Kforce (NASDAQ:KFRC) Hits New 12-Month Low Following Analyst Downgrade

Key Points

• Kforce's stock reached a new 52-week low at $35.47 after UBS Group downgraded its price target from $45.00 to $40.00, maintaining a neutral rating on the stock.
• The company reported a quarterly EPS of $0.59, slightly below analyst expectations, with revenue decreasing by 6.2% year-over-year.
• Kforce plans to pay a quarterly dividend of $0.39 per share on September 26th, which offers an annualized yield of 4.44%.

Kforce Inc. (NASDAQ:KFRC - Get Free Report)'s stock price reached a new 52-week low on Thursday after UBS Group lowered their price target on the stock from $45.00 to $40.00. UBS Group currently has a neutral rating on the stock. Kforce traded as low as $35.47 and last traded at $35.51, with a volume of 115000 shares trading hands. The stock had previously closed at $36.50.

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

Hedge Funds Weigh In On Kforce

Large investors have recently made changes to their positions in the stock. Signaturefd LLC lifted its holdings in shares of Kforce by 1,069.1% in the 1st quarter. Signaturefd LLC now owns 795 shares of the business services provider's stock worth $39,000 after acquiring an additional 727 shares during the last quarter. Point72 Asia Singapore Pte. Ltd. acquired a new position in shares of Kforce in the 4th quarter worth approximately $42,000. Quarry LP acquired a new position in shares of Kforce in the 1st quarter worth approximately $42,000. Meeder Asset Management Inc. lifted its holdings in shares of Kforce by 336.1% in the 1st quarter. Meeder Asset Management Inc. now owns 955 shares of the business services provider's stock worth $47,000 after acquiring an additional 736 shares during the last quarter. Finally, Tower Research Capital LLC TRC lifted its holdings in shares of Kforce by 147.3% in the 4th quarter. Tower Research Capital LLC TRC now owns 1,118 shares of the business services provider's stock worth $63,000 after acquiring an additional 666 shares during the last quarter. 92.77% of the stock is currently owned by institutional investors and hedge funds.

Kforce Stock Performance

The firm's fifty day moving average price is $41.62 and its 200 day moving average price is $45.53. The stock has a market capitalization of $637.89 million, a price-to-earnings ratio of 12.78 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.

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 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 period in the previous year, the company earned $0.75 earnings per share. Kforce's quarterly revenue was down 6.2% on a year-over-year basis. Analysts forecast that Kforce Inc. will post 2.7 EPS for the current fiscal year.

Kforce Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 26th. Shareholders of record on Friday, September 12th will be given a $0.39 dividend. The ex-dividend date of this dividend is Friday, September 12th. This represents a $1.56 dividend on an annualized basis and a dividend yield of 4.6%. Kforce's dividend payout ratio is currently 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.