Kelly Services (NASDAQ:KELYA) Trading Up 13.5% on Strong Earnings

Kelly Services, Inc. (NASDAQ:KELYA) was up 13.5% during trading on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $21.41 and last traded at $20.63, approximately 544,988 shares traded hands during mid-day trading. An increase of 205% from the average daily volume of 178,893 shares. The stock had previously closed at $18.18.

The business services provider reported $0.67 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.53 by $0.14. Kelly Services had a return on equity of 7.66% and a net margin of 1.32%. The company had revenue of $1.34 billion during the quarter, compared to analysts’ expectations of $1.35 billion. During the same quarter last year, the firm earned $0.87 earnings per share. The firm’s quarterly revenue was down 5.4% compared to the same quarter last year.

The business also recently announced a quarterly dividend, which will be paid on Monday, March 9th. Investors of record on Monday, February 24th will be issued a $0.075 dividend. The ex-dividend date is Friday, February 21st. This represents a $0.30 annualized dividend and a yield of 1.49%. Kelly Services’s dividend payout ratio (DPR) is presently 13.22%.

KELYA has been the topic of a number of recent research reports. BidaskClub upgraded shares of Kelly Services from a “strong sell” rating to a “sell” rating in a research note on Friday. ValuEngine raised shares of Kelly Services from a “sell” rating to a “hold” rating in a research note on Friday, January 10th. Zacks Investment Research raised shares of Kelly Services from a “strong sell” rating to a “hold” rating in a research note on Wednesday, January 8th. Finally, TheStreet cut shares of Kelly Services from a “b” rating to a “c+” rating in a report on Wednesday, November 6th. One analyst has rated the stock with a sell rating, three have assigned a hold rating and one has given a buy rating to the company’s stock. The stock has an average rating of “Hold” and a consensus target price of $29.50.

In other news, Director George S. Corona sold 20,078 shares of the company’s stock in a transaction on Monday, December 9th. The shares were sold at an average price of $22.09, for a total value of $443,523.02. Following the completion of the transaction, the director now owns 146,721 shares in the company, valued at approximately $3,241,066.89. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, Director George S. Corona sold 8,066 shares of the stock in a transaction on Friday, December 13th. The shares were sold at an average price of $22.15, for a total transaction of $178,661.90. Following the completion of the transaction, the director now directly owns 117,041 shares in the company, valued at $2,592,458.15. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 89,184 shares of company stock valued at $1,954,843. Insiders own 7.20% of the company’s stock.

Hedge funds and other institutional investors have recently made changes to their positions in the stock. AQR Capital Management LLC increased its position in Kelly Services by 16.5% during the 4th quarter. AQR Capital Management LLC now owns 242,766 shares of the business services provider’s stock worth $5,482,000 after purchasing an additional 34,386 shares in the last quarter. Jacobs Levy Equity Management Inc. raised its stake in Kelly Services by 28.9% in the 4th quarter. Jacobs Levy Equity Management Inc. now owns 331,536 shares of the business services provider’s stock valued at $7,486,000 after purchasing an additional 74,285 shares during the last quarter. UBS Group AG raised its stake in Kelly Services by 70.7% in the 4th quarter. UBS Group AG now owns 43,689 shares of the business services provider’s stock valued at $987,000 after purchasing an additional 18,095 shares during the last quarter. Public Sector Pension Investment Board lifted its holdings in Kelly Services by 58.3% in the 4th quarter. Public Sector Pension Investment Board now owns 133,267 shares of the business services provider’s stock valued at $3,009,000 after purchasing an additional 49,089 shares in the last quarter. Finally, Hotchkis & Wiley Capital Management LLC lifted its holdings in Kelly Services by 96.6% in the 4th quarter. Hotchkis & Wiley Capital Management LLC now owns 315,391 shares of the business services provider’s stock valued at $7,122,000 after purchasing an additional 155,000 shares in the last quarter. 67.48% of the stock is owned by hedge funds and other institutional investors.

The company has a market capitalization of $670.36 million, a price-to-earnings ratio of 11.28 and a beta of 0.80. The company’s 50 day simple moving average is $20.46 and its 200-day simple moving average is $23.06. The company has a current ratio of 1.52, a quick ratio of 1.52 and a debt-to-equity ratio of 0.04.

About Kelly Services (NASDAQ:KELYA)

Kelly Services, Inc, together with its subsidiaries, provides workforce solutions to various industries worldwide. The company operates through three segments: Americas Staffing, Global Talent Solutions, and International Staffing. It provides trained employees for data entry, clerical, and administrative support roles across various industries; schools with instructional and non-instructional employees; support staff for seminars, sales, and trade shows; assemblers, quality control inspectors, and technicians for electronic assembly; maintenance workers, material handlers, and assemblers for light industrial works; scientists, and scientific and clinical research workforce solutions; engineering professionals across various disciplines, including aeronautical, chemical, civil/structural, electrical/instrumentation, environmental, industrial, mechanical, petroleum, pharmaceutical, quality, and telecommunications.

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