Booz Allen Hamilton Holding Corporation (NYSE:BAH) stock fell yesterday on news that one of its NSA contractors was arrested for allegedly stealing classified information.
The Booz Allen contractor that allegedly stole secrets from the NSA is Harold Thomas. BAH said it has fired Thomas and is complying with and investigation into the matter from the Federal Bureau of Investigation (FBI).
While Thomas has been arrested for the theft, his lawyer, Jim Wyda, said there is no evidence that he intended to betray the United States. The NSA uses contractors because it helps them save money and keeps them from having to adjust the number of government jobs.
Booz Allen is the same company that Edward Snowden worked at. The recent case with Thomas marks the second time in three years that it has been connected to classified information being stolen. This is a big deal for the NSA, which deals in espionage and secrets, reports The Wall Street Journal.
While the company’s stock did fall yesterday, it has started to recover today. Three different Wall Street analysts told The New York Times that they don’t expect the news to hurt BAH stock in the long run.
“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,” William Loomis, an analyst at Stifel, told NYT.
BAH stock was up 2% as of Noon Thursday after having dropped 3% on Wednesday.
