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

Key Points

• Adecco shares gapped up from a prior close of $13.4360 to an opening and last-traded price of $14.25, although trading volume was just 627 shares.
• Analyst sentiment remains mixed: Morgan Stanley and UBS downgraded the stock, while BNP Paribas Exane upgraded it to “strong buy.” MarketBeat’s overall analyst rating is “Hold.”
• Adecco beat quarterly expectations, reporting $0.29 in earnings per share versus a $0.27 consensus estimate and $6.62 billion in revenue versus $6.55 billion expected. Analysts forecast full-year EPS of $1.35.

Adecco SA (OTCMKTS:AHEXY - Get Free Report)'s stock price gapped up before the market opened on Tuesday . The stock had previously closed at $13.4360, but opened at $14.25. Adecco shares last traded at $14.25, with a volume of 627 shares trading hands.

Analysts Set New Price Targets

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

Adecco Stock Performance

The company has a 50-day moving average of $10.46 and a 200 day moving average of $12.00. 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 firm has a market capitalization of $5.07 billion, a PE ratio of 13.90, a PEG ratio of 1.04 and a beta of 0.98.

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