Kelly Services (NASDAQ:KELYA) Stock Price Crosses Above 200 Day Moving Average - Should You Sell?

Key Points

• Kelly Services shares rose above their 200-day moving average, trading as high as $12.16 and last changing hands at $11.77. The move comes after a period of trading below the long-term trendline.
• Analyst sentiment is mixed but leans cautious: the stock currently has a consensus Hold rating and a $15.00 average price target. Recent actions included upgrades from Zacks Research and Wall Street Zen, alongside a downgrade from Weiss Ratings.
• The company recently missed earnings expectations, posting $0.03 EPS versus the $0.07 estimate, though revenue came in slightly above forecasts at $1.04 billion. Kelly Services also paid a quarterly dividend of $0.075 per share, implying a 2.5% annualized yield.

Kelly Services, Inc. (NASDAQ:KELYA - Get Free Report)'s stock price passed above its two hundred day moving average during trading on Friday . The stock has a two hundred day moving average of $9.46 and traded as high as $12.16. Kelly Services shares last traded at $11.77, with a volume of 308,498 shares changing hands.

Analyst Ratings Changes

Several equities research analysts have recently commented on the stock. Zacks Research upgraded shares of Kelly Services from a "strong sell" rating to a "hold" rating in a report on Monday, April 20th. Weiss Ratings downgraded shares of Kelly Services from a "sell (d)" rating to a "sell (d-)" rating in a research report on Monday, May 11th. Barrington Research cut their price objective on shares of Kelly Services from $16.00 to $15.00 and set an "outperform" rating on the stock in a research report on Friday, February 13th. Finally, Wall Street Zen raised shares of Kelly Services from a "sell" rating to a "hold" rating in a research report on Sunday, February 22nd. Two analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $15.00.

Kelly Services Price Performance

The company has a quick ratio of 1.59, a current ratio of 1.59 and a debt-to-equity ratio of 0.13. The stock's 50-day simple moving average is $9.84 and its two-hundred day simple moving average is $9.46. The company has a market capitalization of $408.07 million, a price-to-earnings ratio of -1.55, a PEG ratio of 0.90 and a beta of 0.85.

Kelly Services (NASDAQ:KELYA - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The business services provider reported $0.03 earnings per share 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 for the quarter, compared to analyst estimates of $1.02 billion. Equities research analysts predict that Kelly Services, Inc. will post 1.01 earnings per share for the current year.

Kelly Services Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 2nd. Investors of record on Monday, May 18th were given a dividend of $0.075 per share. This represents a $0.30 annualized dividend and a yield of 2.5%. The ex-dividend date was Monday, May 18th. Kelly Services's dividend payout ratio (DPR) is presently -3.95%.

Insider Activity

In related 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 transaction of $293,390.22. Following the completion of the sale, the executive vice president directly owned 82,355 shares in the company, valued at approximately $805,431.90. This trade represents a 26.70% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Christopher D. Layden acquired 10,100 shares of the stock in a transaction dated Tuesday, March 24th. The stock was acquired at an average cost of $8.80 per share, with a total value of $88,880.00. Following the purchase, the chief executive officer owned 382,513 shares of the company's stock, valued at approximately $3,366,114.40. This trade represents a 2.71% increase in their position. The SEC filing for this purchase provides additional information. 5.40% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Quarry LP raised its holdings in Kelly Services by 173.2% in the third quarter. Quarry LP now owns 1,970 shares of the business services provider's stock valued at $26,000 after acquiring an additional 1,249 shares in the last quarter. CANADA LIFE ASSURANCE Co acquired a new stake in Kelly Services in the fourth quarter valued at approximately $30,000. Meeder Asset Management Inc. acquired a new stake in Kelly Services in the fourth quarter valued at approximately $42,000. Tower Research Capital LLC TRC raised its holdings in Kelly Services by 83.5% in the second quarter. Tower Research Capital LLC TRC now owns 4,324 shares of the business services provider's stock valued at $51,000 after acquiring an additional 1,967 shares in the last quarter. Finally, State of Alaska Department of Revenue raised its holdings in Kelly Services by 284.2% in the fourth quarter. State of Alaska Department of Revenue now owns 7,220 shares of the business services provider's stock valued at $63,000 after acquiring an additional 5,341 shares in the last quarter. 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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