Kforce Inc. (NASDAQ:KFRC) to Issue $0.39 Quarterly Dividend

Key Points

• Kforce Inc. has declared a quarterly dividend of $0.39 per share, which translates to an annualized dividend of $1.56 and a yield of 4.06%, with an ex-dividend date set for September 12th.
• The company reported earnings of $0.59 per share for the last quarter, missing expectations and showing a revenue decline of 6.2% compared to the previous year.
• Kforce's stock price has dropped 18.1% recently, closing at $38.40, against a 52-week high of $71.48, indicating significant volatility in its share price.

Kforce Inc. (NASDAQ:KFRC - Get Free Report) declared a quarterly dividend on Tuesday, July 29th, Wall Street Journal reports. Stockholders of record on Friday, September 12th will be paid a dividend of 0.39 per share by the business services provider on Friday, September 26th. This represents a $1.56 annualized dividend and a dividend yield of 4.06%. The ex-dividend date of this dividend is Friday, September 12th.

Kforce has a payout ratio of 43.1% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Kforce to earn $3.30 per share next year, which means the company should continue to be able to cover its $1.52 annual dividend with an expected future payout ratio of 46.1%.

Kforce Trading Down 18.1%

KFRC traded down $8.51 during trading hours on Tuesday, reaching $38.40. The company's stock had a trading volume of 973,706 shares, compared to its average volume of 151,920. The stock has a market cap of $715.39 million, a PE ratio of 14.33 and a beta of 0.75. The company has a debt-to-equity ratio of 0.16, a current ratio of 2.06 and a quick ratio of 2.06. Kforce has a fifty-two week low of $35.50 and a fifty-two week high of $71.48. The business's 50-day moving average is $42.02 and its 200-day moving average is $46.09.

Kforce (NASDAQ:KFRC - Get Free Report) last announced its earnings results on Monday, July 28th. The business services provider reported $0.59 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.60 by ($0.01). The firm had revenue of $334.32 million during the quarter, compared to analysts' expectations of $333.78 million. Kforce had a net margin of 3.59% and a return on equity of 30.34%. The firm's revenue for the quarter was down 6.2% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.75 EPS. As a group, equities research analysts predict that Kforce will post 2.7 earnings per share for the current fiscal year.

Insider Activity

In other news, Director David L. Dunkel acquired 1,000 shares of the company's stock in a transaction on Monday, May 5th. The shares were bought at an average price of $37.80 per share, with a total value of $37,800.00. Following the completion of the acquisition, the director owned 517,329 shares in the company, valued at $19,555,036.20. This trade represents a 0.19% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 4.40% of the company's stock.

Hedge Funds Weigh In On Kforce

Several hedge funds have recently made changes to their positions in the company. Goldman Sachs Group Inc. raised its position in shares of Kforce by 64.9% during the 1st quarter. Goldman Sachs Group Inc. now owns 251,712 shares of the business services provider's stock worth $12,306,000 after purchasing an additional 99,050 shares during the last quarter. Millennium Management LLC raised its position in shares of Kforce by 3.5% during the 1st quarter. Millennium Management LLC now owns 133,829 shares of the business services provider's stock worth $6,543,000 after purchasing an additional 4,511 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Kforce by 5.8% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 39,416 shares of the business services provider's stock worth $1,927,000 after purchasing an additional 2,159 shares during the last quarter. AQR Capital Management LLC raised its position in shares of Kforce by 9.7% during the 1st quarter. AQR Capital Management LLC now owns 22,785 shares of the business services provider's stock worth $1,114,000 after purchasing an additional 2,017 shares during the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of Kforce by 4.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 10,841 shares of the business services provider's stock worth $530,000 after purchasing an additional 474 shares during the last quarter. Hedge funds and other institutional investors own 92.77% of the company's stock.

Analyst Ratings Changes

A number of analysts have recently weighed in on the company. UBS Group upped their price objective on Kforce from $40.00 to $45.00 and gave the stock a "neutral" rating in a research report on Thursday, July 24th. Truist Financial cut their target price on Kforce from $50.00 to $46.00 and set a "hold" rating on the stock in a research report on Tuesday. Finally, Wall Street Zen lowered Kforce from a "buy" rating to a "hold" rating in a research report on Friday, May 2nd.

About Kforce

Kforce Inc provides professional staffing services and solutions in the United States. It operates through two segments, Technology, and Finance and Accounting (FA). The Technology segment provides talent solutions to its clients primarily in the areas of information technology, such as systems/applications architecture and development, data management and analytics, business and artificial intelligence, machine learning, project and program management, and network architecture and security.

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