Korn/Ferry International (NYSE:KFY) to Buyback $331.40 million in Shares

Key Points

• Korn/Ferry International has announced a stock repurchase program authorized by its board, with plans to buy back $331.40 million worth of shares, constituting up to 8.7% of its outstanding stock.
• The company recently reported better-than-expected earnings of $1.31 EPS for the quarter, exceeding analysts' estimates and showcasing a 4.8% year-over-year revenue increase.
• Korn/Ferry also declared a quarterly dividend of $0.48 per share, yielding 2.6%, with an ex-dividend date set for September 26th.

Korn/Ferry International (NYSE:KFY - Get Free Report) announced that its Board of Directors has initiated a share buyback program on Thursday, September 18th, RTT News reports. The company plans to repurchase $331.40 million in outstanding shares. This repurchase authorization allows the business services provider to buy up to 8.7% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company's board believes its stock is undervalued.

Korn/Ferry International Price Performance

Shares of KFY traded down $0.09 during midday trading on Monday, reaching $72.99. The stock had a trading volume of 370,796 shares, compared to its average volume of 489,258. The company's 50-day moving average is $73.03 and its 200 day moving average is $69.37. Korn/Ferry International has a 12-month low of $59.23 and a 12-month high of $80.64. The company has a current ratio of 2.21, a quick ratio of 2.21 and a debt-to-equity ratio of 0.21. The company has a market capitalization of $3.82 billion, a price-to-earnings ratio of 15.50 and a beta of 1.49.

Korn/Ferry International (NYSE:KFY - Get Free Report) last announced its quarterly earnings data on Tuesday, September 9th. The business services provider reported $1.31 earnings per share for the quarter, beating analysts' consensus estimates of $1.24 by $0.07. The company had revenue of $708.61 million for the quarter, compared to analysts' expectations of $688.72 million. Korn/Ferry International had a return on equity of 14.55% and a net margin of 8.95%.Korn/Ferry International's revenue for the quarter was up 4.8% compared to the same quarter last year. During the same period last year, the firm posted $1.17 EPS. Korn/Ferry International has set its Q2 2026 guidance at 1.230-1.33 EPS. On average, equities analysts predict that Korn/Ferry International will post 4.75 EPS for the current fiscal year.

Korn/Ferry International Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 15th. Stockholders of record on Friday, September 26th will be issued a $0.48 dividend. This represents a $1.92 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date is Friday, September 26th. Korn/Ferry International's payout ratio is presently 40.76%.

Analyst Upgrades and Downgrades

KFY has been the subject of several recent analyst reports. Truist Financial boosted their target price on Korn/Ferry International from $80.00 to $88.00 and gave the stock a "buy" rating in a research report on Friday, June 20th. UBS Group dropped their price target on Korn/Ferry International from $75.00 to $74.00 and set a "neutral" rating for the company in a research report on Tuesday, May 27th. Finally, Wall Street Zen cut shares of Korn/Ferry International from a "strong-buy" rating to a "buy" rating in a research report on Wednesday, July 9th. One analyst has rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $81.00.

About Korn/Ferry International

Korn Ferry, together with its subsidiaries, provides organizational consulting services worldwide. It operates through four segments: Consulting, Digital, Executive Search, and Recruitment Process Outsourcing (RPO) & Professional Search. The company provides executive search services to recruit board level, chief executive, other senior executive, and general management talent of organizations.