Kforce (KFRC) Stock Price Down 12.4% on Disappointing Earnings

Kforce Inc. (NASDAQ:KFRC)’s share price dropped 12.4% on Wednesday following a weaker than expected earnings announcement. The company traded as low as $30.76 and last traded at $30.82. Approximately 515,448 shares changed hands during mid-day trading, an increase of 167% from the average daily volume of 193,301 shares. The stock had previously closed at $35.18.

The business services provider reported $0.64 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.66 by ($0.02). Kforce had a return on equity of 34.52% and a net margin of 3.00%. The firm had revenue of $355.45 million for the quarter, compared to analyst estimates of $356.89 million. During the same period in the prior year, the business posted $0.45 EPS. The firm’s quarterly revenue was up 4.2% compared to the same quarter last year.

KFRC has been the subject of a number of research reports. SunTrust Banks lifted their target price on Kforce to $44.00 and gave the stock a “hold” rating in a report on Thursday, August 2nd. Zacks Investment Research raised Kforce from a “hold” rating to a “buy” rating and set a $47.00 target price for the company in a report on Saturday, August 4th. ValuEngine downgraded Kforce from a “buy” rating to a “hold” rating in a report on Thursday. BidaskClub downgraded Kforce from a “hold” rating to a “sell” rating in a report on Thursday, October 4th. Finally, Credit Suisse Group initiated coverage on Kforce in a report on Friday, August 10th. They set a “neutral” rating and a $38.00 target price for the company. Five analysts have rated the stock with a hold rating and two have assigned a buy rating to the company’s stock. The stock has an average rating of “Hold” and a consensus target price of $41.40.



In related news, Director John Allred sold 2,691 shares of the firm’s stock in a transaction on Friday, August 3rd. The stock was sold at an average price of $42.03, for a total value of $113,102.73. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Ralph Struzziero sold 2,964 shares of the firm’s stock in a transaction on Tuesday, October 2nd. The stock was sold at an average price of $36.55, for a total value of $108,334.20. Following the completion of the transaction, the director now owns 32,571 shares in the company, valued at approximately $1,190,470.05. The disclosure for this sale can be found here. Insiders sold 87,492 shares of company stock worth $3,652,939 in the last 90 days. 12.50% of the stock is owned by company insiders.

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Victory Capital Management Inc. increased its position in shares of Kforce by 15.9% in the second quarter. Victory Capital Management Inc. now owns 10,968 shares of the business services provider’s stock worth $376,000 after purchasing an additional 1,504 shares during the period. State Board of Administration of Florida Retirement System increased its position in shares of Kforce by 7.9% in the third quarter. State Board of Administration of Florida Retirement System now owns 32,685 shares of the business services provider’s stock worth $1,229,000 after purchasing an additional 2,399 shares during the period. Russell Investments Group Ltd. increased its position in shares of Kforce by 19.1% in the third quarter. Russell Investments Group Ltd. now owns 17,144 shares of the business services provider’s stock worth $645,000 after purchasing an additional 2,749 shares during the period. Schwab Charles Investment Management Inc. increased its position in shares of Kforce by 1.2% in the second quarter. Schwab Charles Investment Management Inc. now owns 285,520 shares of the business services provider’s stock worth $9,794,000 after purchasing an additional 3,491 shares during the period. Finally, First Trust Advisors LP increased its position in shares of Kforce by 16.5% in the second quarter. First Trust Advisors LP now owns 26,363 shares of the business services provider’s stock worth $904,000 after purchasing an additional 3,737 shares during the period. Institutional investors own 79.18% of the company’s stock.

The company has a quick ratio of 2.77, a current ratio of 2.77 and a debt-to-equity ratio of 0.68. The stock has a market capitalization of $892.44 million, a P/E ratio of 19.63 and a beta of 1.64.

About Kforce (NASDAQ:KFRC)

Kforce Inc provides professional staffing services and solutions in the United States and internationally. It operates through Technology (Tech), Finance and Accounting (FA), and Government Solutions (GS) segments. The Tech segment provides temporary staffing and permanent placement services to its clients primarily in the areas of information technology, such as systems/applications architecture and development, project management, enterprise data management, business intelligence, artificial intelligence, machine learning, network architecture, and security.

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