Adecco (OTCMKTS:AHEXY) Shares Gap Up - Time to Buy?

Key Points

• Adecco shares gapped up at the open, rising from a prior close of $10.25 to $11.16 and last trading around $11.20, a move of about 4.6%.
• Analyst sentiment remains cautious, with several recent downgrades from firms including Citigroup, Morgan Stanley, Zacks Research, and UBS. The stock’s overall average analyst rating is currently “Reduce”.
• Recent earnings topped expectations, as Adecco reported EPS of $0.29 versus estimates of $0.27 and revenue of $6.62 billion versus $6.55 billion expected. For the year, analysts expect the company to earn 1.41 EPS.

Adecco SA (OTCMKTS:AHEXY - Get Free Report) shares gapped up before the market opened on Monday . The stock had previously closed at $10.25, but opened at $11.16. Adecco shares last traded at $11.20, with a volume of 5,208 shares.

Wall Street Analyst Weigh In

A number of analysts have weighed in on AHEXY shares. Citigroup downgraded shares of Adecco from a "strong-buy" rating to a "neutral" rating in a research report on Thursday, April 30th. Morgan Stanley downgraded shares of Adecco from a "cautious" rating to an "underweight" rating in a research note on Tuesday, June 9th. Zacks Research downgraded Adecco from a "hold" rating to a "strong sell" rating in a report on Friday, May 15th. Finally, UBS Group lowered Adecco from a "hold" rating to a "sell" rating in a research report on Monday, May 18th. Two research analysts have rated the stock with a Buy rating, three have issued a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Reduce".

Adecco Trading Up 4.6%

The company has a market cap of $3.90 billion, a price-to-earnings ratio of 10.69, a P/E/G ratio of 0.92 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 firm's 50-day moving average price is $10.13 and its 200 day moving average price is $12.16.

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%. As a group, equities analysts expect that Adecco SA will post 1.41 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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