Barrington Research Reaffirms Outperform Rating for Kelly Services (NASDAQ:KELYA)

Key Points

• Barrington Research has reaffirmed its outperform rating for Kelly Services (NASDAQ: KELYA), with a target price of $25.00, indicating a potential upside of 84.77% from the current price.
• Kelly Services reported $1.10 billion in revenue and $0.54 EPS for the last quarter, slightly below analyst expectations, with a negative net margin of 0.14%.
• 76.34% of Kelly Services' stock is owned by institutional investors, including significant stakes acquired by Millennium Management and D.E. Shaw & Co. in recent quarters.

Kelly Services (NASDAQ:KELYA - Get Free Report)'s stock had its "outperform" rating reaffirmed by research analysts at Barrington Research in a report issued on Friday,Benzinga reports. They currently have a $25.00 target price on the business services provider's stock. Barrington Research's target price would suggest a potential upside of 84.77% from the stock's previous close.

Separately, Wall Street Zen downgraded Kelly Services from a "strong-buy" rating to a "buy" rating in a research report on Saturday, September 6th. One equities research analyst has rated the stock with a Buy rating, Based on data from MarketBeat, the stock currently has an average rating of "Buy" and an average price target of $25.00.

Kelly Services Stock Performance

NASDAQ KELYA traded down $0.28 during trading on Friday, hitting $13.53. 53,648 shares of the company's stock traded hands, compared to its average volume of 304,474. The company has a debt-to-equity ratio of 0.06, a quick ratio of 1.52 and a current ratio of 1.52. The stock has a market capitalization of $476.96 million, a price-to-earnings ratio of -67.63, a PEG ratio of 0.47 and a beta of 0.89. Kelly Services has a 12-month low of $10.80 and a 12-month high of $22.44. The business has a 50 day moving average of $13.34 and a 200-day moving average of $12.59.

Kelly Services (NASDAQ:KELYA - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The business services provider reported $0.54 EPS for the quarter, meeting analysts' consensus estimates of $0.54. The company had revenue of $1.10 billion for the quarter, compared to analysts' expectations of $1.12 billion. Kelly Services had a negative net margin of 0.14% and a positive return on equity of 5.65%. Kelly Services has set its Q3 2025 guidance at EPS. As a group, equities research analysts anticipate that Kelly Services will post 2.45 earnings per share for the current fiscal year.

Insider Activity

In related news, SVP Daniel H. Malan sold 7,650 shares of Kelly Services stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $14.40, for a total transaction of $110,160.00. Following the completion of the sale, the senior vice president owned 87,631 shares of the company's stock, valued at approximately $1,261,886.40. This trade represents a 8.03% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 48.09% of the company's stock.

Institutional Investors Weigh In On Kelly Services

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Millennium Management LLC grew its stake in Kelly Services by 2,251.9% in the 4th quarter. Millennium Management LLC now owns 1,095,238 shares of the business services provider's stock worth $15,268,000 after buying an additional 1,048,670 shares in the last quarter. Nuveen LLC bought a new stake in shares of Kelly Services during the 1st quarter worth $8,739,000. Royce & Associates LP bought a new stake in shares of Kelly Services during the 1st quarter worth $5,947,000. CSM Advisors LLC purchased a new position in Kelly Services in the second quarter worth $4,807,000. Finally, D. E. Shaw & Co. Inc. increased its stake in Kelly Services by 567.8% in the fourth quarter. D. E. Shaw & Co. Inc. now owns 350,849 shares of the business services provider's stock valued at $4,891,000 after acquiring an additional 298,310 shares during the last quarter. 76.34% of the stock is owned by hedge funds and other institutional investors.

Kelly Services Company Profile

Kelly Services, Inc, together with its subsidiaries, provides workforce solutions to various industries. The company operates through five segments: Professional & Industrial; Science, Engineering & Technology; Education; Outsourcing & Consulting; and International. The Professional & Industrial segment delivers staffing, outcome-based, and permanent placement services providing administrative, accounting, and finance; light industrial; contact center staffing; and other workforce solutions.

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