share (EPS) and signals management's confidence that the stock is defintely undervalued.

Investment Strategies: Long-Term Value and Growth-at-a-Reasonable-Price

The dominant strategy among HCKT investors is a blend of long-term holding and 'growth at a reasonable price' (GARP). You see this in the high institutional ownership and the analyst consensus of a 'Moderate Buy' rating, with an average price target of $27.00 as of late 2025.

Long-Term Holding: Major institutional investors like Vanguard Group Inc and BlackRock, Inc. are typically long-term holders. They are positioning themselves to benefit from the multi-year transformation cycle that Gen AI consulting represents, which is expected to accelerate growth after the near-term restructuring costs fade. Here's the quick math: the company's Q4 2025 adjusted EPS guidance is between $0.38 and $0.40, which shows solid underlying profitability despite the current investment phase.

Value Investing: Some investors are drawn to the stock's apparent undervaluation. With the stock trading around the $18.00 mark in November 2025, the average analyst price target of $27.00 suggests a significant upside potential of over 50%. What this estimate hides, though, is the risk from the legacy business, particularly the Oracle Solutions segment, which is projected to decline by as much as 20% in Q3 2025. This decline is the near-term headwind that creates the value opportunity for patient investors.

Institutional Ownership and Major Shareholders of The Hackett Group, Inc. (HCKT)

You're looking at The Hackett Group, Inc. (HCKT) and asking the right question: who owns the stock, and what does their buying or selling tell us about the company's future? The short answer is that institutional money-the big funds-is heavily invested, holding the vast majority of the shares, but the recent trend is a mixed signal reflecting the company's aggressive, yet costly, pivot to Generative AI (Gen AI).

As of late 2025, institutional investors own roughly 78.12% of The Hackett Group, Inc.'s common stock. This high percentage is typical for a seasoned consulting firm, but what's unique here is the substantial insider ownership, which stands at about 52.85%. That means management and founders have a huge stake in the long-term success of the Gen AI strategy, which can align their interests defintely with yours.

Top Institutional Investors: Who's Holding the Bag?

The institutional investor landscape for The Hackett Group, Inc. is dominated by a few major asset managers and specialized small-cap funds. These firms are effectively the company's largest external stakeholders, and their positions are a clear vote of confidence-or caution-on the strategic direction. The total institutional shares held long amount to approximately 28,027,109 shares. Based on the November 7, 2025, share price of $18.57, this represents a total value of around $520.4 million.

The top three institutional holders alone account for a significant portion of the float. Here's a quick look at the largest players and their reported holdings in late 2025:

It's a tight race between Vanguard Group Inc. and BlackRock, Inc. for the top spot, which is common for large-cap index and passive funds. Royce & Associates LP, a firm known for its small-cap focus, also maintains a substantial position, suggesting a belief in the firm's long-term value proposition.

Recent Shifts in Institutional Ownership: A Mixed Signal

The recent ownership changes show a market wrestling with The Hackett Group, Inc.'s strategic shift. Over the most recent quarter, the total number of institutional owners actually decreased by -7.89%. This signals that some smaller or more risk-averse funds are exiting their positions, likely due to near-term volatility and restructuring costs.

But here's the key: while the number of owners dropped, the total institutional shares held long saw a slight increase of 0.77% in the most recent quarter. This means the institutions that are staying are either increasing their stakes or the shares sold by exiting funds were quickly absorbed by existing large holders. This kind of consolidation suggests conviction among the remaining major players. It's a classic case of short-term pain for long-term gain.

• New Institutional Owners MRQ: 397 total owners.
• Change in Institutional Owners MRQ: -7.89%.
• Change in Institutional Shares (Long) MRQ: +0.77%.

The Impact of Institutional Investors on Strategy and Stock Price

These large investors play a crucial, if sometimes passive, role. Their collective sentiment directly maps to the stock's performance, which has seen a significant decline of 41.23% between November 2024 and November 2025. This drop is the market's initial reaction to the company's strategic pivot toward Gen AI, which has introduced short-term financial headwinds.

