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

Key Points

• Kelly Services shares hit a new 52-week high on Thursday, trading as high as $15.19 before ending near $14.95. The move came with relatively light volume of 28,267 shares.
• Analyst sentiment is mixed but leans neutral: recent updates included a Zacks upgrade to hold and Barrington’s reiterated outperform, while Weiss Ratings lowered its view. MarketBeat reports a consensus rating of Hold with a $15.00 target price.
• The company’s latest quarter beat revenue expectations but missed on earnings, reporting $0.03 EPS versus $0.07 expected on $1.04 billion in revenue. Kelly Services also recently paid a $0.075 quarterly dividend, equal to a 2.0% annual yield.

Kelly Services, Inc. (NASDAQ:KELYA - Get Free Report)'s share price reached a new 52-week high during trading on Thursday . The stock traded as high as $15.19 and last traded at $14.9540, with a volume of 28267 shares trading hands. The stock had previously closed at $14.33.

Analyst Ratings Changes

Several equities research analysts recently issued reports on the company. Zacks Research upgraded Kelly Services from a "strong sell" rating to a "hold" rating in a research note on Monday, April 20th. Barrington Research reiterated an "outperform" rating on shares of Kelly Services in a research report on Monday, June 29th. Finally, Weiss Ratings lowered Kelly Services from a "sell (d)" rating to a "sell (d-)" rating in a research note on Monday, May 11th. Two research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $15.00.

Kelly Services Stock Performance

The company has a fifty day moving average price of $11.66 and a two-hundred day moving average price of $10.22. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.59 and a quick ratio of 1.59. The company has a market capitalization of $532.07 million, a P/E ratio of -2.02, a PEG ratio of 1.07 and a beta of 0.84.

Kelly Services (NASDAQ:KELYA - Get Free Report) last issued its quarterly earnings data 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). The business had revenue of $1.04 billion during the quarter, compared to the consensus estimate of $1.02 billion. Kelly Services had a negative net margin of 6.44% and a positive return on equity of 3.07%. Equities analysts forecast that Kelly Services, Inc. will post 1.01 earnings per share for the current fiscal year.

Kelly Services Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 2nd. Stockholders of record on Monday, May 18th were paid a $0.075 dividend. The ex-dividend date of this dividend was Monday, May 18th. This represents a $0.30 annualized dividend and a dividend yield of 2.0%. Kelly Services's dividend payout ratio is presently -3.95%.

Insider Activity

In related news, EVP Vanessa Peterson Williams sold 29,999 shares of Kelly Services stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $9.78, for a total value of $293,390.22. Following the transaction, the executive vice president directly owned 82,355 shares of the company's stock, valued at $805,431.90. The trade was a 26.70% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 5.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the company. Private Management Group Inc. increased its position in shares of Kelly Services by 101.8% during the fourth quarter. Private Management Group Inc. now owns 1,268,649 shares of the business services provider's stock worth $11,164,000 after buying an additional 640,076 shares during the period. Charles Schwab Investment Management Inc. lifted its holdings in 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 valued at $16,798,000 after buying an additional 544,309 shares during the period. Millennium Management LLC boosted its position in Kelly Services by 594.2% during the fourth quarter. Millennium Management LLC now owns 623,723 shares of the business services provider's stock valued at $5,489,000 after acquiring an additional 533,873 shares during the last quarter. Fifth Third Bancorp acquired a new stake in Kelly Services during the 1st quarter worth about $4,371,000. Finally, JPMorgan Chase & Co. raised its position in shares of Kelly Services by 1,328.6% in the 3rd quarter. JPMorgan Chase & Co. now owns 412,211 shares of the business services provider's stock worth $5,408,000 after acquiring an additional 383,357 shares in the last quarter. 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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