Kelly Services (NASDAQ:KELYA) Receives Upgraded and Reiterated Ratings
Kelly Services (NASDAQ:KELYA), a global workforce solutions provider, has been the subject of several recent analyst ratings and reports. Wall Street Zen upgraded the stock from a "buy" to a "strong-buy" rating, while Barrington Research reiterated its "outperform" rating with a $25.00 price target.
Analyst Ratings and Price Targets
In addition to the aforementioned ratings, Wall Street Zen later cut shares of Kelly Services from a "strong-buy" rating to a "buy" rating. Other analyst coverage indicates a consensus rating of "Buy" with an average target price of $25.00. Barrington views Kelly Services shares as “significantly undervalued” after investor meetings with management.
Stock Performance and Key Metrics
On Friday, KELYA shares traded down $0.17, reaching $13.64. The stock's trading volume was 228,410 shares, below its average volume of 276,137. Kelly Services has a 52-week low of $10.80 and a 52-week high of $22.44. Key financial ratios include a current ratio of 1.52, a quick ratio of 1.52, and a debt-to-equity ratio of 0.06. The company's market capitalization stands at $480.84 million, with a P/E ratio of -68.20, a P/E/G ratio of 0.49, and a beta of 0.89. The stock's 50-day simple moving average is $13.37, and its 200-day simple moving average is $12.58.
Earnings and Financial Highlights
Kelly Services reported its latest earnings results on August 7th, announcing $0.54 earnings per share (EPS) for the quarter, matching consensus estimates. The company reported a negative net margin of 0.14% and a positive return on equity of 5.65%. Quarterly revenue was $1.10 billion, slightly below analysts' expectations of $1.12 billion. Analysts predict an EPS of 2.45 for the current year. Kelly Services has set its Q3 2025 guidance at EPS.
Insider Activity
SVP Daniel H. Malan has been active in selling shares of Kelly Services stock. On August 21st, Malan sold 10,000 shares at an average price of $14.24, totaling $142,400.00. Subsequently, on August 22nd, Malan sold another 7,650 shares at an average price of $14.40, for a total value of $110,160.00. Following these transactions, Malan directly owns 87,631 shares, valued at approximately $1,261,886.40. Company insiders own 48.09% of the company's stock.
Institutional Investor Activity
Several institutional investors and hedge funds have adjusted their positions in Kelly Services. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings by 4.5% in the 4th quarter. US Bancorp DE increased its holdings by 8.1% in the 1st quarter. Blair William & Co. IL increased its holdings by 7.5% in the 1st quarter. The Manufacturers Life Insurance Company increased its holdings by 8.2% in the 2nd quarter. Man Group plc increased its holdings by 6.6% in the 2nd quarter. Institutional investors and hedge funds collectively own 76.34% of the company's stock. Parallel Advisors LLC lifted its position by 5,012.7% in the 1st quarter.
Company Overview
Kelly Services, Inc. provides workforce solutions across various industries through five segments: Professional & Industrial; Science, Engineering & Technology; Education; Outsourcing & Consulting; and International. The Professional & Industrial segment focuses on staffing, outcome-based, and permanent placement services.
Barrington's Perspective
Barrington Research believes Kelly Services (KELYA) shares are “significantly undervalued.” They highlight the company's strategic transformation towards "faster-growing and higher-margin" specialty staffing and workforce solutions, primarily in North America. They see Kelly being valued at a substantial discount compared to other publicly-traded staffing companies, presenting a “compelling investment opportunity." Barrington maintains an Outperform rating with a $25 price target.
