Resources Connection, Inc. (RECN) Cut to Hold at Zacks Investment Research
Zacks Investment Research downgraded shares of Resources Connection, Inc. (NASDAQ:RECN) from a buy rating to a hold rating in a research report released on Tuesday.
According to Zacks, “Resources Connection, Inc. is a professional services firm that provides experienced accounting and finance, human resources management and information technology professionals to clients on a project-by-project basis. In accounting and finance, they assist clients with discrete projects requiring specialized professional expertise, such as mergers and acquisitions due diligence, financial analyses and tax-related projects. They also provide human resources management services and information technology services. “
RECN has been the topic of a number of other reports. Deutsche Bank AG reduced their price objective on shares of Resources Connection from $14.00 to $12.00 and set a sell rating on the stock in a research note on Friday, July 21st. Robert W. Baird reaffirmed a hold rating and issued a $15.00 price objective on shares of Resources Connection in a research note on Friday, August 25th. Finally, BidaskClub lowered shares of Resources Connection from a sell rating to a strong sell rating in a research note on Friday, August 18th. Two research analysts have rated the stock with a sell rating and two have given a hold rating to the company. The company presently has an average rating of Hold and an average target price of $15.00.
Resources Connection (NASDAQ:RECN) last posted its earnings results on Wednesday, October 4th. The business services provider reported $0.12 earnings per share for the quarter, hitting the Zacks’ consensus estimate of $0.12. Resources Connection had a net margin of 2.60% and a return on equity of 8.08%. The firm had revenue of $141.20 million for the quarter, compared to analyst estimates of $140.29 million. During the same period in the previous year, the firm posted $0.15 EPS. The company’s revenue for the quarter was down 1.5% compared to the same quarter last year.
The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 21st. Stockholders of record on Thursday, August 24th were paid a $0.12 dividend. This is a positive change from Resources Connection’s previous quarterly dividend of $0.11. This represents a $0.48 dividend on an annualized basis and a dividend yield of 3.25%. The ex-dividend date of this dividend was Tuesday, August 22nd. Resources Connection’s dividend payout ratio is currently 102.13%.
Several institutional investors have recently added to or reduced their stakes in RECN. Royce & Associates LP lifted its position in shares of Resources Connection by 15.1% during the 2nd quarter. Royce & Associates LP now owns 2,373,739 shares of the business services provider’s stock valued at $32,520,000 after acquiring an additional 311,900 shares during the period. Brandes Investment Partners LP lifted its position in shares of Resources Connection by 51.2% during the 2nd quarter. Brandes Investment Partners LP now owns 364,565 shares of the business services provider’s stock valued at $4,994,000 after acquiring an additional 123,466 shares during the period. Morgan Stanley lifted its position in shares of Resources Connection by 27.2% during the 1st quarter. Morgan Stanley now owns 389,642 shares of the business services provider’s stock valued at $6,527,000 after acquiring an additional 83,386 shares during the period. JPMorgan Chase & Co. lifted its position in shares of Resources Connection by 50.1% during the 2nd quarter. JPMorgan Chase & Co. now owns 233,161 shares of the business services provider’s stock valued at $3,195,000 after acquiring an additional 77,780 shares during the period. Finally, AXA acquired a new position in shares of Resources Connection during the 2nd quarter valued at $1,062,000. Institutional investors own 82.11% of the company’s stock.
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). The Company provides consulting and business initiative support services to its global client base in the areas of accounting; finance; corporate governance, risk and compliance (GRC) management; corporate advisory, strategic communications and restructuring; information management; human capital; supply chain management, and legal and regulatory.
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