NEW YORK (TheStreet) -- Booz Allen Hamilton Holding (BAH) stock is lower Thursday after the management and consulting firm announced the sale of 10 million shares of its common stock by an affiliate of The Carlyle Group. Booz Allen will not receive any of the proceeds from the offering.
The shares will be sold to Citigroup Global Markets and Barclays Capital, the underwriters of the offering. Citigroup and Barclays then propose to offer the sale of the shares from time to time.
At the offering's conclusion, Carlyle will own around 45.8% of outstanding stock. The offering is expected to close and settle on June 3.
By midday, shares had tumbled 6.5% to $22.10.
TheStreet Ratings team rates BOOZ ALLEN HAMILTON HLDG CP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate BOOZ ALLEN HAMILTON HLDG CP (BAH) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins."