Kforce (NASDAQ:KFRC) Shares Gap Up - Time to Buy?

Key Points

• Kforce shares gapped up Tuesday, opening at $32.48 after a $30.92 close, while analysts maintain a consensus Hold rating with an average price target of $38.50.
• Kforce reported Q4 EPS of $0.43, missing estimates of $0.47 while revenue of $332.02 million slightly beat expectations, and management set Q1 guidance of $0.37–$0.45 EPS.
• Dividend increase: Kforce raised its quarterly payout to $0.40 (annualized $1.60) for a 4.9% yield, and institutional investors own about 92.8% of the stock.

Kforce Inc. (NASDAQ:KFRC - Get Free Report)'s stock price gapped up before the market opened on Tuesday . The stock had previously closed at $30.92, but opened at $32.48. Kforce shares last traded at $32.6160, with a volume of 25,007 shares trading hands.

Analysts Set New Price Targets

A number of research analysts have issued reports on the company. Zacks Research cut Kforce from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, January 28th. UBS Group boosted their price target on Kforce from $34.50 to $39.00 and gave the stock a "neutral" rating in a research note on Tuesday, February 3rd. William Blair raised Kforce from a "market perform" rating to an "outperform" rating in a report on Tuesday. Finally, Truist Financial lifted their price objective on Kforce from $35.00 to $38.00 and gave the stock a "hold" rating in a report on Tuesday, January 27th. One research analyst has rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $38.50.

Kforce Stock Up 5.9%

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 has a market cap of $596.99 million, a P/E ratio of 12.23 and a beta of 0.49. The company has a fifty day moving average of $28.26 and a 200 day moving average of $29.92.

Kforce (NASDAQ:KFRC - Get Free Report) last issued its quarterly earnings data on Monday, February 2nd. The business services provider reported $0.43 EPS for the quarter, missing the consensus estimate of $0.47 by ($0.04). Kforce had a return on equity of 30.34% and a net margin of 3.59%.The firm had revenue of $332.02 million during the quarter, compared to the consensus estimate of $328.79 million. During the same period in the previous year, the firm earned $0.60 EPS. The business's revenue was down 3.4% on a year-over-year basis. Kforce has set its Q1 2026 guidance at 0.370-0.450 EPS. On average, research analysts anticipate that Kforce Inc. will post 2.7 earnings per share for the current fiscal year.

Kforce Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, March 20th. Shareholders of record on Friday, March 6th were issued a dividend of $0.40 per share. This is a boost from Kforce's previous quarterly dividend of $0.39. This represents a $1.60 annualized dividend and a yield of 4.9%. The ex-dividend date of this dividend was Friday, March 6th. Kforce's dividend payout ratio is presently 81.22%.

Institutional Trading of Kforce

Several hedge funds have recently bought and sold shares of the stock. Hsbc Holdings PLC grew its holdings in Kforce by 134.2% during the fourth quarter. Hsbc Holdings PLC now owns 38,552 shares of the business services provider's stock valued at $1,201,000 after purchasing an additional 22,093 shares during the period. Invesco Ltd. grew its holdings in Kforce by 20.1% during the fourth quarter. Invesco Ltd. now owns 39,381 shares of the business services provider's stock valued at $1,218,000 after purchasing an additional 6,596 shares during the period. Mercer Global Advisors Inc. ADV grew its holdings in Kforce by 97.1% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 13,650 shares of the business services provider's stock valued at $422,000 after purchasing an additional 6,724 shares during the period. Vident Advisory LLC grew its holdings in Kforce by 2.8% during the fourth quarter. Vident Advisory LLC now owns 19,724 shares of the business services provider's stock valued at $610,000 after purchasing an additional 544 shares during the period. Finally, EP Wealth Advisors LLC bought a new stake in Kforce during the fourth quarter valued at about $269,000. Institutional investors own 92.77% of the company's stock.

About Kforce

Kforce Inc is a professional staffing services firm headquartered in Tampa, Florida, trading on NASDAQ under the symbol KFRC. The company specializes in connecting organizations with skilled talent in technology, finance and accounting, and related business functions. Through a nationwide network of offices, Kforce partners with clients across industries to deliver both flexible contract staffing and direct hire placement solutions.

Kforce's core offerings include temporary staffing, permanent placement, and project-based consulting engagements.

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