Robert Half (NYSE:RHI) Shares Gap Up - Should You Buy?

Key Points

• Shares of Robert Half gapped up from $28.02 to $29.20 and were last around $29.49, trading up roughly 5.2% on about 730,000 shares of volume.
• Analysts are mixed and the consensus rating is Reduce with an average target of $31.75 (two Buys, four Holds, four Sells), reflecting a wide range of price targets and recent downgrades and upgrades.
• The company pays a quarterly dividend ($0.59) that annualizes to $2.36 for a 8.0% yield, but the dividend payout ratio is 177.44%, which may raise questions about sustainability.

Shares of Robert Half Inc. (NYSE:RHI - Get Free Report) gapped up before the market opened on Tuesday . The stock had previously closed at $28.02, but opened at $29.20. Robert Half shares last traded at $29.4920, with a volume of 730,121 shares.

Analyst Ratings Changes

RHI has been the topic of several analyst reports. Barclays decreased their price objective on Robert Half from $36.00 to $25.00 and set an "equal weight" rating on the stock in a report on Friday, March 6th. Truist Financial raised their price objective on Robert Half from $35.00 to $40.00 and gave the stock a "buy" rating in a report on Friday, January 30th. Weiss Ratings restated a "sell (d)" rating on shares of Robert Half in a report on Monday, December 29th. William Blair upgraded Robert Half from a "market perform" rating to an "outperform" rating in a report on Tuesday. Finally, BMO Capital Markets cut their target price on Robert Half from $35.00 to $32.00 and set a "market perform" rating on the stock in a research report on Tuesday, February 17th. Two investment analysts have rated the stock with a Buy rating, four have given a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat.com, Robert Half has a consensus rating of "Reduce" and an average target price of $31.75.

Robert Half Trading Up 5.2%

The firm has a market capitalization of $3.02 billion, a PE ratio of 22.14 and a beta of 0.85. The firm has a 50-day moving average of $24.77 and a two-hundred day moving average of $27.21.

Robert Half (NYSE:RHI - Get Free Report) last issued its earnings results on Thursday, January 29th. The business services provider reported $0.32 earnings per share for the quarter, topping the consensus estimate of $0.30 by $0.02. The business had revenue of $1.30 billion for the quarter, compared to analyst estimates of $1.29 billion. Robert Half had a return on equity of 10.26% and a net margin of 2.47%.The business's quarterly revenue was down 5.8% on a year-over-year basis. During the same period last year, the company posted $0.53 EPS. Equities research analysts expect that Robert Half Inc. will post 1.53 earnings per share for the current fiscal year.

Robert Half Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, March 13th. Investors of record on Wednesday, February 25th were given a $0.59 dividend. This represents a $2.36 annualized dividend and a dividend yield of 8.0%. The ex-dividend date of this dividend was Wednesday, February 25th. Robert Half's dividend payout ratio (DPR) is 177.44%.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in RHI. AQR Capital Management LLC raised its position in Robert Half by 190.5% in the second quarter. AQR Capital Management LLC now owns 6,201,209 shares of the business services provider's stock valued at $254,560,000 after purchasing an additional 4,066,328 shares during the period. Capital World Investors raised its position in Robert Half by 460.5% in the third quarter. Capital World Investors now owns 4,341,133 shares of the business services provider's stock valued at $147,512,000 after purchasing an additional 3,566,645 shares during the period. Brickwood Asset Management LLP purchased a new position in Robert Half in the fourth quarter valued at about $34,908,000. Norges Bank purchased a new position in Robert Half in the fourth quarter valued at about $33,832,000. Finally, Pzena Investment Management LLC raised its position in Robert Half by 38.2% in the fourth quarter. Pzena Investment Management LLC now owns 4,394,851 shares of the business services provider's stock valued at $119,364,000 after purchasing an additional 1,214,883 shares during the period. 92.41% of the stock is owned by hedge funds and other institutional investors.

About Robert Half

Robert Half International Inc, founded in 1948 by Robert Half, is a global professional staffing and consulting firm headquartered in Menlo Park, California. As a pioneer in specialized staffing, the company has built a reputation for matching skilled professionals with leading organizations across a range of industries. Robert Half's shares trade on the New York Stock Exchange under the ticker RHI, reflecting its position as one of the longest‐standing and best‐known firms in the staffing sector.

The company offers a comprehensive suite of services, including temporary staffing, permanent placement, and consulting solutions.

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