Kforce (NASDAQ:KFRC) Shares Gap Down Following Weak Earnings

Shares of Kforce Inc. (NASDAQ:KFRC) gapped down prior to trading on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $42.76, but opened at $39.70. Kforce shares last traded at $39.05, with a volume of 15,221 shares traded.

The business services provider reported $0.45 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.48 by ($0.03). Kforce had a net margin of 3.59% and a return on equity of 30.34%. The company had revenue of $330.03 million for the quarter, compared to analyst estimates of $334.61 million. During the same quarter last year, the firm posted $0.58 EPS. Kforce’s revenue for the quarter was down 6.2% on a year-over-year basis.

Kforce Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 27th. Investors of record on Friday, June 13th will be given a dividend of $0.39 per share. This represents a $1.56 dividend on an annualized basis and a dividend yield of 4.24%. The ex-dividend date is Friday, June 13th. Kforce’s payout ratio is 58.21%.

Wall Street Analyst Weigh In

Separately, Truist Financial lowered their target price on Kforce from $58.00 to $50.00 and set a “hold” rating on the stock in a research note on Tuesday, April 15th.

Institutional Investors Weigh In On Kforce

Institutional investors and hedge funds have recently modified their holdings of the company. Marshall Wace LLP bought a new position in shares of Kforce in the fourth quarter worth $6,683,000. Tributary Capital Management LLC increased its position in shares of Kforce by 38.3% in the fourth quarter. Tributary Capital Management LLC now owns 422,930 shares of the business services provider’s stock worth $23,980,000 after purchasing an additional 117,231 shares during the last quarter. Raymond James Financial Inc. purchased a new stake in Kforce in the fourth quarter valued at approximately $5,146,000. Proficio Capital Partners LLC purchased a new position in Kforce in the 4th quarter worth approximately $4,951,000. Finally, Wellington Management Group LLP increased its holdings in shares of Kforce by 36.3% in the 4th quarter. Wellington Management Group LLP now owns 297,111 shares of the business services provider’s stock worth $16,846,000 after buying an additional 79,100 shares during the last quarter. 92.77% of the stock is owned by hedge funds and other institutional investors.

Kforce Stock Performance

The company has a debt-to-equity ratio of 0.16, a quick ratio of 2.06 and a current ratio of 2.06. The stock has a market cap of $703.11 million, a PE ratio of 13.73 and a beta of 0.76. The company’s 50-day moving average price is $47.49 and its two-hundred day moving average price is $53.49.

Kforce Company Profile

Kforce Inc provides professional staffing services and solutions in the United States. It operates through two segments, Technology, and Finance and Accounting (FA). The Technology segment provides talent solutions to its clients primarily in the areas of information technology, such as systems/applications architecture and development, data management and analytics, business and artificial intelligence, machine learning, project and program management, and network architecture and security.