Resources Connection (NASDAQ:RGP) Cut to “Strong Sell” at Zacks Research

Zacks Research lowered shares of Resources Connection (NASDAQ:RGP) from a hold rating to a strong sell rating in a research note issued to investors on Monday,Zacks.com reports.

Separately, Wall Street Zen cut Resources Connection from a “hold” rating to a “sell” rating in a research note on Saturday, April 11th. Two investment analysts have rated the stock with a Buy rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and an average price target of $7.00.

Resources Connection Stock Up 2.1%

RGP opened at $3.85 on Monday. The stock has a market cap of $132.17 million, a PE ratio of -1.30 and a beta of 0.45. The business has a 50 day moving average of $3.75 and a 200-day moving average of $4.40. Resources Connection has a 52 week low of $3.06 and a 52 week high of $6.30.

Resources Connection (NASDAQ:RGP) last released its earnings results on Wednesday, April 8th. The company reported ($0.09) EPS for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.04). The firm had revenue of $107.93 million during the quarter, compared to analysts’ expectations of $108.19 million. Resources Connection had a negative net margin of 20.16% and a negative return on equity of 0.55%.

Resources Connection Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, March 20th. Shareholders of record on Friday, February 20th were paid a dividend of $0.07 per share. The ex-dividend date was Friday, February 20th. This represents a $0.28 dividend on an annualized basis and a yield of 7.3%. Resources Connection’s payout ratio is presently -9.46%.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in RGP. Eurizon Capital SGR S.p.A. purchased a new position in Resources Connection during the fourth quarter valued at $31,000. Intesa Sanpaolo Wealth Management purchased a new position in Resources Connection during the fourth quarter valued at $33,000. Strs Ohio purchased a new position in Resources Connection during the first quarter valued at $48,000. Quarry LP raised its stake in Resources Connection by 4,995.7% during the third quarter. Quarry LP now owns 9,529 shares of the company’s stock valued at $48,000 after buying an additional 9,342 shares during the last quarter. Finally, U.S. Capital Wealth Advisors LLC purchased a new position in Resources Connection during the fourth quarter valued at $50,000. Hedge funds and other institutional investors own 93.23% of the company’s stock.

Resources Connection News Summary

Here are the key news stories impacting Resources Connection this week:

• Positive Sentiment: Noble Financial projects RGP will earn $0.04 EPS in Q4 2027 — a positive near-term earnings beat signal relative to many of the negative quarterly forecasts published. Noble Q4 2027 estimate
• Neutral Sentiment: Noble Financial published a slate of forward-quarter estimates (Q1–Q3 2027, Q2 2027) outlining expected losses per share for upcoming quarters — these provide refreshed consensus forecasts but are not standalone rating changes. Noble forward-quarter estimates
• Negative Sentiment: Zacks Research downgraded Resources Connection from “hold” to “strong sell,” a direct negative to investor sentiment and demand for the shares. Zacks downgrade
• Negative Sentiment: Noble Financial materially cut several forecasts: Q4 2026 EPS was lowered (from $0.08 to ($0.21)), FY2026 EPS was cut (to ($0.36) from ($0.09)), and FY2027 was reduced (to ($0.32) from $0.20). Those downgrades increase downside risk to near-term earnings expectations. Noble estimate cuts

About Resources Connection

Resources Connection, Inc (NASDAQ: RGP) is a publicly traded professional services firm that specializes in providing independent consulting and project-based teams to help organizations manage critical business challenges. Operating under the RGP brand, the company connects highly skilled consultants with clients seeking support in areas such as finance and accounting, legal and risk management, supply chain optimization, technology implementation, and digital transformation.

RGP’s consultants bring specific industry and functional expertise to engagements, working on a flexible basis that allows clients to scale resources up or down as needed.