NEW YORK, N.Y. – Shares of Booz Allen Hamilton recovered some ground Thursday, a day after they fell sharply on news that one of its contractors was arrested for stealing classified information from the National Security Agency.
At least three Wall Street analysts said that they do not expect the recent arrest to hurt Booz Allen in the long term, since its stock recovered after it was revealed in 2013 that Booz Allen contractor Edward Snowden took and shared documents about secret surveillance programs.
The government said Wednesday that Booz Allen contractor Harold Thomas Martin III was arrested in August for removing classified information. A defence attorney said Martin did not intend to betray the U.S. Booz Allen said in a statement that it is co-operating with the investigation.
Stifel analyst William Loomis said in a note clients late Wednesday that he thinks Booz Allen’s business “will not be materially impacted.”
“Given the increase in security and stricter processes by NSA and Booz Allen following the 2013 Snowden leaks, we think it is likely that Booz Allen was not at fault for its employee’s theft,” Loomis said.
Shares of Booz Allen Hamilton Holding Corp., which is based in McLean, Virginia, rose 77 cents, or 2.5 per cent, to close Thursday at $31.08. They fell nearly 4 per cent on Wednesday.