Tieton Capital Management LLC Acquires New Position in Resources Connection, Inc. $RGP

Key Points

• Tieton Capital Management acquired 2.82 million shares of Resources Connection, valued at approximately $12.0 million, giving it an 8.18% stake and making RGP its 10th-largest holding. Institutional investors collectively own 93.23% of the company.
• Analyst sentiment remains mixed, with RGP receiving an overall “Hold” consensus and a $7.00 price target. The stock opened at $4.42, compared with a 52-week range of $3.06 to $5.55.
• Resources Connection reported a quarterly loss of $0.07 per share on $106.11 million in revenue, while maintaining a quarterly dividend of $0.07 per share, equivalent to a 6.3% annualized yield.

Tieton Capital Management LLC bought a new position in shares of Resources Connection, Inc. (NASDAQ:RGP - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm bought 2,817,636 shares of the company's stock, valued at approximately $11,975,000. Resources Connection comprises 3.4% of Tieton Capital Management LLC's holdings, making the stock its 10th largest holding. Tieton Capital Management LLC owned approximately 8.18% of Resources Connection as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors and hedge funds also recently made changes to their positions in the company. BlackRock Inc. bought a new stake in shares of Resources Connection during the second quarter worth $4,825,000. IMC Chicago LLC bought a new stake in shares of Resources Connection during the 2nd quarter worth approximately $69,000. Bank of New York Mellon Corp bought a new position in shares of Resources Connection in the second quarter valued at $830,000. State of Wyoming acquired a new stake in Resources Connection in the second quarter valued at $148,000. Finally, Marquette Asset Management LLC bought a new position in Resources Connection during the second quarter worth about $309,000. Institutional investors and hedge funds own 93.23% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms have commented on RGP. Wall Street Zen downgraded shares of Resources Connection from a "hold" rating to a "sell" rating in a report on Saturday, August 1st. Zacks Research upgraded shares of Resources Connection from a "strong sell" rating to a "hold" rating in a research note on Tuesday, June 9th. Finally, Weiss Ratings raised shares of Resources Connection from a "sell (e+)" rating to a "sell (d-)" rating in a report on Monday, June 15th. Two investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Resources Connection has an average rating of "Hold" and a consensus price target of $7.00.

Resources Connection Stock Performance

Shares of NASDAQ:RGP opened at $4.42 on Thursday. Resources Connection, Inc. has a 52 week low of $3.06 and a 52 week high of $5.55. The firm's fifty day moving average is $4.35 and its 200-day moving average is $4.14. The firm has a market cap of $152.22 million, a PE ratio of -3.68 and a beta of 0.54.

Resources Connection (NASDAQ:RGP - Get Free Report) last posted its quarterly earnings results on Wednesday, July 22nd. The company reported ($0.07) earnings per share for the quarter, topping analysts' consensus estimates of ($0.08) by $0.01. Resources Connection had a negative return on equity of 4.63% and a negative net margin of 8.98%.The business had revenue of $106.11 million for the quarter, compared to the consensus estimate of $106.76 million. Sell-side analysts forecast that Resources Connection, Inc. will post -0.44 EPS for the current year.

Resources Connection Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Thursday, September 3rd will be paid a $0.07 dividend. This represents a $0.28 dividend on an annualized basis and a yield of 6.3%. The ex-dividend date is Thursday, September 3rd. Resources Connection's payout ratio is presently -23.33%.

Resources Connection 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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