Kelly Services (NASDAQ:KELYA) Reaches New 12-Month High - What's Next?

Key Points

• Kelly Services shares reached a new 52-week high of $16.18, above the $15.00 consensus price target. Analyst sentiment remains mixed, with an overall “Hold” rating.
• The company reported quarterly EPS of $0.03, missing the $0.07 consensus estimate, while revenue of $1.04 billion exceeded forecasts. Kelly Services also paid a quarterly dividend of $0.075 per share, representing a 1.9% yield.
• Institutional investors own approximately 76.34% of the stock, with several hedge funds increasing their positions; meanwhile, an executive sold 29,999 shares in May.

Kelly Services, Inc. (NASDAQ:KELYA - Get Free Report) shares hit a new 52-week high during trading on Tuesday . The company traded as high as $16.18 and last traded at $16.1530, with a volume of 16270 shares trading hands. The stock had previously closed at $15.72.

Analysts Set New Price Targets

KELYA has been the topic of a number of recent analyst reports. Zacks Research upgraded shares of Kelly Services from a "strong sell" rating to a "hold" rating in a research note on Monday, April 20th. Weiss Ratings lowered shares of Kelly Services from a "sell (d)" rating to a "sell (d-)" rating in a research report on Monday, May 11th. Finally, Barrington Research restated an "outperform" rating on shares of Kelly Services in a research report on Monday, June 29th. Two equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $15.00.

Kelly Services Price Performance

The company has a fifty day simple moving average of $12.55 and a 200-day simple moving average of $10.59. The company has a market cap of $560.58 million, a P/E ratio of -2.14, a PEG ratio of 1.15 and a beta of 0.84. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.59 and a quick ratio of 1.59.

Kelly Services (NASDAQ:KELYA - Get Free Report) last issued its earnings results on Thursday, May 7th. The business services provider reported $0.03 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.07 by ($0.04). Kelly Services had a positive return on equity of 3.07% and a negative net margin of 6.44%.The company had revenue of $1.04 billion during the quarter, compared to analyst estimates of $1.02 billion. On average, sell-side analysts predict that Kelly Services, Inc. will post 1.01 earnings per share for the current year.

Kelly Services Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 2nd. Shareholders of record on Monday, May 18th were issued a dividend of $0.075 per share. This represents a $0.30 annualized dividend and a yield of 1.9%. The ex-dividend date was Monday, May 18th. Kelly Services's payout ratio is presently -3.95%.

Insider Buying and Selling

In other Kelly Services news, EVP Vanessa Peterson Williams sold 29,999 shares of the firm's stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $9.78, for a total value of $293,390.22. Following the completion of the transaction, the executive vice president directly owned 82,355 shares in the company, valued at $805,431.90. This trade represents a 26.70% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Corporate insiders own 5.40% of the company's stock.

Institutional Investors Weigh In On Kelly Services

Several hedge funds have recently made changes to their positions in the company. Private Management Group Inc. grew its position in Kelly Services by 101.8% during the 4th quarter. Private Management Group Inc. now owns 1,268,649 shares of the business services provider's stock worth $11,164,000 after purchasing an additional 640,076 shares in the last quarter. Charles Schwab Investment Management Inc. boosted its position in shares of Kelly Services by 39.9% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,908,900 shares of the business services provider's stock worth $16,798,000 after buying an additional 544,309 shares during the period. Millennium Management LLC boosted its position in shares of Kelly Services by 594.2% in the fourth quarter. Millennium Management LLC now owns 623,723 shares of the business services provider's stock worth $5,489,000 after buying an additional 533,873 shares during the period. Fifth Third Bancorp purchased a new position in shares of Kelly Services during the first quarter valued at $4,371,000. Finally, JPMorgan Chase & Co. raised its position in Kelly Services by 1,328.6% during the third quarter. JPMorgan Chase & Co. now owns 412,211 shares of the business services provider's stock valued at $5,408,000 after buying an additional 383,357 shares during the period. Hedge funds and other institutional investors own 76.34% of the company's stock.

About Kelly Services

Kelly Services, Inc is a global workforce solutions provider specializing in talent acquisition and staffing services across a wide range of industries. The company offers temporary staffing, permanent placement, outsourcing solutions, and consulting services to help organizations address their workforce needs. Its service offerings are designed to support clients in areas such as administrative support, information technology, engineering, science, education, healthcare, and industrial sectors.

Founded in 1946 by William Russell Kelly, Kelly Services has grown from a small local staffing firm into an international organization.

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