Adecco (OTCMKTS:AHEXY) Shares Gap Down - Time to Sell?

Key Points

• Adecco shares gapped down—the stock opened at $11.97 after closing at $12.50 and last traded at $12.05, and is trading below its 50-day ($12.70) and 200-day ($13.82) moving averages.
• Quarterly results beat estimates—Adecco reported $0.44 EPS vs $0.35 expected and $7.01B revenue vs $6.95B, although net margin remained low at 1.28%.
• Analyst stance and valuation—consensus is "Hold" (2 Buy, 4 Hold) after mixed revisions (Jefferies cut to moderate sell while Zacks and UBS moved to Hold); market cap is ~$4.06B with a P/E of 12.11 and expected FY EPS of about 1.55.

Adecco SA (OTCMKTS:AHEXY - Get Free Report)'s share price gapped down before the market opened on Tuesday . The stock had previously closed at $12.50, but opened at $11.97. Adecco shares last traded at $12.05, with a volume of 6,673 shares traded.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the stock. Jefferies Financial Group lowered shares of Adecco from a "hold" rating to a "moderate sell" rating in a research report on Thursday, January 8th. Zacks Research upgraded shares of Adecco from a "strong sell" rating to a "hold" rating in a research report on Monday, January 12th. Finally, UBS Group upgraded shares of Adecco from a "strong sell" rating to a "hold" rating in a research report on Friday, March 6th. Two investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold".

Adecco Price Performance

The company's fifty day moving average is $12.70 and its two-hundred day moving average is $13.82. The firm has a market capitalization of $4.06 billion, a price-to-earnings ratio of 12.11, a price-to-earnings-growth ratio of 0.97 and a beta of 1.07. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.75.

Adecco (OTCMKTS:AHEXY - Get Free Report) last issued its earnings results on Wednesday, February 25th. The business services provider reported $0.44 EPS for the quarter, beating the consensus estimate of $0.35 by $0.09. Adecco had a net margin of 1.28% and a return on equity of 12.02%. The firm had revenue of $7.01 billion during the quarter, compared to the consensus estimate of $6.95 billion. Equities research analysts anticipate that Adecco SA will post 1.55 earnings per share for the current fiscal year.

About Adecco

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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