Kforce (NASDAQ:KFRC) Hits New 1-Year Low After Analyst Downgrade

Key Points

• Kforce shares reached a new 52-week low after Truist Financial downgraded their price target from $46.00 to $35.00, maintaining a hold rating on the stock.
• Several other analysts have also adjusted their ratings, with UBS lowering its target to $40.00 and Zacks upgrading to a hold rating, while Kforce currently has an average rating of "Hold" and a consensus target price of $48.67.
• Kforce reported Q2 earnings of $0.59 per share, marginally missing estimates, and announced a quarterly dividend with an annualized yield of 5.6%, indicating a payout ratio of 65.27%.

Kforce Inc. (NASDAQ:KFRC - Get Free Report) hit a new 52-week low during mid-day trading on Tuesday after Truist Financial lowered their price target on the stock from $46.00 to $35.00. Truist Financial currently has a hold rating on the stock. Kforce traded as low as $27.57 and last traded at $27.91, with a volume of 16886 shares traded. The stock had previously closed at $27.92.

A number of other research firms have also commented on KFRC. UBS Group lowered their price objective on shares of Kforce from $45.00 to $40.00 and set a "neutral" rating on the stock in a research note on Wednesday, July 30th. Zacks Research upgraded shares of Kforce from a "strong sell" rating to a "hold" rating in a research report on Monday, September 29th. One investment analyst has rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $48.67.

Institutional Investors Weigh In On Kforce

A number of institutional investors have recently modified their holdings of the stock. GAMMA Investing LLC boosted its stake in shares of Kforce by 752.7% during the 3rd quarter. GAMMA Investing LLC now owns 1,441 shares of the business services provider's stock valued at $43,000 after buying an additional 1,272 shares during the period. Tower Research Capital LLC TRC raised its holdings in Kforce by 273.0% in the 2nd quarter. Tower Research Capital LLC TRC now owns 1,865 shares of the business services provider's stock worth $77,000 after acquiring an additional 1,365 shares during the period. Vident Advisory LLC increased its holdings in shares of Kforce by 13.9% during the 2nd quarter. Vident Advisory LLC now owns 14,797 shares of the business services provider's stock worth $609,000 after purchasing an additional 1,810 shares during the period. Man Group plc bought a new position in shares of Kforce during the 2nd quarter worth about $808,000. Finally, Engineers Gate Manager LP increased its holdings in shares of Kforce by 37.1% during the 2nd quarter. Engineers Gate Manager LP now owns 38,078 shares of the business services provider's stock worth $1,566,000 after purchasing an additional 10,308 shares during the period. Institutional investors and hedge funds own 92.77% of the company's stock.

Kforce Stock Performance

The firm's fifty day moving average price is $31.08 and its 200-day moving average price is $38.26. The company has a current ratio of 2.06, a quick ratio of 2.06 and a debt-to-equity ratio of 0.16. The company has a market cap of $520.96 million, a P/E ratio of 10.45 and a beta of 0.66.

Kforce (NASDAQ:KFRC - Get Free Report) last posted its quarterly earnings data on Monday, July 28th. The business services provider reported $0.59 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.60 by ($0.01). The company had revenue of $334.32 million for the quarter, compared to the consensus estimate of $333.78 million. Kforce had a return on equity of 30.34% and a net margin of 3.59%.The business's revenue for the quarter was down 6.2% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.75 EPS. Kforce has set its Q3 2025 guidance at 0.530-0.61 EPS. As a group, research analysts forecast that Kforce Inc. will post 2.7 EPS for the current fiscal year.

Kforce Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, September 26th. Investors of record on Friday, September 12th were paid a $0.39 dividend. The ex-dividend date of this dividend was Friday, September 12th. This represents a $1.56 dividend on an annualized basis and a yield of 5.6%. Kforce's payout ratio is presently 65.27%.

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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