Kelly Services (NASDAQ:KELYA) Downgraded by Wall Street Zen to “Sell”

Wall Street Zen cut shares of Kelly Services (NASDAQ:KELYA) from a hold rating to a sell rating in a research report report published on Saturday.

A number of other analysts have also recently weighed in on the company. Barrington Research lowered their price objective on Kelly Services from $16.00 to $15.00 and set an “outperform” rating for the company in a research report on Friday. Zacks Research upgraded Kelly Services from a “strong sell” rating to a “hold” rating in a research note on Monday, January 12th. Finally, Weiss Ratings restated a “sell (d)” rating on shares of Kelly Services in a research note on Thursday, January 22nd. Two investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Kelly Services has a consensus rating of “Hold” and an average target price of $15.00.

Kelly Services Stock Up 0.1%

NASDAQ:KELYA opened at $9.79 on Friday. The company’s 50-day simple moving average is $9.55 and its 200-day simple moving average is $11.20. The company has a debt-to-equity ratio of 0.10, a quick ratio of 1.59 and a current ratio of 1.54. Kelly Services has a fifty-two week low of $7.98 and a fifty-two week high of $14.94. The stock has a market capitalization of $345.98 million, a P/E ratio of -1.35, a P/E/G ratio of 0.43 and a beta of 0.79.

Kelly Services (NASDAQ:KELYA) last posted its earnings results on Thursday, February 12th. The business services provider reported $0.16 EPS for the quarter, missing analysts’ consensus estimates of $0.45 by ($0.29). The firm had revenue of $1.05 billion for the quarter, compared to analysts’ expectations of $1.03 billion. Kelly Services had a negative net margin of 5.98% and a positive return on equity of 4.05%. On average, equities analysts anticipate that Kelly Services will post 2.45 earnings per share for the current fiscal year.

Kelly Services Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 11th. Stockholders of record on Wednesday, February 25th will be issued a $0.075 dividend. The ex-dividend date of this dividend is Wednesday, February 25th. This represents a $0.30 dividend on an annualized basis and a dividend yield of 3.1%. Kelly Services’s dividend payout ratio is currently -4.13%.

Hedge Funds Weigh In On Kelly Services

A number of institutional investors have recently bought and sold shares of the business. Quarry LP boosted its holdings in shares of Kelly Services by 173.2% in the 3rd quarter. Quarry LP now owns 1,970 shares of the business services provider’s stock valued at $26,000 after acquiring an additional 1,249 shares during the last quarter. Versant Capital Management Inc lifted its position in Kelly Services by 52.0% during the third quarter. Versant Capital Management Inc now owns 3,006 shares of the business services provider’s stock valued at $39,000 after purchasing an additional 1,028 shares during the period. GAMMA Investing LLC boosted its holdings in Kelly Services by 175.4% in the third quarter. GAMMA Investing LLC now owns 3,385 shares of the business services provider’s stock valued at $44,000 after purchasing an additional 2,156 shares during the last quarter. CANADA LIFE ASSURANCE Co acquired a new stake in Kelly Services during the 4th quarter worth about $30,000. Finally, Tower Research Capital LLC TRC raised its stake in shares of Kelly Services by 83.5% during the 2nd quarter. Tower Research Capital LLC TRC now owns 4,324 shares of the business services provider’s stock valued at $51,000 after buying an additional 1,967 shares during the last quarter. 76.34% of the stock is owned by hedge funds and other institutional investors.

More Kelly Services News

Here are the key news stories impacting Kelly Services this week:

• Positive Sentiment: Company declared a quarterly cash dividend of $0.075 per share (record Feb 25; payable Mar 11), implying a ~3.1% yield — provides income support and can reduce downside for yield-seeking investors.
• Positive Sentiment: Barrington Research maintained an “outperform” rating and set a $15 price target (lowered from $16), signaling analyst conviction and ~50%+ upside from current levels — a potential positive catalyst if investors follow the buy recommendation. Article Title
• Neutral Sentiment: Press release and formal Q4 results are available; revenue of $1.05B slightly exceeded consensus ($1.03B), showing top-line resilience even as profitability weakened. Article Title
• Neutral Sentiment: Full Q4 earnings call transcript is available for additional color on margins, staffing demand and cost actions — useful for investors wanting management’s detail on outlook and margin drivers. Article Title
• Neutral Sentiment: Reports show a strange/insignificant short-interest data point (zeros/NaNs); nothing actionable from short-interest filings at this time.
• Negative Sentiment: Q4 EPS of $0.16 missed consensus of $0.45 and fell sharply from prior-year EPS — the earnings miss is the primary near-term negative catalyst, highlighting pressure on margins and earnings quality. Article Title
• Negative Sentiment: Management updated 1Q FY2026 guidance below street expectations (revenue guidance came in under consensus), which increases downside risk until management demonstrates margin recovery or clearer topline momentum.

Kelly Services Company Profile

Kelly Services, Inc is a global workforce solutions provider specializing in talent acquisition and staffing services across a wide range of industries. The company offers temporary staffing, permanent placement, outsourcing solutions, and consulting services to help organizations address their workforce needs. Its service offerings are designed to support clients in areas such as administrative support, information technology, engineering, science, education, healthcare, and industrial sectors.

Founded in 1946 by William Russell Kelly, Kelly Services has grown from a small local staffing firm into an international organization.