Korn/Ferry International (NYSE:KFY) to Repurchase $331.40 million in Outstanding Stock

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 has initiated a stock repurchase plan on Thursday, September 18th, RTT News reports. The company plans to repurchase $331.40 million in shares. This repurchase authorization allows the business services provider to reacquire up to 8.7% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's management believes its shares are undervalued.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the stock. Truist Financial boosted their target price on shares of Korn/Ferry International from $80.00 to $88.00 and gave the stock a "buy" rating in a research report on Friday, June 20th. Wall Street Zen lowered shares of Korn/Ferry International from a "strong-buy" rating to a "buy" rating in a research report on Wednesday, July 9th. Finally, UBS Group dropped their price target on shares of 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. One equities research analyst has rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $81.00.

Korn/Ferry International Trading Down 0.4%

Korn/Ferry International stock traded down $0.29 during trading hours on Friday, reaching $73.16. The stock had a trading volume of 1,132,519 shares, compared to its average volume of 455,247. The stock has a market cap of $3.83 billion, a PE ratio of 15.53 and a beta of 1.49. Korn/Ferry International has a 52 week low of $59.23 and a 52 week high of $80.64. The company has a debt-to-equity ratio of 0.21, a current ratio of 2.21 and a quick ratio of 2.21. The company has a fifty day simple moving average of $73.05 and a 200-day simple moving average of $69.29.

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

Korn/Ferry International Dividend Announcement

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 paid a $0.48 dividend. This represents a $1.92 annualized dividend and a dividend yield of 2.6%. The ex-dividend date is Friday, September 26th. Korn/Ferry International's dividend payout ratio is 40.76%.

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.