Resources Connection, Inc. (NASDAQ:RGP) Announces Quarterly Dividend of $0.07

Key Points

• Resources Connection declared a quarterly dividend of $0.07 per share, payable June 19 to shareholders of record on May 21, which equates to an annualized yield of about 6.8%.
• The dividend's sustainability is in doubt: RGP reported negative EPS (‑$0.09 last quarter), analysts forecast ≈‑$0.13 next year, and while the current payout ratio is 53.8%, the expected future payout ratio is deeply negative (≈‑215%), suggesting the company may not be able to cover the $0.28 annual dividend.
• The stock trades around $4.11 with a market cap of about $141 million, a 52‑week range of $3.06–$6.30 and a negative P/E (‑1.39), reflecting weak profitability.

Resources Connection, Inc. (NASDAQ:RGP - Get Free Report) announced a quarterly dividend on Tuesday, April 28th. Shareholders of record on Thursday, May 21st will be paid a dividend of 0.07 per share on Friday, June 19th. This represents a c) dividend on an annualized basis and a dividend yield of 6.8%. The ex-dividend date of this dividend is Thursday, May 21st.

Resources Connection has decreased its dividend payment by an average of 0.1%annually over the last three years. Resources Connection has a dividend payout ratio of 53.8% indicating that its dividend is sufficiently covered by earnings. Analysts expect Resources Connection to earn ($0.13) per share next year, which means the company may not be able to cover its $0.28 annual dividend with an expected future payout ratio of -215.4%.

Resources Connection Price Performance

Shares of NASDAQ:RGP opened at $4.11 on Wednesday. Resources Connection has a fifty-two week low of $3.06 and a fifty-two week high of $6.30. The business has a 50-day moving average of $3.73 and a two-hundred day moving average of $4.34. The stock has a market capitalization of $141.10 million, a P/E ratio of -1.39 and a beta of 0.45.

Resources Connection (NASDAQ:RGP - Get Free Report) last announced its quarterly earnings results on Wednesday, April 8th. The company reported ($0.09) earnings per share for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.04). Resources Connection had a negative return on equity of 0.55% and a negative net margin of 20.16%.The company had revenue of $107.93 million during the quarter, compared to analyst estimates of $108.19 million. As a group, research analysts expect that Resources Connection will post -0.29 EPS for the current fiscal year.

Hedge Funds Weigh In On Resources Connection

Large investors have recently made changes to their positions in the business. Eurizon Capital SGR S.p.A. acquired a new position in shares of Resources Connection during the 4th quarter worth about $31,000. Intesa Sanpaolo Wealth Management bought a new position in Resources Connection during the fourth quarter valued at about $33,000. Strs Ohio bought a new position in Resources Connection during the first quarter valued at about $48,000. Quarry LP increased its stake in Resources Connection by 4,995.7% during the third quarter. Quarry LP now owns 9,529 shares of the company's stock valued at $48,000 after acquiring an additional 9,342 shares during the period. Finally, U.S. Capital Wealth Advisors LLC bought a new position in Resources Connection during the fourth quarter valued at about $50,000. Institutional investors and hedge funds own 93.23% of the company's stock.

About Resources Connection

Resources Connection, Inc NASDAQ: RGP is a publicly traded professional services firm that specializes in providing independent consulting and project-based teams to help organizations manage critical business challenges. Operating under the RGP brand, the company connects highly skilled consultants with clients seeking support in areas such as finance and accounting, legal and risk management, supply chain optimization, technology implementation, and digital transformation.

RGP's consultants bring specific industry and functional expertise to engagements, working on a flexible basis that allows clients to scale resources up or down as needed.

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