Kforce (NASDAQ:KFRC) Reaches New 1-Year Low - Here's Why

Key Points

• Kforce Inc. (NASDAQ:KFRC) shares have hit a new 52-week low, trading at $30.42, with analysts recently lowering their price targets for the stock.
• The company reported a quarterly earnings miss with $0.59 EPS, compared to the consensus estimate of $0.60, and a year-over-year revenue decline of 6.2%.
• Kforce has announced a quarterly dividend of $0.39 per share, which results in an annualized yield of 5.1%, with a payout ratio of 65.27%.

Shares of Kforce Inc. (NASDAQ:KFRC - Get Free Report) hit a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $30.42 and last traded at $30.49, with a volume of 207535 shares traded. The stock had previously closed at $31.05.

Wall Street Analysts Forecast Growth

Several research analysts recently commented on KFRC shares. UBS Group dropped their price target on Kforce from $45.00 to $40.00 and set a "neutral" rating for the company in a research report on Wednesday, July 30th. Truist Financial dropped their price target on Kforce from $50.00 to $46.00 and set a "hold" rating for the company in a research report on Tuesday, July 29th. One equities research analyst has rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $52.33.

Kforce Stock Down 3.1%

The company has a 50-day simple moving average of $36.14 and a 200-day simple moving average of $41.26. The firm has a market cap of $565.13 million, a PE ratio of 11.34 and a beta of 0.68. 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 (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 the consensus estimate of $0.60 by ($0.01). Kforce had a net margin of 3.59% and a return on equity of 30.34%. The business had revenue of $334.32 million for the quarter, compared to analysts' expectations of $333.78 million. During the same quarter last year, the firm earned $0.75 EPS. The firm's quarterly revenue was down 6.2% on a year-over-year basis. Kforce has set its Q3 2025 guidance at 0.530-0.61 EPS. Analysts expect that Kforce Inc. will post 2.7 earnings per share for the current fiscal year.

Kforce Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 26th. Shareholders of record on Friday, September 12th will be given a dividend of $0.39 per share. This represents a $1.56 annualized dividend and a dividend yield of 5.1%. The ex-dividend date is Friday, September 12th. Kforce's payout ratio is 65.27%.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of KFRC. Ameriprise Financial Inc. boosted its position in shares of Kforce by 27.8% during the fourth quarter. Ameriprise Financial Inc. now owns 75,245 shares of the business services provider's stock valued at $4,266,000 after buying an additional 16,378 shares during the period. BNP Paribas Financial Markets boosted its holdings in shares of Kforce by 71.3% in the fourth quarter. BNP Paribas Financial Markets now owns 29,222 shares of the business services provider's stock valued at $1,657,000 after purchasing an additional 12,161 shares during the period. Deutsche Bank AG boosted its holdings in shares of Kforce by 22.1% in the fourth quarter. Deutsche Bank AG now owns 105,360 shares of the business services provider's stock valued at $5,974,000 after purchasing an additional 19,080 shares during the period. D. E. Shaw & Co. Inc. boosted its holdings in shares of Kforce by 46.8% in the fourth quarter. D. E. Shaw & Co. Inc. now owns 32,663 shares of the business services provider's stock valued at $1,852,000 after purchasing an additional 10,416 shares during the period. Finally, Gotham Asset Management LLC purchased a new stake in shares of Kforce in the fourth quarter valued at approximately $247,000. Hedge funds and other institutional investors own 92.77% of the company's stock.

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.