Kelly Services (NASDAQ:KELYA) Downgraded to Buy Rating by Wall Street Zen

Key Points

• Wall Street Zen has downgraded Kelly Services (NASDAQ:KELYA) from a "strong-buy" rating to a "buy" rating, signaling a more cautious outlook for the stock.
• Barrington Research maintains an "outperform" rating with a price target of $25.00, while the consensus rating for Kelly Services remains "Buy" according to MarketBeat.com.
• Kelly Services reported $0.54 EPS for the last quarter, meeting analysts' expectations, with a revenue of $1.10 billion falling short of the estimated $1.12 billion.

Kelly Services (NASDAQ:KELYA - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research note issued to investors on Saturday.

Separately, Barrington Research reaffirmed an "outperform" rating and set a $25.00 target price on shares of Kelly Services in a research report on Tuesday, May 20th. One equities research analyst has rated the stock with a Buy rating, Based on data from MarketBeat, Kelly Services currently has an average rating of "Buy" and a consensus target price of $25.00.

Kelly Services Stock Down 1.6%

NASDAQ KELYA traded down $0.22 during mid-day trading on Friday, hitting $13.65. The company's stock had a trading volume of 292,533 shares, compared to its average volume of 306,468. The company's 50 day simple moving average is $13.28 and its 200 day simple moving average is $12.58. Kelly Services has a twelve month low of $10.80 and a twelve month high of $22.44. The company has a current ratio of 1.52, a quick ratio of 1.52 and a debt-to-equity ratio of 0.06. The firm has a market capitalization of $481.19 million, a price-to-earnings ratio of -68.25, a PEG ratio of 0.50 and a beta of 0.89.

Kelly Services (NASDAQ:KELYA - Get Free Report) last posted its quarterly earnings results on Thursday, August 7th. The business services provider reported $0.54 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.54. Kelly Services had a negative net margin of 0.14% and a positive return on equity of 5.65%. The business had revenue of $1.10 billion during the quarter, compared to the consensus estimate of $1.12 billion. Kelly Services has set its Q3 2025 guidance at EPS. Analysts anticipate that Kelly Services will post 2.45 earnings per share for the current year.

Insider Buying and Selling at Kelly Services

In related news, SVP Daniel H. Malan sold 10,000 shares of the business's stock in a transaction dated Thursday, August 21st. The shares were sold at an average price of $14.24, for a total value of $142,400.00. Following the transaction, the senior vice president directly owned 95,281 shares of the company's stock, valued at approximately $1,356,801.44. The trade was a 9.50% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 48.09% of the company's stock.

Institutional Trading of Kelly Services

Several hedge funds have recently made changes to their positions in the company. Susquehanna International Group LLP lifted its holdings in Kelly Services by 225.3% during the fourth quarter. Susquehanna International Group LLP now owns 122,164 shares of the business services provider's stock valued at $1,703,000 after purchasing an additional 84,604 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its holdings in Kelly Services by 22.8% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 12,383 shares of the business services provider's stock valued at $173,000 after purchasing an additional 2,298 shares during the last quarter. BNP Paribas Financial Markets lifted its holdings in Kelly Services by 604.7% during the fourth quarter. BNP Paribas Financial Markets now owns 55,553 shares of the business services provider's stock valued at $774,000 after purchasing an additional 47,670 shares during the last quarter. Bank of America Corp DE lifted its holdings in Kelly Services by 123.7% during the fourth quarter. Bank of America Corp DE now owns 146,462 shares of the business services provider's stock valued at $2,042,000 after purchasing an additional 80,995 shares during the last quarter. Finally, Balyasny Asset Management L.P. purchased a new stake in Kelly Services during the fourth quarter valued at about $725,000. 76.34% of the stock is currently owned by institutional investors.

About Kelly Services

Kelly Services, Inc, together with its subsidiaries, provides workforce solutions to various industries. The company operates through five segments: Professional & Industrial; Science, Engineering & Technology; Education; Outsourcing & Consulting; and International. The Professional & Industrial segment delivers staffing, outcome-based, and permanent placement services providing administrative, accounting, and finance; light industrial; contact center staffing; and other workforce solutions.