The Hackett Group, Inc. is aggressively reallocating resources, which led to Q2 2025 GAAP diluted earnings per share falling to just $0.06 (compared to $0.31 in Q2 2024) and Q3 2025 guidance including an estimated $1.5-$2 million in restructuring charges. Institutional investors understand these are the costs of transformation. The strategic moves that follow-like the announcement of a Dutch tender offer to repurchase up to $40 million of common stock and an increase in the share repurchase program authorization to $52.6 million-are direct signals to these large shareholders. Management is essentially saying: We believe the stock is undervalued, and we'll use our cash to prove it. This action helps to put a floor under the stock price and is a strong sign of management confidence, which is exactly what a major holder like BlackRock looks for.

The market's current view is 'cautious optimism.' Institutional investors are betting on the long-term potential of the Gen AI strategy, especially since over 50% of the company's new engagements now include Gen AI elements. This is a strategic bet on the future of enterprise consulting, and the large funds are sticking around for the long-term payoff. You can find more detail on the company's foundation and strategic direction here: The Hackett Group, Inc. (HCKT): History, Ownership, Mission, How It Works & Makes Money.

Key Investors and Their Impact on The Hackett Group, Inc. (HCKT)

The Hackett Group, Inc. (HCKT) is overwhelmingly an institutionally-owned stock, which means its share price and capital strategy are defintely influenced by a small group of major funds. As of late 2025, institutional investors hold a substantial stake, representing approximately 84.54% of the company's common stock, totaling over 28 million shares. That's a huge concentration of power, so you need to pay close attention to what these whales are doing.

This high level of institutional ownership signals a market trust in the company's long-term value proposition, particularly its strategic pivot toward Generative AI (GenAI) consulting. But, it also means that a large move by just one or two of the top holders can cause significant stock volatility. One big seller can really move the needle.

Notable Investors and Their Holdings

When you look at the top shareholders, you see a mix of passive index giants and active small-cap specialists. The largest holders are the usual suspects in the asset management world, but also a prominent value-oriented fund. Their sheer size gives them a powerful voice in the boardroom, especially regarding capital allocation decisions like buybacks and dividends.

Here's a quick look at the top institutional holders and their reported positions based on 2025 filings:

The presence of Royce & Associates, LP, a firm known for its focus on small-cap value, suggests a belief that The Hackett Group, Inc. (HCKT) is undervalued relative to its earnings power and cash flow, despite the near-term earnings pressure from restructuring.

Investor Influence: Capital Return and Strategic Alignment

The influence of these major investors is most apparent in the company's aggressive capital return program, a common mechanism to boost shareholder value when growth is undergoing a strategic transition. In the third quarter of 2025, the company repurchased 1.1 million shares for a total of $22.9 million at an average price of $20.70 per share.

This commitment to returning capital is a direct response to the shareholder base, especially in a year where the stock has been under pressure. The company's stock was trading around $30.72 at the start of 2025 but fell to about $18.16 by November, so buybacks at the lower end of that range are accretive.

• Buybacks signal management confidence.
• Dividends provide a floor for the stock.

You can see the full story of how this strategy developed in the context of the company's history and mission here: The Hackett Group, Inc. (HCKT): History, Ownership, Mission, How It Works & Makes Money.

Recent Moves: The Dutch Auction and AI Pivot

The most recent and significant action catering to investors was the announcement of a modified Dutch auction tender offer on November 5, 2025. This is a sophisticated way to execute a large buyback, allowing the company to purchase up to $40.0 million in value of its common stock at a price between $18.30 and $21.00 per share.

Here's the quick math: The company expects this tender offer to be 'strongly accretive,' meaning it should immediately increase earnings per share (EPS) by reducing the total share count. This move signals that management believes its shares are a better investment than other uses of capital right now. Plus, they continue to pay a quarterly dividend of $0.12 per share.

