US Congress Trade Tracker - CACI International ($CACI) - Military Contractor
\*I'm new to posting on Reddit. If there's a more appropriate sub to post this stock pitch, please recommend.
**Stock pitch:** CACI International (**$CACI**). The genesis of the idea to invest is based on following congress stock trade disclosures and following up with due diligence for potential conflicts of interest (see "**Cisneros**" further below). FYI I'm long $CACI.
**Company Overview:** $CACI is an American multinational professional services & IT company that provides services to the US Federal Gov't/DoD/military/etc. (military contractor). A significant portion of their revenue (TBD%) comes from US Government contracts. With \~$10bn alone in primarily new Contract Awards since their Q4 Earnings (08.07.2024) split over a contract term length of \~5-10yrs (which looks to include a small % re-contracting). See the following links for summarized awarded contract details (Ctrl+F: Quarter Contract Awards).
1. [CACI | CACI Reports Results for Its Fiscal 2024 Fourth Quarter and Full Year and Issues Fiscal Year 2025 Guidance](https://investor.caci.com/news/news-details/2024/CACI-Reports-Results-for-Its-Fiscal-2024-Fourth-Quarter-and-Full-Year-and-Issues-Fiscal-Year-2025-Guidance/default.aspx)
2. [CACI | CACI Reports Results for Its Fiscal 2025 First Quarter and Raises Fiscal Year Guidance](https://investor.caci.com/news/news-details/2024/CACI-Reports-Results-for-Its-Fiscal-2025-First-Quarter-and-Raises-Fiscal-Year-Guidance/default.aspx)
3. [CACI | CACI Reports Results for Its Fiscal 2025 Second Quarter and Raises Fiscal Year Guidance](https://investor.caci.com/news/news-details/2025/CACI-Reports-Results-for-Its-Fiscal-2025-Second-Quarter-and-Raises-Fiscal-Year-Guidance/default.aspx)
**$CACI provides the following Services** (summarized via Copilot AI):
* Intelligence Solutions: Offering advanced analytics, cyber security, and intelligence operations support.
* Engineering Services: Providing systems engineering, logistics, and lifecycle support.
* IT Solutions: Delivering enterprise IT, network modernization and software development.
* Mission Support: Enhancing operational readiness and mission success through various support services
**Share Price:** Plummeting. Share price is down \~40% since Nov 2024, which aligns in timing with Trump's formation of DOGE announcement. Negative sentiment seems to suggest major concerns for government contracting companies re: DOGE cost cutting initiatives. Fair, I'm sure there's bloat with government contractors. However, this is all despite $CACI posting strong Q2 2025 Earnings. (see below)
$CACI also went as far to call out DOGE as a positive in their recent Q2 2025 earnings deck (01.23.2025)
[PowerPoint Presentation](https://s21.q4cdn.com/708811725/files/doc_financials/2025/q2/CACI-Q2-FY25-Earnings-Slides-vFINAL.pdf) (see slide 6)
Q2 2025 Earnings Summary: From Yahoo (01.22.2025)
*"Revenues of $2.1 billion, up 14.5% YoY*
*Net income of $109.9 million and diluted EPS of $4.88, up 30% YoY*
*Adjusted net income of $134.2 million and adjusted diluted EPS of $5.95, up 36% YoY*
*EBITDA of $232.9 million and EBITDA margin of 11.1%, up 180 bps YoY"*
CEO Message: "Our second quarter reflected another exceptional period for CACI. Financial results were strong across the board with double-digit revenue growth, increased profitability, healthy cash flow, and growing backlog. In addition, we closed and integrated the previously announced strategic acquisitions of Azure Summit and Applied Insight," … "With the momentum we see in our business, we are again able to **raise our fiscal year 2025 guidance**, and we are well on track to achieve the three-year financial targets we introduced at our Investor Day. Our strategy, capabilities, and performance position CACI extremely well to continue providing long-term value for our customers and our shareholders."
