Maximus’ (MMS) Tech Capabilities and Beaten-Down Valuation Point to M&A Upside

Third Avenue Management, an investment company, disclosed in its Q2 2026 letter that it had entered a position in Maximus, Inc. (NYSE:MMS), a leading government services firm. Maximus, Inc. (MMS) operates software systems for U.S. government agencies like the IRS and TSA. Despite a 4.37% decline over the past month, the stock closed at $55.97 per share.

Over the past year, it has experienced a 36.07% drop. The Q2 2026 letter praised Maximus, Inc. (MMS) for its technological capabilities and professional expertise. Despite concerns related to the AI narrative, government funding, and AI disintermediation fears, the management's guidance and substantial share buyback authorization provide confidence.

Maximus has made significant investments in artificial intelligence, particularly in its Veterans Affairs benefits administration. Notably, the fund holds Maximus, Inc. (MMS) among its top holdings, though it believes other AI stocks may offer greater upside potential.