Kelly Services (NASDAQ:KELYA) Cut to Sell at Zacks Investment Research

Zacks Investment Research downgraded shares of Kelly Services (NASDAQ:KELYA) from a hold rating to a sell rating in a research report released on Saturday morning, Zacks.com reports.

According to Zacks, “Kelly Services, Inc. is a global leader of providing workforce solutions. Kelly Services, Inc. and its subsidiaries, offer a comprehensive array of outsourcing and consulting services as well as world-class staffing on a temporary, temporary-to-hire, and direct-hire basis. The company provides temporary office clerical, marketing, professional, technical, light industrial, home care services, management services and other business services to a diversified group of customers through offices located in major cities of the United States, Australia, Canada, Denmark, France, Ireland, Italy, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Russia, Spain, Switzerland and United Kingdom. Kelly Temporary Services provides office clerical, marketing, professional, technical, semi-skilled light industrial and management services. “

KELYA has been the topic of a number of other research reports. ValuEngine downgraded Kelly Services from a hold rating to a sell rating in a report on Wednesday, September 11th. Noble Financial set a $32.00 target price on Kelly Services and gave the company a buy rating in a report on Friday, September 27th. TheStreet downgraded Kelly Services from a b rating to a c+ rating in a report on Wednesday, November 6th. Northcoast Research downgraded Kelly Services from a buy rating to a neutral rating in a report on Wednesday, August 28th. Finally, BidaskClub downgraded Kelly Services from a hold rating to a sell rating in a report on Tuesday, November 5th. Three analysts have rated the stock with a sell rating, one has issued a hold rating and one has issued a buy rating to the company. Kelly Services presently has an average rating of Hold and a consensus target price of $29.50.

Kelly Services stock opened at $21.89 on Friday. The stock’s fifty day moving average price is $23.51 and its two-hundred day moving average price is $24.90. Kelly Services has a one year low of $19.21 and a one year high of $28.91. The company has a debt-to-equity ratio of 0.04, a current ratio of 1.50 and a quick ratio of 1.50. The firm has a market cap of $966.26 million, a PE ratio of 9.64 and a beta of 0.75.

Kelly Services (NASDAQ:KELYA) last issued its earnings results on Wednesday, November 6th. The business services provider reported $0.37 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.46 by ($0.09). The business had revenue of $1.27 billion during the quarter, compared to analyst estimates of $1.34 billion. Kelly Services had a net margin of 2.09% and a return on equity of 8.41%. The company’s revenue for the quarter was down 5.6% compared to the same quarter last year. During the same period in the prior year, the business posted $0.56 EPS. Sell-side analysts expect that Kelly Services will post 2.28 earnings per share for the current fiscal year.

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 5th. Shareholders of record on Wednesday, November 20th will be issued a $0.075 dividend. This represents a $0.30 dividend on an annualized basis and a dividend yield of 1.37%. The ex-dividend date is Tuesday, November 19th. Kelly Services’s dividend payout ratio is presently 13.22%.

In related news, insider James Polehna sold 1,784 shares of the firm’s stock in a transaction on Wednesday, August 14th. The stock was sold at an average price of $27.42, for a total transaction of $48,917.28. Following the sale, the insider now owns 21,399 shares of the company’s stock, valued at approximately $586,760.58. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO George S. Corona sold 29,110 shares of the firm’s stock in a transaction on Tuesday, August 27th. The shares were sold at an average price of $25.18, for a total value of $732,989.80. Following the sale, the chief executive officer now directly owns 213,311 shares in the company, valued at approximately $5,371,170.98. The disclosure for this sale can be found here. In the last ninety days, insiders sold 32,325 shares of company stock worth $863,445. Company insiders own 7.20% of the company’s stock.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in KELYA. Morgan Stanley boosted its holdings in shares of Kelly Services by 420.6% during the 2nd quarter. Morgan Stanley now owns 279,999 shares of the business services provider’s stock valued at $7,333,000 after acquiring an additional 226,215 shares in the last quarter. Nuveen Asset Management LLC acquired a new position in Kelly Services during the 2nd quarter worth about $5,043,000. BlackRock Inc. lifted its holdings in Kelly Services by 3.5% during the 2nd quarter. BlackRock Inc. now owns 4,820,333 shares of the business services provider’s stock worth $126,245,000 after buying an additional 162,155 shares during the period. Invesco Ltd. lifted its holdings in Kelly Services by 47.5% during the 2nd quarter. Invesco Ltd. now owns 325,558 shares of the business services provider’s stock worth $8,526,000 after buying an additional 104,852 shares during the period. Finally, Wells Fargo & Company MN lifted its holdings in Kelly Services by 31.5% during the 2nd quarter. Wells Fargo & Company MN now owns 380,752 shares of the business services provider’s stock worth $9,973,000 after buying an additional 91,296 shares during the period. 66.38% of the stock is currently owned by institutional investors.

Kelly Services Company Profile

Kelly Services, Inc, together with its subsidiaries, provides workforce solutions to various industries worldwide. The company operates through three segments: Americas Staffing, Global Talent Solutions, and International Staffing. It provides trained employees for data entry, clerical, and administrative support roles across various industries; schools with instructional and non-instructional employees; support staff for seminars, sales, and trade shows; assemblers, quality control inspectors, and technicians for electronic assembly; maintenance workers, material handlers, and assemblers for light industrial works; scientists, and scientific and clinical research workforce solutions; engineering professionals across various disciplines, including aeronautical, chemical, civil/structural, electrical/instrumentation, environmental, industrial, mechanical, petroleum, pharmaceutical, quality, and telecommunications.

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