Kforce (NASDAQ:KFRC) Shares Up 5.5% - Should You Buy?

Key Points

• Kforce shares rose 5.5% on Thursday, reaching an intraday high of $59.37 and trading around $58.56, though volume was well below average.
• Analyst sentiment is mixed: William Blair upgraded the stock to outperform and Robert W. Baird raised its price target, but Zacks cut its rating to hold. The consensus rating remains Hold with an average price target of $39.67.
• The company recently posted better-than-expected quarterly results, with EPS of $0.46 versus $0.40 expected and revenue of $330.36 million. Kforce also pays a 2.7% dividend yield, but its payout ratio is relatively high at 80.81%.

Kforce Inc. (NASDAQ:KFRC - Get Free Report) rose 5.5% during trading on Thursday . The company traded as high as $59.37 and last traded at $58.5590. Approximately 38,811 shares changed hands during mid-day trading, a decline of 84% from the average session volume of 248,677 shares. The stock had previously closed at $55.49.

Analysts Set New Price Targets

A number of research analysts have commented on the stock. William Blair upgraded shares of Kforce from a "market perform" rating to an "outperform" rating in a research note on Tuesday, April 21st. Robert W. Baird upped their price objective on Kforce from $40.00 to $42.00 and gave the company an "outperform" rating in a research note on Tuesday, April 28th. Finally, Zacks Research cut Kforce from a "strong-buy" rating to a "hold" rating in a report on Monday, June 29th. Two investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $39.67.

Kforce Stock Up 6.0%

The firm has a market cap of $1.05 billion, a price-to-earnings ratio of 21.95 and a beta of 0.87. The company has a debt-to-equity ratio of 0.16, a quick ratio of 2.06 and a current ratio of 2.06. The business's 50-day moving average is $46.82 and its 200-day moving average is $36.76.

Kforce (NASDAQ:KFRC - Get Free Report) last released its quarterly earnings results on Monday, April 27th. The business services provider reported $0.46 EPS for the quarter, beating analysts' consensus estimates of $0.40 by $0.06. The firm had revenue of $330.36 million for the quarter, compared to analyst estimates of $329.32 million. Kforce had a net margin of 3.59% and a return on equity of 30.34%. The company's revenue for the quarter was up .1% compared to the same quarter last year. During the same period in the previous year, the business earned $0.45 earnings per share. Kforce has set its Q2 2026 guidance at 0.670-0.750 EPS. On average, equities analysts predict that Kforce Inc. will post 2.7 EPS for the current year.

Kforce Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Friday, June 12th were issued a $0.40 dividend. This represents a $1.60 annualized dividend and a dividend yield of 2.7%. The ex-dividend date of this dividend was Friday, June 12th. Kforce's payout ratio is presently 80.81%.

Institutional Investors Weigh In On Kforce

Hedge funds and other institutional investors have recently bought and sold shares of the business. Parallel Advisors LLC boosted its stake in Kforce by 427.2% in the fourth quarter. Parallel Advisors LLC now owns 854 shares of the business services provider's stock worth $26,000 after purchasing an additional 692 shares in the last quarter. Kestra Advisory Services LLC acquired a new stake in shares of Kforce in the fourth quarter valued at $31,000. Allworth Financial LP raised its holdings in shares of Kforce by 212.3% in the fourth quarter. Allworth Financial LP now owns 1,240 shares of the business services provider's stock valued at $38,000 after buying an additional 843 shares during the last quarter. EverSource Wealth Advisors LLC raised its holdings in shares of Kforce by 44.3% in the fourth quarter. EverSource Wealth Advisors LLC now owns 1,313 shares of the business services provider's stock valued at $41,000 after buying an additional 403 shares during the last quarter. Finally, GAMMA Investing LLC lifted its position in Kforce by 29.6% during the 4th quarter. GAMMA Investing LLC now owns 1,868 shares of the business services provider's stock worth $58,000 after buying an additional 427 shares in the last quarter. 92.77% of the stock is owned by institutional investors and hedge funds.

Kforce Company Profile

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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