Kforce (NASDAQ:KFRC) Reaches New 12-Month Low - Time to Sell?

Key Points

• Kforce Inc. (NASDAQ:KFRC) reached a new 52-week low, trading as low as $30.44 during recent mid-day trading, which reflects a drop following a previous close of $31.96.
• Analysts have recently downgraded Kforce’s stock ratings, with Truist Financial lowering its price target from $50 to $46, and UBS Group reducing it from $45 to $40.
• Kforce announced a quarterly dividend of $0.39 per share, resulting in an annualized dividend of $1.56, representing a yield of 5.0%.

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 $30.44 and last traded at $30.98, with a volume of 254951 shares. The stock had previously closed at $31.96.

Analysts Set New Price Targets

A number of research analysts recently weighed in on the stock. UBS Group reduced their price objective on shares of Kforce from $45.00 to $40.00 and set a "neutral" rating for the company in a research note on Wednesday, July 30th. Truist Financial cut their target price on shares of Kforce from $50.00 to $46.00 and set a "hold" rating for the company in a research report on Tuesday, July 29th. Finally, Wall Street Zen downgraded shares of Kforce from a "buy" rating to a "hold" rating in a research note on Friday, May 2nd.

Kforce Stock Up 0.4%

The company has a quick ratio of 2.06, a current ratio of 2.06 and a debt-to-equity ratio of 0.16. The company's fifty day moving average is $39.95 and its 200-day moving average is $44.05. The company has a market cap of $602.24 million, a PE ratio of 12.08 and a beta of 0.75.

Kforce (NASDAQ:KFRC - Get Free Report) last issued 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 return on equity of 30.34% and a net margin of 3.59%. The business had revenue of $334.32 million for the quarter, compared to analysts' expectations of $333.78 million. During the same quarter in the prior year, the business earned $0.75 EPS. The company's revenue was down 6.2% compared to the same quarter last year. On average, analysts predict that Kforce Inc. will post 2.7 EPS for the current year.

Kforce Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 26th. Stockholders of record on Friday, September 12th will be issued a $0.39 dividend. The ex-dividend date is Friday, September 12th. This represents a $1.56 dividend on an annualized basis and a dividend yield of 4.8%. Kforce's payout ratio is 65.27%.

Institutional Trading of Kforce

A number of large investors have recently made changes to their positions in the business. Kayne Anderson Rudnick Investment Management LLC boosted its position in Kforce by 0.4% in the 1st quarter. Kayne Anderson Rudnick Investment Management LLC now owns 2,271,022 shares of the business services provider's stock valued at $111,030,000 after buying an additional 9,050 shares during the period. Charles Schwab Investment Management Inc. increased its stake in Kforce by 6.6% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 809,007 shares of the business services provider's stock valued at $39,552,000 after purchasing an additional 50,044 shares in the last quarter. Geode Capital Management LLC increased its stake in Kforce by 0.6% during the 2nd quarter. Geode Capital Management LLC now owns 511,072 shares of the business services provider's stock valued at $21,021,000 after purchasing an additional 3,173 shares in the last quarter. Tributary Capital Management LLC increased its stake in Kforce by 9.3% during the 1st quarter. Tributary Capital Management LLC now owns 462,268 shares of the business services provider's stock valued at $22,600,000 after purchasing an additional 39,338 shares in the last quarter. Finally, Wellington Management Group LLP increased its stake in Kforce by 36.3% during the 4th quarter. Wellington Management Group LLP now owns 297,111 shares of the business services provider's stock valued at $16,846,000 after purchasing an additional 79,100 shares in the last quarter. 92.77% of the stock is currently owned by institutional investors.

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.