ManpowerGroup (MAN) Downgraded to Sell at Zacks Investment Research

Zacks Investment Research cut shares of ManpowerGroup (NYSE:MAN) from a hold rating to a sell rating in a research report sent to investors on Monday morning.

According to Zacks, “ManpowerGroup's bottom line is likely to get affected by the escalation in costs, which are related to investments in digital and restructuring activities. Staffing margin pressure is likely to weigh on the company’s Southern Europe segment. High debt may limit the company’s future expansion and worsen its risk profile. Shares of the company have underperformed its industry in the past year. Despite such negatives, ManpowerGroup continues to benefit from a strong staffing industry, leading to robust manufacturing and non-manufacturing activities and higher corporate spending post the tax reform. Acquisitions have been acting as another growth catalyst. The company’s significant investments in technology, to increase productivity and efficiency, are appreciable.”

A number of other brokerages also recently commented on MAN. Barclays lowered their target price on ManpowerGroup from $90.00 to $85.00 and set an underweight rating on the stock in a research note on Tuesday, October 2nd. Macquarie cut ManpowerGroup from an outperform rating to a neutral rating and set a $91.00 price target for the company. in a research report on Tuesday, October 9th. ValuEngine raised ManpowerGroup from a strong sell rating to a sell rating in a research report on Thursday, November 1st. Robert W. Baird reduced their price target on ManpowerGroup from $101.00 to $97.00 and set an outperform rating for the company in a research report on Monday, October 22nd. Finally, Argus reduced their price target on ManpowerGroup from $135.00 to $95.00 and set a buy rating for the company in a research report on Monday, October 22nd. Three analysts have rated the stock with a sell rating, six have issued a hold rating and five have given a buy rating to the company’s stock. The company currently has a consensus rating of Hold and a consensus target price of $99.00.



Shares of NYSE MAN opened at $70.65 on Monday. The company has a current ratio of 1.47, a quick ratio of 1.47 and a debt-to-equity ratio of 0.37. ManpowerGroup has a one year low of $61.57 and a one year high of $136.93. The stock has a market capitalization of $4.39 billion, a price-to-earnings ratio of 8.20, a PEG ratio of 1.00 and a beta of 1.35.

ManpowerGroup (NYSE:MAN) last issued its earnings results on Friday, October 19th. The business services provider reported $2.43 EPS for the quarter, beating analysts’ consensus estimates of $2.41 by $0.02. ManpowerGroup had a return on equity of 20.02% and a net margin of 2.76%. The firm had revenue of $5.42 billion for the quarter, compared to the consensus estimate of $5.64 billion. During the same quarter in the previous year, the company posted $2.04 earnings per share. The business’s quarterly revenue was down .8% compared to the same quarter last year. On average, equities research analysts anticipate that ManpowerGroup will post 8.7 EPS for the current fiscal year.

The business also recently declared a quarterly dividend, which was paid on Friday, December 14th. Shareholders of record on Monday, December 3rd were given a $1.01 dividend. The ex-dividend date was Friday, November 30th. This represents a $4.04 dividend on an annualized basis and a dividend yield of 5.72%. This is a boost from ManpowerGroup’s previous quarterly dividend of $0.93. ManpowerGroup’s payout ratio is currently 28.69%.

In related news, Director John R. Walter sold 7,403 shares of the business’s stock in a transaction dated Thursday, November 15th. The stock was sold at an average price of $77.74, for a total transaction of $575,509.22. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director William Downe acquired 4,000 shares of the business’s stock in a transaction that occurred on Wednesday, November 28th. The shares were acquired at an average cost of $81.21 per share, with a total value of $324,840.00. Following the transaction, the director now directly owns 4,000 shares in the company, valued at approximately $324,840. The disclosure for this purchase can be found here. 1.02% of the stock is owned by insiders.

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Caisse DE Depot ET Placement DU Quebec lifted its position in shares of ManpowerGroup by 1.6% during the 2nd quarter. Caisse DE Depot ET Placement DU Quebec now owns 44,900 shares of the business services provider’s stock worth $3,864,000 after purchasing an additional 700 shares during the last quarter. IFM Investors Pty Ltd lifted its position in shares of ManpowerGroup by 24.9% during the 3rd quarter. IFM Investors Pty Ltd now owns 3,724 shares of the business services provider’s stock worth $320,000 after purchasing an additional 742 shares during the last quarter. IFP Advisors Inc lifted its position in shares of ManpowerGroup by 148.6% during the 3rd quarter. IFP Advisors Inc now owns 1,310 shares of the business services provider’s stock worth $113,000 after purchasing an additional 783 shares during the last quarter. Commonwealth Bank of Australia lifted its position in shares of ManpowerGroup by 4.7% during the 3rd quarter. Commonwealth Bank of Australia now owns 17,734 shares of the business services provider’s stock worth $1,518,000 after purchasing an additional 800 shares during the last quarter. Finally, Meiji Yasuda Asset Management Co Ltd. lifted its position in shares of ManpowerGroup by 33.3% during the 3rd quarter. Meiji Yasuda Asset Management Co Ltd. now owns 3,200 shares of the business services provider’s stock worth $275,000 after purchasing an additional 800 shares during the last quarter. 94.01% of the stock is owned by institutional investors and hedge funds.

About ManpowerGroup

ManpowerGroup Inc provides workforce solutions and services in the Americas, Southern Europe, Northern Europe, and the Asia Pacific Middle East region. The company's recruitment service portfolio includes permanent, temporary, and contract recruitment of professionals, as well as administrative and industrial positions.

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