Noble Financial Issues Pessimistic Outlook for RGP Earnings

Key Points

• Noble Financial has downgraded its earnings per share estimates for Resources Connection, projecting a loss of ($0.05) for Q2 2026, down from a previous estimate of $0.04.
• The stock has received a mix of ratings, with two analysts giving a Buy rating and two a Sell rating, resulting in an average rating of "Hold".
• Recently, insiders have made significant trades, including a sale of 10,000 shares by a director and a purchase of 23,015 shares by the CEO, indicating varying confidence in the company's future.

Resources Connection, Inc. (NASDAQ:RGP - Free Report) - Equities researchers at Noble Financial decreased their Q2 2026 earnings per share estimates for shares of Resources Connection in a report released on Monday, October 13th. Noble Financial analyst J. Gomes now forecasts that the company will post earnings of ($0.05) per share for the quarter, down from their previous forecast of $0.04. Noble Financial currently has a "Outperform" rating on the stock. Noble Financial also issued estimates for Resources Connection's Q3 2026 earnings at ($0.16) EPS, Q4 2026 earnings at $0.09 EPS, FY2026 earnings at ($0.16) EPS and FY2027 earnings at $0.29 EPS.

Other equities research analysts also recently issued reports about the company. Wall Street Zen upgraded Resources Connection from a "strong sell" rating to a "hold" rating in a report on Saturday, July 26th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Resources Connection in a report on Wednesday, October 8th. Finally, Northcoast Research assumed coverage on Resources Connection in a report on Wednesday, September 24th. They issued a "buy" rating and a $7.00 price objective for the company. Two equities research analysts have rated the stock with a Buy rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $6.00.

Resources Connection Stock Performance

NASDAQ RGP opened at $4.40 on Thursday. Resources Connection has a one year low of $4.23 and a one year high of $9.96. The stock has a 50-day moving average of $4.92 and a 200 day moving average of $5.25. The company has a market capitalization of $146.92 million, a price-to-earnings ratio of -0.77, a PEG ratio of 9.44 and a beta of 0.62.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. GAMMA Investing LLC raised its holdings in shares of Resources Connection by 3,712.9% during the 1st quarter. GAMMA Investing LLC now owns 4,728 shares of the company's stock worth $31,000 after acquiring an additional 4,604 shares in the last quarter. Nisa Investment Advisors LLC raised its holdings in shares of Resources Connection by 171.2% during the 2nd quarter. Nisa Investment Advisors LLC now owns 8,466 shares of the company's stock worth $45,000 after acquiring an additional 5,344 shares in the last quarter. Strs Ohio purchased a new stake in shares of Resources Connection during the 1st quarter worth approximately $48,000. R Squared Ltd purchased a new stake in shares of Resources Connection during the 2nd quarter worth approximately $57,000. Finally, PNC Financial Services Group Inc. raised its holdings in shares of Resources Connection by 398.6% during the 2nd quarter. PNC Financial Services Group Inc. now owns 11,602 shares of the company's stock worth $62,000 after acquiring an additional 9,275 shares in the last quarter. 93.23% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In related news, Director Anthony Cherbak sold 10,000 shares of the business's stock in a transaction that occurred on Friday, October 10th. The stock was sold at an average price of $4.50, for a total transaction of $45,000.00. Following the completion of the transaction, the director directly owned 15,000 shares in the company, valued at approximately $67,500. The trade was a 40.00% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Kate W. Duchene acquired 23,015 shares of the business's stock in a transaction that occurred on Wednesday, October 15th. The shares were bought at an average price of $4.36 per share, with a total value of $100,345.40. Following the completion of the purchase, the chief executive officer owned 590,234 shares in the company, valued at $2,573,420.24. This trade represents a 4.06% increase in their position. The disclosure for this purchase can be found here. Insiders own 7.91% of the company's stock.

Resources Connection Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, September 26th. Investors of record on Friday, August 29th were paid a dividend of $0.07 per share. The ex-dividend date was Friday, August 29th. This represents a $0.28 dividend on an annualized basis and a dividend yield of 6.4%. Resources Connection's payout ratio is -4.90%.

About Resources Connection

Resources Connection, Inc provides consulting services to business customers under the Resources Global Professionals name in North America, Europe, and the Asia Pacific. The company offers services in the areas of transactions, including integration and divestitures, bankruptcy/restructuring, going public readiness and support, financial process optimization, and system implementation; and regulations, such as accounting regulations, internal audit and compliance, data privacy and security, healthcare compliance, and regulatory compliance.

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