Kelly Services (NASDAQ:KELYA) Hits New 12-Month High on Strong Earnings

Kelly Services, Inc. (NASDAQ:KELYA)’s share price hit a new 52-week high during mid-day trading on Thursday following a better than expected earnings announcement. The stock traded as high as $16.67 and last traded at $17.2630, with a volume of 2435 shares changing hands. The stock had previously closed at $15.22.

The business services provider reported $0.37 EPS for the quarter, topping the consensus estimate of $0.18 by $0.19. The business had revenue of $1.04 billion for the quarter, compared to analysts’ expectations of $1.01 billion. Kelly Services had a negative net margin of 6.73% and a positive return on equity of 2.69%. During the same quarter last year, the company posted $0.52 earnings per share.

Kelly Services Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 2nd. Stockholders of record on Wednesday, August 19th will be given a $0.075 dividend. The ex-dividend date is Wednesday, August 19th. This represents a $0.30 annualized dividend and a dividend yield of 2.0%. Kelly Services’s dividend payout ratio (DPR) is presently -3.95%.

Key Stories Impacting Kelly Services

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

• Positive Sentiment: Second-quarter results exceeded expectations. Kelly reported adjusted earnings of $0.37 per share, above analyst estimates ranging from $0.18 to $0.24, while revenue of $1.04 billion surpassed the $1.01 billion consensus. The earnings beat provides a positive catalyst for the stock. Kelly Services Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Kelly maintained its quarterly dividend. Shareholders of record on August 19 will receive $0.075 per share on September 2, equivalent to $0.30 annually and a yield of approximately 1.9%. The dividend supports the stock’s income appeal.
• Neutral Sentiment: Management issued third-quarter revenue guidance of $916.3 million to $935.0 million. The midpoint of approximately $925.7 million is close to, but slightly below, the $929.3 million analyst consensus, suggesting broadly stable expectations but limited near-term upside from revenue growth.
• Negative Sentiment: Profitability weakened compared with last year. Second-quarter EPS declined from $0.52 in the prior-year period to $0.37, despite the estimate beat. Kelly also continued to report a negative net margin, which may be weighing on investor sentiment and offsetting the headline earnings surprise. Kelly Reports Second-Quarter 2026 Earnings

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on the stock. Weiss Ratings downgraded shares of Kelly Services from a “sell (d)” rating to a “sell (d-)” rating in a research report on Monday, May 11th. Zacks Research raised shares of Kelly Services from a “strong sell” rating to a “hold” rating in a report on Monday, April 20th. Finally, Barrington Research restated an “outperform” rating on shares of Kelly Services in a research note on Monday, June 29th. Two equities research 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 MarketBeat, Kelly Services presently has an average rating of “Hold” and an average price target of $15.00.

Insider Activity at Kelly Services

In related news, EVP Vanessa Peterson Williams sold 29,999 shares of the stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $9.78, for a total value of $293,390.22. Following the sale, the executive vice president owned 82,355 shares of the company’s stock, valued at $805,431.90. This trade represents a 26.70% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 5.40% of the company’s stock.

Hedge Funds Weigh In On Kelly Services

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its position in Kelly Services by 7.9% during the 3rd quarter. Vanguard Group Inc. now owns 2,071,363 shares of the business services provider’s stock worth $27,176,000 after acquiring an additional 151,655 shares during the period. Boston Partners increased its holdings in shares of Kelly Services by 0.4% during the third quarter. Boston Partners now owns 2,051,499 shares of the business services provider’s stock valued at $26,908,000 after purchasing an additional 9,020 shares during the period. Charles Schwab Investment Management Inc. raised its stake in shares of Kelly Services by 39.9% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,908,900 shares of the business services provider’s stock valued at $16,798,000 after purchasing an additional 544,309 shares in the last quarter. Private Management Group Inc. lifted its holdings in Kelly Services by 101.8% in the fourth quarter. Private Management Group Inc. now owns 1,268,649 shares of the business services provider’s stock worth $11,164,000 after purchasing an additional 640,076 shares during the period. Finally, Millennium Management LLC lifted its holdings in Kelly Services by 8.5% in the first quarter. Millennium Management LLC now owns 1,188,264 shares of the business services provider’s stock worth $15,649,000 after purchasing an additional 93,026 shares during the period. 76.34% of the stock is owned by institutional investors.

Kelly Services Stock Down 2.8%

The stock’s 50-day moving average is $13.37 and its 200-day moving average is $10.94. The stock has a market cap of $526.64 million, a P/E ratio of -1.94, a price-to-earnings-growth ratio of 1.19 and a beta of 0.83. The company has a current ratio of 1.50, a quick ratio of 1.59 and a debt-to-equity ratio of 0.08.

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.