UBS Group Issues Pessimistic Forecast for Kforce (NASDAQ:KFRC) Stock Price

Key Points

• UBS Group has reduced Kforce's price target from $45.00 to $40.00, maintaining a "neutral" rating for the stock, which reflects a potential upside of 5.81% from its current trading price.
• Kforce reported quarterly earnings of $0.59 per share, slightly below the consensus estimate of $0.60, alongside a 6.2% decrease in year-over-year revenue.
• Institutional investors hold a significant stake in Kforce, with 92.77% of the company's stock owned by institutional shareholders.

Kforce (NASDAQ:KFRC - Get Free Report) had its target price cut by investment analysts at UBS Group from $45.00 to $40.00 in a research note issued to investors on Wednesday,Benzinga reports. The firm currently has a "neutral" rating on the business services provider's stock. UBS Group's price target points to a potential upside of 16.97% from the stock's current price.

Several other equities analysts have also recently commented on KFRC. Wall Street Zen cut shares of Kforce from a "buy" rating to a "hold" rating in a research report on Friday, May 2nd. Truist Financial dropped their target price on shares of Kforce from $50.00 to $46.00 and set a "hold" rating on the stock in a research report on Tuesday, July 29th.

Kforce Stock Down 1.9%

NASDAQ KFRC traded down $0.65 during trading hours on Wednesday, hitting $34.20. The company's stock had a trading volume of 352,795 shares, compared to its average volume of 158,763. Kforce has a 52 week low of $33.28 and a 52 week high of $67.33. The company has a market capitalization of $637.09 million, a PE ratio of 12.76 and a beta of 0.75. 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's 50-day simple moving average is $41.62 and its two-hundred day simple moving average is $45.61.

Kforce (NASDAQ:KFRC - Get Free Report) last announced its quarterly earnings results on Monday, July 28th. The business services provider reported $0.59 earnings per share 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 during the quarter, compared to the consensus estimate of $333.78 million. During the same period in the previous year, the business posted $0.75 EPS. Kforce's revenue was down 6.2% compared to the same quarter last year. Research analysts anticipate that Kforce will post 2.7 EPS for the current fiscal year.

Insider Activity

In related news, Director David L. Dunkel purchased 1,000 shares of the firm's stock in a transaction dated Monday, May 5th. The stock was bought at an average price of $37.80 per share, for a total transaction of $37,800.00. Following the purchase, the director directly owned 517,329 shares in the company, valued at approximately $19,555,036.20. This trade represents a 0.19% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 4.40% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Kforce

Several large investors have recently modified their holdings of the stock. American Century Companies Inc. raised its holdings in Kforce by 8.5% during the 4th quarter. American Century Companies Inc. now owns 84,844 shares of the business services provider's stock valued at $4,811,000 after acquiring an additional 6,677 shares during the period. Sei Investments Co. grew its position in shares of Kforce by 3.4% in the fourth quarter. Sei Investments Co. now owns 53,609 shares of the business services provider's stock valued at $3,039,000 after purchasing an additional 1,759 shares in the last quarter. KLP Kapitalforvaltning AS purchased a new position in shares of Kforce in the fourth quarter valued at $692,000. LPL Financial LLC grew its position in shares of Kforce by 33.2% in the fourth quarter. LPL Financial LLC now owns 12,194 shares of the business services provider's stock valued at $691,000 after purchasing an additional 3,039 shares in the last quarter. Finally, JPMorgan Chase & Co. grew its position in shares of Kforce by 25.2% in the fourth quarter. JPMorgan Chase & Co. now owns 52,511 shares of the business services provider's stock valued at $2,977,000 after purchasing an additional 10,565 shares in the last quarter. Hedge funds and other institutional investors own 92.77% of the company's stock.

Kforce Company Profile

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.