Short Interest in Adecco SA (OTCMKTS:AHEXY) Declines By 98.8%

Key Points

• Short interest in Adecco SA plunged 98.8% in July, falling to just 100 shares by July 15 from 8,561 shares on June 30. That leaves the stock with essentially no days-to-cover and virtually no shares shorted.
• Adecco’s latest quarterly results beat expectations, with EPS of $0.29 versus the $0.27 consensus and revenue of $6.62 billion above estimates. Analysts currently expect full-year EPS of 1.35.
• Analyst sentiment is mixed, with recent upgrades and downgrades leaving Adecco at an overall average rating of “Hold.” Recent moves include Citigroup and Morgan Stanley downgrades, while BNP Paribas Exane upgraded the stock to strong-buy.

Adecco SA (OTCMKTS:AHEXY - Get Free Report) saw a large decrease in short interest during the month of July. As of July 15th, there was short interest totaling 100 shares, a decrease of 98.8% from the June 30th total of 8,561 shares. Based on an average daily volume of 22,987 shares, the days-to-cover ratio is currently 0.0 days. Approximately 0.0% of the company's stock are short sold.

Adecco Stock Performance

AHEXY traded up $0.06 during midday trading on Friday, hitting $13.44. 1,896 shares of the company traded hands, compared to its average volume of 23,381. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.73. The firm has a market capitalization of $4.67 billion, a PE ratio of 12.80, a price-to-earnings-growth ratio of 1.04 and a beta of 0.98. The company's 50-day moving average is $10.29 and its 200 day moving average is $12.02. Adecco has a 52 week low of $8.98 and a 52 week high of $16.83.

Adecco (OTCMKTS:AHEXY - Get Free Report) last announced its quarterly earnings results on Wednesday, May 13th. The business services provider reported $0.29 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.27 by $0.02. Adecco had a net margin of 1.31% and a return on equity of 12.09%. The firm had revenue of $6.62 billion for the quarter, compared to the consensus estimate of $6.55 billion. On average, research analysts expect that Adecco will post 1.35 EPS for the current year.

Analyst Ratings Changes

AHEXY has been the subject of several recent analyst reports. Citigroup cut shares of Adecco from a "strong-buy" rating to a "neutral" rating in a report on Thursday, April 30th. Zacks Research raised shares of Adecco from a "strong sell" rating to a "hold" rating in a research report on Monday, July 13th. UBS Group lowered shares of Adecco from a "hold" rating to a "sell" rating in a report on Monday, May 18th. BNP Paribas Exane raised Adecco from a "hold" rating to a "strong-buy" rating in a research report on Friday, July 17th. Finally, Morgan Stanley downgraded Adecco from a "cautious" rating to an "underweight" rating in a research note on Tuesday, June 9th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, Adecco presently has an average rating of "Hold".

About Adecco

Adecco Group AG is a global human resources and workforce solutions provider headquartered in Zurich, Switzerland. The company specializes in temporary staffing, permanent placement, career transition, and talent development services. Its core business activities include matching job seekers with client companies, managing contingent workforce solutions, and offering consulting services related to workforce management and organizational effectiveness.

Founded in 1996 through the merger of the Swiss companies Adia Interim and ECCO, Adecco has grown into one of the world's largest staffing firms.

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