Resources Connection Inc. (RECN) Trading Down 11.5% After Earnings Miss
Resources Connection Inc. (NASDAQ:RECN)’s share price dropped 11.5% during trading on Thursday following a weaker than expected earnings announcement. The stock traded as low as $12.41 and last traded at $13.25, with a volume of 520,072 shares changing hands. The stock had previously closed at $14.97.
The company reported $0.15 EPS for the quarter, missing the Zacks’ consensus estimate of $0.16 by $0.01. Resources Connection had a net margin of 5.09% and a return on equity of 8.86%. The firm had revenue of $143.40 million for the quarter. During the same period last year, the firm earned $0.19 earnings per share. The firm’s revenue was down 3.3% compared to the same quarter last year.
The company also recently announced a quarterly dividend, which was paid on Wednesday, September 21st. Investors of record on Wednesday, August 24th were given a dividend of $0.11 per share. This is a boost from Resources Connection’s previous quarterly dividend of $0.10. The ex-dividend date was Monday, August 22nd. This represents a $0.44 dividend on an annualized basis and a yield of 3.36%. Resources Connection’s dividend payout ratio is presently 54.32%.
RECN has been the subject of a number of analyst reports. Zacks Investment Research raised shares of Resources Connection from a “sell” rating to a “hold” rating in a research report on Thursday, June 9th. JPMorgan Chase & Co. restated a “hold” rating on shares of Resources Connection in a research note on Thursday. Robert W. Baird lowered shares of Resources Connection from an “outperform” rating to a “neutral” rating in a research note on Thursday. Finally, Deutsche Bank AG started coverage on shares of Resources Connection in a research note on Wednesday, August 17th. They set a “sell” rating and a $13.00 price target on the stock.
A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Springbok Capital Management LLC raised its stake in Resources Connection by 65.2% in the first quarter. Springbok Capital Management LLC now owns 13,300 shares of the company’s stock worth $207,000 after buying an additional 5,248 shares during the last quarter. JPMorgan Chase & Co. raised its stake in Resources Connection by 11.2% in the first quarter. JPMorgan Chase & Co. now owns 287,890 shares of the company’s stock worth $4,479,000 after buying an additional 28,946 shares during the last quarter. NN Investment Partners Holdings N.V. acquired a new stake in Resources Connection during the first quarter worth $733,000. Alambic Investment Management L.P. raised its stake in Resources Connection by 37.7% in the second quarter. Alambic Investment Management L.P. now owns 76,623 shares of the company’s stock worth $1,132,000 after buying an additional 20,983 shares during the last quarter. Finally, Brandes Investment Partners LP raised its stake in Resources Connection by 45.1% in the second quarter. Brandes Investment Partners LP now owns 135,628 shares of the company’s stock worth $2,005,000 after buying an additional 42,188 shares during the last quarter. Institutional investors and hedge funds own 87.39% of the company’s stock.
The firm has a market cap of $474.08 million, a PE ratio of 16.15 and a beta of 1.31. The firm has a 50 day moving average price of $14.75 and a 200-day moving average price of $14.86.
Resources Connection Company Profile
Resources Connection, Inc is a multinational consulting firm. The Company’s operating entities primarily provide services under the name Resources Global Professionals (RGP). It provides consulting and business initiative support services to its global client base in the areas of accounting; finance; corporate governance, risk and compliance management; corporate advisory, strategic communications and restructuring; information management; human capital; supply chain management; healthcare solutions, and legal and regulatory.
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