Adecco (OTCMKTS:AHEXY) Shares Gap Down - Time to Sell?

Key Points

• Adecco shares fell 8.4%, opening at $13.28 versus the prior close of $13.94, with the latest trading price at $13.31.
• Analyst sentiment is mixed but averages to a “Hold” rating: one analyst rates the stock Strong Buy, one Buy, three Hold, and two Sell.
• The company exceeded quarterly expectations, reporting $0.35 in EPS versus a $0.30 estimate and $6.93 billion in revenue versus a $6.83 billion consensus forecast.

Adecco SA (OTCMKTS:AHEXY - Get Free Report)'s share price gapped down prior to trading on Monday. The stock had previously closed at $13.94, but opened at $13.28. Adecco shares last traded at $13.31, with a volume of 577 shares changing hands.

Analysts Set New Price Targets

Several equities analysts have weighed in on the company. Zacks Research raised Adecco from a "strong sell" rating to a "hold" rating in a report on Monday, July 13th. BNP Paribas Exane upgraded Adecco from a "hold" rating to a "strong-buy" rating in a research note on Friday, July 17th. Jefferies Financial Group upgraded Adecco from a "moderate sell" rating to a "hold" rating in a research note on Thursday, September 10th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating on shares of Adecco in a research report on Wednesday, September 9th. Finally, Morgan Stanley reiterated an "underweight" rating on shares of Adecco in a research note on Tuesday, September 8th. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, Adecco presently has an average rating of "Hold".

Adecco Trading Down 8.4%

The firm's 50-day moving average price is $14.57 and its 200-day moving average price is $12.29. The company has a quick ratio of 1.15, a current ratio of 1.15 and a debt-to-equity ratio of 0.86. The company has a market cap of $4.56 billion, a P/E ratio of 13.01, a price-to-earnings-growth ratio of 1.37 and a beta of 0.94.

Adecco (OTCMKTS:AHEXY - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The business services provider reported $0.35 EPS for the quarter, topping the consensus estimate of $0.30 by $0.05. Adecco had a net margin of 1.25% and a return on equity of 12.67%. The company had revenue of $6.93 billion during the quarter, compared to the consensus estimate of $6.83 billion. As a group, equities research analysts expect that Adecco SA will post 1.45 earnings per share for the current fiscal year.

Adecco Company Profile

Adecco is a global workforce solutions and talent advisory company headquartered in Zurich, Switzerland. It helps organizations recruit, place and manage employees across a range of industries, while also supporting job seekers with career opportunities, skills development and workforce guidance.

The company's services include temporary and permanent staffing, recruitment, career transition and outplacement, talent development, outsourcing and workforce consulting. Adecco operates through brands and business lines that include Adecco for staffing and recruitment, Akkodis for technology and engineering consulting, and LHH for professional recruitment, leadership development and career transition services.

Adecco traces its history to the 1996 merger of the Swiss staffing company Adia and France's Ecco.

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