StockNews.com Downgrades Resources Connection (NASDAQ:RGP) to Hold

StockNews.com cut shares of Resources Connection (NASDAQ:RGP) from a buy rating to a hold rating in a research note released on Saturday morning.

Other research analysts have also recently issued research reports about the stock. Robert W. Baird reduced their target price on shares of Resources Connection from $15.00 to $13.00 and set a neutral rating for the company in a report on Thursday, April 4th. Noble Financial began coverage on shares of Resources Connection in a report on Wednesday, May 29th. They set an outperform rating and a $15.00 target price for the company. Finally, JPMorgan Chase & Co. dropped their price target on shares of Resources Connection from $12.00 to $11.00 and set an underweight rating on the stock in a research report on Tuesday, July 23rd. One research analyst has rated the stock with a sell rating, two have given a hold rating and one has given a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of Hold and an average price target of $13.00.

Resources Connection Trading Up 0.9 %

NASDAQ RGP opened at $11.71 on Friday. The company has a fifty day simple moving average of $10.85 and a two-hundred day simple moving average of $12.02. Resources Connection has a 12-month low of $9.70 and a 12-month high of $16.42. The stock has a market cap of $392.99 million, a P/E ratio of 17.74, a P/E/G ratio of 1.17 and a beta of 0.67.

Resources Connection (NASDAQ:RGP) last issued its earnings results on Thursday, July 18th. The company reported $0.28 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.10 by $0.18. Resources Connection had a net margin of 3.32% and a return on equity of 6.19%. The firm had revenue of $148.20 million during the quarter, compared to analysts’ expectations of $140.59 million. During the same quarter last year, the company posted $0.39 earnings per share. The firm’s revenue was down 19.7% compared to the same quarter last year. As a group, sell-side analysts forecast that Resources Connection will post 0.67 earnings per share for the current year.

Resources Connection Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, September 20th. Investors of record on Friday, August 23rd will be given a dividend of $0.14 per share. The ex-dividend date of this dividend is Friday, August 23rd. This represents a $0.56 annualized dividend and a yield of 4.78%. Resources Connection’s dividend payout ratio is presently 84.85%.

Insider Activity at Resources Connection

In related news, Director Roger D. Carlile bought 25,000 shares of the company’s stock in a transaction dated Monday, July 22nd. The shares were acquired at an average price of $11.25 per share, for a total transaction of $281,250.00. Following the completion of the transaction, the director now directly owns 25,000 shares in the company, valued at $281,250. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. In other news, CFO Jennifer Y. Ryu sold 11,650 shares of Resources Connection stock in a transaction dated Wednesday, July 24th. The shares were sold at an average price of $11.25, for a total value of $131,062.50. Following the sale, the chief financial officer now owns 84,481 shares in the company, valued at $950,411.25. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Roger D. Carlile bought 25,000 shares of the company’s stock in a transaction dated Monday, July 22nd. The stock was bought at an average price of $11.25 per share, for a total transaction of $281,250.00. Following the transaction, the director now owns 25,000 shares of the company’s stock, valued at $281,250. The disclosure for this purchase can be found here. 7.36% of the stock is owned by company insiders.

Hedge Funds Weigh In On Resources Connection

Several hedge funds and other institutional investors have recently modified their holdings of RGP. Circumference Group LLC purchased a new position in shares of Resources Connection in the fourth quarter worth about $6,376,000. Invenomic Capital Management LP purchased a new position in shares of Resources Connection in the first quarter worth about $3,855,000. Horrell Capital Management Inc. lifted its stake in shares of Resources Connection by 45.6% in the first quarter. Horrell Capital Management Inc. now owns 655,000 shares of the company’s stock worth $8,620,000 after buying an additional 205,000 shares in the last quarter. Jacobs Levy Equity Management Inc. lifted its stake in shares of Resources Connection by 53.5% in the first quarter. Jacobs Levy Equity Management Inc. now owns 394,820 shares of the company’s stock worth $5,196,000 after buying an additional 137,604 shares in the last quarter. Finally, Access Investment Management LLC raised its stake in Resources Connection by 18,060.8% during the first quarter. Access Investment Management LLC now owns 88,080 shares of the company’s stock worth $1,159,000 after purchasing an additional 87,595 shares during the period. 93.23% of the stock is owned by hedge funds and other institutional investors.

Resources Connection Company Profile

Resources Connection, Inc provides consulting services to business customers under the Resources Global Professionals name in North America, Europe, and the Asia Pacific. The company offers services in the areas of transactions, including integration and divestitures, bankruptcy/restructuring, going public readiness and support, financial process optimization, and system implementation; and regulations, such as accounting regulations, internal audit and compliance, data privacy and security, healthcare compliance, and regulatory compliance.