Zacks Investment Research Upgrades Resources Connection (NASDAQ:RECN) to “Hold”

Zacks Investment Research upgraded shares of Resources Connection (NASDAQ:RECN) from a sell rating to a hold rating in a research note issued to investors on Wednesday morning, Zacks.com reports.

According to Zacks, “Resources Connection, Inc. is a multinational professional services firm that helps business leaders execute internal initiatives. The company provides experienced accounting and finance, human resources management and information technology professionals to clients on a project-by-project basis. Partnering with business leaders, Resources Connection drives internal change across all parts of a global enterprise – accounting, finance, risk management and internal audit, corporate advisory, strategic communications and restructuring, information management, human capital, supply chain management, healthcare solutions, and legal and regulatory services. “

Separately, BidaskClub upgraded Resources Connection from a hold rating to a buy rating in a report on Tuesday, September 17th.



Shares of NASDAQ:RECN opened at $17.72 on Wednesday. The company has a debt-to-equity ratio of 0.15, a quick ratio of 2.10 and a current ratio of 2.10. Resources Connection has a 1 year low of $12.72 and a 1 year high of $19.50. The stock has a market capitalization of $564.27 million, a P/E ratio of 17.30 and a beta of 1.19. The stock has a 50-day simple moving average of $16.93 and a 200-day simple moving average of $16.40.

Resources Connection (NASDAQ:RECN) last issued its earnings results on Thursday, July 18th. The business services provider reported $0.29 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.27 by $0.02. Resources Connection had a return on equity of 11.96% and a net margin of 4.32%. The business had revenue of $182.10 million during the quarter, compared to analysts’ expectations of $182.44 million. During the same quarter in the previous year, the business earned $0.27 EPS. The company’s revenue for the quarter was down .9% on a year-over-year basis. Analysts predict that Resources Connection will post 1.04 earnings per share for the current year.

The company also recently announced a quarterly dividend, which was paid on Thursday, September 19th. Stockholders of record on Thursday, August 22nd were issued a dividend of $0.14 per share. The ex-dividend date of this dividend was Wednesday, August 21st. This represents a $0.56 dividend on an annualized basis and a dividend yield of 3.16%. This is a boost from Resources Connection’s previous quarterly dividend of $0.13. Resources Connection’s payout ratio is presently 54.37%.

Several large investors have recently modified their holdings of the company. Nuveen Asset Management LLC purchased a new stake in shares of Resources Connection during the 2nd quarter worth about $2,463,000. D. E. Shaw & Co. Inc. lifted its position in Resources Connection by 21.5% during the 2nd quarter. D. E. Shaw & Co. Inc. now owns 26,308 shares of the business services provider’s stock worth $421,000 after acquiring an additional 4,656 shares in the last quarter. Morgan Stanley lifted its position in Resources Connection by 130.6% during the 2nd quarter. Morgan Stanley now owns 196,126 shares of the business services provider’s stock worth $3,140,000 after acquiring an additional 111,071 shares in the last quarter. Man Group plc acquired a new position in Resources Connection during the 2nd quarter worth approximately $298,000. Finally, Bank of America Corp DE lifted its position in Resources Connection by 20.5% during the 2nd quarter. Bank of America Corp DE now owns 61,667 shares of the business services provider’s stock worth $987,000 after acquiring an additional 10,491 shares in the last quarter. Institutional investors and hedge funds own 82.31% of the company’s stock.

Resources Connection Company Profile

Resources Connection, Inc provides business consulting services under the Resources Global Professionals name in North America, Europe, and the Asia Pacific. The company offers process transformation and optimization, financial reporting and analysis, technical and operational accounting, and merger and acquisition due diligence and integration services; new accounting standards implementation and remediation support services; and audit readiness, and preparation and response services.

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