Peapod Lane Capital LLC Acquires New Position in Resources Connection, Inc. $RGP

Key Points

• Peapod Lane Capital LLC opened a new position in Resources Connection (NASDAQ: RGP) in Q4, buying 358,954 shares worth about $1.81 million, equal to roughly 1.07% ownership and about 1.5% of the fund's portfolio (its 28th largest holding).
• Several analysts have recently downgraded RGP (Wall Street Zen to "sell" and Zacks to "strong sell"), leaving an average MarketBeat rating of "Hold" with a $7.00 target while the stock trades near $3.90.
• Resources Connection missed quarterly expectations with ($0.09) EPS vs. ($0.05) expected, posts a negative net margin (~-20.16%), and has a market cap of about $134 million as the shares trade near their 12‑month low.

Peapod Lane Capital LLC bought a new stake in Resources Connection, Inc. (NASDAQ:RGP - Free Report) in the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor bought 358,954 shares of the company's stock, valued at approximately $1,809,000. Resources Connection makes up about 1.5% of Peapod Lane Capital LLC's investment portfolio, making the stock its 28th largest position. Peapod Lane Capital LLC owned approximately 1.07% of Resources Connection as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other large investors have also recently bought and sold shares of the company. U.S. Capital Wealth Advisors LLC bought a new stake in Resources Connection in the fourth quarter valued at approximately $50,000. SG Americas Securities LLC increased its stake in Resources Connection by 54.4% in the fourth quarter. SG Americas Securities LLC now owns 27,584 shares of the company's stock valued at $139,000 after purchasing an additional 9,719 shares in the last quarter. Assenagon Asset Management S.A. bought a new stake in Resources Connection in the fourth quarter valued at approximately $1,140,000. Wealth Enhancement Advisory Services LLC bought a new stake in Resources Connection in the fourth quarter valued at approximately $64,000. Finally, JPMorgan Chase & Co. increased its stake in Resources Connection by 7.9% in the third quarter. JPMorgan Chase & Co. now owns 498,882 shares of the company's stock valued at $2,519,000 after purchasing an additional 36,352 shares in the last quarter. Institutional investors own 93.23% of the company's stock.

Analyst Ratings Changes

Several equities research analysts have commented on the stock. Wall Street Zen downgraded shares of Resources Connection from a "hold" rating to a "sell" rating in a research note on Saturday, April 11th. Zacks Research downgraded shares of Resources Connection from a "hold" rating to a "strong sell" rating in a research note on Monday, April 13th. Two research analysts have rated the stock with a Buy rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Hold" and an average target price of $7.00.

Resources Connection Trading Down 4.2%

Shares of RGP opened at $3.90 on Friday. Resources Connection, Inc. has a 12 month low of $3.06 and a 12 month high of $6.30. The firm has a fifty day simple moving average of $3.72 and a 200 day simple moving average of $4.36. The stock has a market capitalization of $133.89 million, a price-to-earnings ratio of -1.32 and a beta of 0.45.

Resources Connection (NASDAQ:RGP - Get Free Report) last announced its earnings results on Wednesday, April 8th. The company reported ($0.09) EPS for the quarter, missing the consensus estimate of ($0.05) by ($0.04). Resources Connection had a negative return on equity of 0.55% and a negative net margin of 20.16%.The business had revenue of $107.93 million for the quarter, compared to analyst estimates of $108.19 million. As a group, research analysts predict that Resources Connection, Inc. will post -0.29 earnings per share for the current fiscal year.

Resources Connection Company Profile

Resources Connection, Inc NASDAQ: RGP is a publicly traded professional services firm that specializes in providing independent consulting and project-based teams to help organizations manage critical business challenges. Operating under the RGP brand, the company connects highly skilled consultants with clients seeking support in areas such as finance and accounting, legal and risk management, supply chain optimization, technology implementation, and digital transformation.

RGP's consultants bring specific industry and functional expertise to engagements, working on a flexible basis that allows clients to scale resources up or down as needed.

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