Resources Connection (NASDAQ:RGP) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded Resources Connection from “hold” to “sell.” Analyst coverage remains mixed, with the stock carrying a consensus “Hold” rating and a $7.00 target price.
• RGP shares opened at $4.37, with a 52-week range of $3.06 to $5.55 and a market capitalization of approximately $150.5 million.
• The company’s latest quarter showed a narrower-than-expected loss of $0.07 per share, but revenue of $106.11 million fell slightly short of estimates and the company reported negative net margins and return on equity.

Resources Connection (NASDAQ:RGP - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued on Saturday.

Other equities analysts have also issued reports about the company. Weiss Ratings raised Resources Connection from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Monday, June 15th. Zacks Research raised shares of Resources Connection from a "strong sell" rating to a "hold" rating in a research report on Tuesday, June 9th. Two equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $7.00.

Resources Connection Stock Performance

Shares of NASDAQ RGP opened at $4.37 on Friday. Resources Connection has a 1 year low of $3.06 and a 1 year high of $5.55. The stock's 50-day simple moving average is $4.41 and its 200-day simple moving average is $4.16. The firm has a market cap of $150.50 million, a price-to-earnings ratio of -3.64 and a beta of 0.55.

Resources Connection (NASDAQ:RGP - Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The company reported ($0.07) EPS for the quarter, beating analysts' consensus estimates of ($0.08) by $0.01. The firm had revenue of $106.11 million during the quarter, compared to the consensus estimate of $106.76 million. Resources Connection had a negative return on equity of 4.63% and a negative net margin of 8.98%. As a group, research analysts predict that Resources Connection will post -0.44 EPS for the current year.

Hedge Funds Weigh In On Resources Connection

Several large investors have recently modified their holdings of RGP. AQR Capital Management LLC increased its holdings in Resources Connection by 13.0% in the first quarter. AQR Capital Management LLC now owns 714,138 shares of the company's stock valued at $4,670,000 after buying an additional 82,099 shares during the last quarter. Goldman Sachs Group Inc. lifted its holdings in Resources Connection by 30.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 262,248 shares of the company's stock worth $1,715,000 after buying an additional 61,580 shares during the last quarter. Empowered Funds LLC lifted its holdings in Resources Connection by 7.3% during the 1st quarter. Empowered Funds LLC now owns 178,769 shares of the company's stock worth $1,169,000 after buying an additional 12,231 shares during the last quarter. Strs Ohio bought a new position in Resources Connection during the 1st quarter worth approximately $48,000. Finally, XTX Topco Ltd acquired a new position in shares of Resources Connection in the 2nd quarter worth approximately $118,000. Institutional investors 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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