[CACI Reports Results for Its Fiscal 2025 Second Quarter and Raises Fiscal Year Guidance](https://finance.yahoo.com/news/caci-reports-results-fiscal-2025-211500175.html)
Enter Congressman **Gilbert Cisneros** (Dem / House / California).
**Gilbert Cisneros** disclosed dozens of trades on Feb 11th, with $CACI standing out as a significant investment of $15-50k (aka upwards of approx. \[30%\] of a congressman's gross annual salary). Note: It seems that a lot of these trades are going under the radar with the sheer number of disclosure / trade volume recently.
Cisneros purchased $CACI on Jan. 31, 2025 at \~$386; price is now \~$338 (-12%).
**Potential Conflict of Interests (via Copilot):**
1. Gilbert Cisneros sits on the **House Committee on Armed Services (HASC)**, responsible in-part for:
* Oversight and legislation related to the DoD, and the US Armed forces
* Defense Policy: Shaping and funding defense policies and programs.
* Military Operations: Overseeing ongoing military operations.
* Acquisition and Industrial Base Policy: Managing defense procurement and industrial base policies.
* Technology Transfer and Export Controls: Regulating the transfer of defense-related technologies
CACI International operates in areas such as defense technology, cybersecurity, and intelligence solutions, which fall under the HASC committee's jurisdiction. The HASC ensures that companies like CACI comply with defense policies and contribute to national security objectives.
2. Additionally, Gilbert Cisneros sits on the **Intelligence & Special Operations subcommittee**, responsible in-part for:
* Military and National Intelligence: Overseeing intelligence operations and programs
* Counter-Terrorism and Counter-Proliferation: Managing efforts to counter terrorism and the spread of weapons of mass destruction.
* Special Operations Forces: Supervising the activities and policies related to special operations force
CACI International provides intelligence and cybersecurity solutions, making it relevant to this subcommittee. The subcommittee ensures that CACI's services align with national security and intelligence strategies.
3. Additionally, Gilbert Cisneros sits on the **Military Personnel subcommittee**, responsible in-part for:
* Military Personnel Policy: Managing policies related to military personnel and their families.
* Military Health Care: Overseeing health care services for military personnel.
* Morale, Welfare, and Recreation: Ensuring the well-being and morale of service members.
* Military Education and Training: Supervising educational programs for military personnel
These committees play a significant role in military modernization. It oversees the Department of Defense (DoD) and is responsible for the annual defense authorization bill, which includes funding and policy decisions related to military modernization.
Previously, Cisneros, as the Undersecretary of Defense for Personnel Readiness (under Biden's term), was involved in the decision to cancel the ongoing work for the military's new MyTravel program, which was to modernize / replace the DefenseTravelSystem. Personally, I don’t know enough to speak more critically about this - but I found it interesting that $CACI does IT network modernization as part of their offered solutions. (see - [Lawmaker summons Pentagon official over canceled travel software](https://www.defensenews.com/congress/2023/07/03/lawmaker-summons-pentagon-official-over-canceled-travel-software/))
**TLDR:** Why is a US Congressman spending 10-30% of their gross annual salary, buying shares in a publicly traded military services company ($CACI) while (1.) the share price is plummeting, and (2.) while also sitting on congressional committees that oversee the same said company.
Yes, this is speculative in nature, and I am not an investment professional.
If you've made it this far reading, I have to say, a part of the reason I'm making this post is my surprise by the lack of attention towards this particular trade disclosure. Congress buying military stocks usually gets a lot of media buzz. For example, Congresswoman **Debbie Wasserman Schulz** disclosed on Nov 20, 2024 she bought shares in **Viasat** (a satellite company with military contracts). Share price skyrocketed +40% over the next few days thereafter - to which I don't believe there was any other coincidental bullish catalysts at that time. Come Dec 2024, Viasat won a significant military contract. All the while Debbie sits on a congress committee impacting military contracts (House Committee on Appropriations). Said simply, I believe there's a correlation between politicians buying shares in military companies, and future good news for said military company.
If you have any value-add due diligence or contrarian viewpoints, feel free to share. I'm hoping this post grabs someone's attention with a deep understanding of this company/industry.