Adecco (OTCMKTS:AHEXY) Shares Gap Up - Should You Buy?

Key Points

• Adecco shares gapped up at the open, rising from a prior close of $12.3740 to an opening price of $13.49 and last trading at $13.47.
• Analyst sentiment is mixed, but the consensus remains “Hold.” Recent changes included upgrades from BNP Paribas Exane and Zacks Research, while Citigroup, Morgan Stanley, and UBS issued downgrades.
• The company reported better-than-expected quarterly results, with EPS of $0.29 versus estimates of $0.27 and revenue of $6.62 billion versus $6.55 billion expected. Adecco also carries a P/E ratio of 12.82 and a market cap of about $4.68 billion.

Adecco SA (OTCMKTS:AHEXY - Get Free Report) shares gapped up prior to trading on Wednesday . The stock had previously closed at $12.3740, but opened at $13.49. Adecco shares last traded at $13.47, with a volume of 1,230 shares traded.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on AHEXY shares. BNP Paribas Exane raised shares of Adecco from a "hold" rating to a "strong-buy" rating in a report on Friday, July 17th. Citigroup cut Adecco from a "strong-buy" rating to a "neutral" rating in a report on Thursday, April 30th. Morgan Stanley downgraded Adecco from a "cautious" rating to an "underweight" rating in a report on Tuesday, June 9th. Zacks Research upgraded shares of Adecco from a "strong sell" rating to a "hold" rating in a research report on Monday, July 13th. Finally, UBS Group cut Adecco from a "hold" rating to a "sell" rating in a research note on Monday, May 18th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold".

Adecco Stock Performance

The stock has a market capitalization of $4.68 billion, a P/E ratio of 12.82, a price-to-earnings-growth ratio of 0.96 and a beta of 0.98. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 0.73. The company has a 50-day moving average price of $10.15 and a two-hundred day moving average price of $12.04.

Adecco (OTCMKTS:AHEXY - Get Free Report) last released its earnings results on Wednesday, May 13th. The business services provider reported $0.29 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.27 by $0.02. The company had revenue of $6.62 billion for the quarter, compared to the consensus estimate of $6.55 billion. Adecco had a net margin of 1.31% and a return on equity of 12.09%. On average, equities analysts forecast that Adecco SA will post 1.35 earnings per share 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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