Adecco (OTCMKTS:AHEXY) Shares Gap Up - Still a Buy?

Key Points

• Adecco shares gapped higher, opening at $15.13 versus a prior close of $14.66, while trading volume remained light at 846 shares.
• Analyst sentiment is mixed: BNP Paribas Exane upgraded the stock to “strong buy,” while UBS and Morgan Stanley remain bearish. MarketBeat’s overall consensus rating is “Hold.”
• Adecco beat quarterly expectations, reporting EPS of $0.35 versus $0.30 expected and revenue of $6.93 billion versus $6.83 billion. The Public Employees Retirement System of Ohio also established a new stake worth approximately $7.35 million.

Adecco SA (OTCMKTS:AHEXY - Get Free Report) gapped up before the market opened on Wednesday . The stock had previously closed at $14.66, but opened at $15.13. Adecco shares last traded at $15.13, with a volume of 846 shares.

Analyst Ratings Changes

A number of research analysts have recently commented on AHEXY shares. BNP Paribas Exane upgraded Adecco from a "hold" rating to a "strong-buy" rating in a research note on Friday, July 17th. UBS Group lowered Adecco from a "hold" rating to a "sell" rating in a research note on Monday, May 18th. Morgan Stanley restated an "underweight" rating on shares of Adecco in a report on Monday, August 10th. Citigroup downgraded Adecco from a "strong-buy" rating to a "neutral" rating in a research note on Thursday, April 30th. Finally, Zacks Research upgraded shares of Adecco from a "strong sell" rating to a "hold" rating in a research report on Monday, July 13th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, Adecco presently has an average rating of "Hold".

Adecco Stock Up 0.7%

The firm has a 50 day moving average of $12.28 and a 200 day moving average of $12.01. The firm has a market cap of $5.26 billion, a price-to-earnings ratio of 14.98, a PEG ratio of 1.23 and a beta of 0.94. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.73.

Adecco (OTCMKTS:AHEXY - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The business services provider reported $0.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.30 by $0.05. The firm had revenue of $6.93 billion for the quarter, compared to analyst estimates of $6.83 billion. Adecco had a return on equity of 12.78% and a net margin of 1.25%. As a group, sell-side analysts predict that Adecco SA will post 1.42 earnings per share for the current year.

Institutional Inflows and Outflows

A hedge fund recently bought a new stake in Adecco stock. Public Employees Retirement System of Ohio purchased a new position in Adecco SA (OTCMKTS:AHEXY - Free Report) in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 488,940 shares of the business services provider's stock, valued at approximately $7,354,000. Public Employees Retirement System of Ohio owned 0.14% of Adecco at the end of the most recent quarter.

About Adecco

Adecco Group AG is a global human resources and workforce solutions provider headquartered in Zurich, Switzerland. The company specializes in temporary staffing, permanent placement, career transition, and talent development services. Its core business activities include matching job seekers with client companies, managing contingent workforce solutions, and offering consulting services related to workforce management and organizational effectiveness.

Founded in 1996 through the merger of the Swiss companies Adia Interim and ECCO, Adecco has grown into one of the world's largest staffing firms.

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