What this estimate hides, still, is the near-term risk from the company's aggressive investment in generative artificial intelligence (GenAI). The Q3 2025 GAAP diluted earnings per share fell to just $0.09 (from $0.31 a year prior), largely due to $4.8 million in non-cash stock compensation and a $3.1 million restructuring expense for severance. This is the cost of transformation, and investors are watching closely to see if the GenAI revenue growth can offset the declines in legacy segments like Oracle and SAP Solutions. Over 50% of new engagements now include GenAI elements, so the strategic bet is clear.

Market Impact and Investor Sentiment

The investor profile for The Hackett Group, Inc. (HCKT) is a fascinating study in conflicting signals: high insider confidence and strong institutional backing meet a market wrestling with near-term restructuring costs. Simply put, major shareholders are cautiously positive, viewing the current stock price as a deep-value entry point, but the market is still punishing the stock for its strategic pivot costs.

Institutional ownership is robust, with funds holding an estimated 84.54% of the float, a clear vote of confidence from the big money. Firms like Vanguard Group Inc and BlackRock, Inc. are among the largest institutional shareholders. Plus, insider ownership is exceptionally high-Paul G. Yovovich holds a massive 37.66% of the company, and Terence M. Graunke holds another 36.98%, which is a powerful signal of management's long-term commitment. You defintely want to see management owning a significant piece of the business.

The company itself is acting like a confident investor in its own stock. In November 2025, The Hackett Group, Inc. announced a Dutch tender offer to repurchase up to $40 million of common stock and increased its total share repurchase authorization to $52.6 million. This is a concrete action, not just talk, showing management believes the stock is undervalued, especially with the share price hovering around $18.57 as of early November 2025, which is a sharp 41.23% decline from a year prior. This buyback is a direct way to return capital and boost earnings per share (EPS).

• Institutional Ownership: 84.54% of float.
• Insider Ownership: 10.38% of float (extremely high).
• Recent Buyback: Up to $40 million Dutch tender offer announced.

Stock Reactions to Strategic Shifts and Earnings

Recent market reactions have been sensitive to the short-term pain of the company's strategic shift toward Generative AI (Gen AI). The stock dropped 2.15% to $23.28 following the Q2 2025 earnings release in August, even though revenue beat expectations at $78.9 million. Why the drop? Adjusted earnings per share (EPS) missed the forecast by 9.52%, coming in at $0.38 instead of the anticipated $0.42. The market saw the cost of transformation before the payoff.

The Q3 2025 results in November showed the same dynamic. Total revenue was $73.1 million, a decrease from the prior year, and GAAP diluted EPS fell to just $0.09. Here's the quick math: that GAAP figure was heavily impacted by $4.8 million in non-cash compensation and $3.1 million in restructuring costs related to the Gen AI pivot. The adjusted diluted EPS of $0.37 was right on target with guidance, but the market is still focused on the headline GAAP numbers and the short-term revenue contraction in segments like Oracle Solutions.

Analyst Consensus: Buy the AI Transformation

Wall Street analysts are largely ignoring the near-term volatility and focusing on the long-term opportunity, which is why the consensus rating is a Buy or Strong Buy. Analysts are setting an average 12-month price target of approximately $28.33, with a low of $27.00 and a high of $30.00. This implies a significant upside of around 56.35% from the current price of $18.12 as of late November 2025.

The core of their positive view is the company's aggressive pivot to Gen AI consulting, which you can read more about in the Mission Statement, Vision, & Core Values of The Hackett Group, Inc. (HCKT). The launch of platforms like AI XPLR V4 is seen as a major differentiator. Over 50% of new engagements now include Gen AI elements, which is a massive shift in the business mix. Analysts believe the restructuring costs and the decline in legacy segments, like the Oracle business, are simply the necessary price of admission to a higher-growth, higher-margin future.

What this estimate hides, however, is the risk that the Gen AI revenue growth might not accelerate fast enough to offset the decline in legacy consulting, or that the restructuring costs could persist longer than anticipated. Still, the analyst community is betting on the transformation.

Your next step should be to track the Q4 2025 revenue and adjusted EPS results against the company's guidance to gauge the true pace of the Gen AI transition's profitability.