Adecco (OTCMKTS:AHEXY) Shares Gap Down - Should You Sell?

Key Points

• Adecco shares opened 3.3% lower at $14.22 after previously closing at $14.71, although trading volume was very light at 352 shares.
• Analyst views are mixed: Morgan Stanley maintained an “underweight” rating, while BNP Paribas Exane upgraded the stock to “strong buy.” Overall, Adecco has a consensus “Hold” rating, with two sell ratings, two holds, one buy and one strong buy.
• Adecco exceeded quarterly expectations, reporting $0.35 earnings per share versus the $0.30 estimate and $6.93 billion in revenue versus the $6.83 billion consensus. Analysts expect full-year EPS of $1.42.

Adecco SA (OTCMKTS:AHEXY - Get Free Report) gapped down before the market opened on Wednesday . The stock had previously closed at $14.71, but opened at $14.22. Adecco shares last traded at $14.22, with a volume of 352 shares changing hands.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on the stock. Morgan Stanley reaffirmed an "underweight" rating on shares of Adecco in a research report on Monday. BNP Paribas Exane raised shares of Adecco from a "hold" rating to a "strong-buy" rating in a report on Friday, July 17th. Citigroup downgraded shares of Adecco from a "strong-buy" rating to a "neutral" rating in a research note on Thursday, April 30th. Zacks Research upgraded Adecco from a "strong sell" rating to a "hold" rating in a report on Monday, July 13th. Finally, UBS Group downgraded Adecco from a "hold" rating to a "sell" rating in a report on Monday, May 18th. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, two have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold".

Adecco Trading Down 3.3%

The firm has a market capitalization of $4.94 billion, a PE ratio of 14.08, a price-to-earnings-growth ratio of 1.24 and a beta of 0.94. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.73. The company's 50-day simple moving average is $11.39 and its 200 day simple moving average is $12.00.

Adecco (OTCMKTS:AHEXY - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The business services provider reported $0.35 EPS for the quarter, topping the consensus estimate of $0.30 by $0.05. Adecco had a net margin of 1.25% and a return on equity of 12.78%. The firm had revenue of $6.93 billion during the quarter, compared to analyst estimates of $6.83 billion. As a group, sell-side analysts expect that Adecco SA will post 1.42 EPS for the current year.

Adecco Company Profile

Adecco Group AG is a global human resources and workforce solutions provider headquartered in Zurich, Switzerland. The company specializes in temporary staffing, permanent placement, career transition, and talent development services. Its core business activities include matching job seekers with client companies, managing contingent workforce solutions, and offering consulting services related to workforce management and organizational effectiveness.

Founded in 1996 through the merger of the Swiss companies Adia Interim and ECCO, Adecco has grown into one of the world's largest staffing firms.

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