Resources Connection Inc. (NASDAQ:RECN)’s share price fell 11.5% on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $12.41 and last traded at $13.25, with a volume of 520,072 shares changing hands. The stock had previously closed at $14.97.
The company reported $0.15 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.16 by $0.01. Resources Connection had a return on equity of 8.86% and a net margin of 5.09%. The company had revenue of $143.40 million for the quarter. During the same quarter in the previous year, the business posted $0.19 earnings per share. The firm’s revenue for the quarter was down 3.3% on a year-over-year basis.
The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, September 21st. Investors of record on Wednesday, August 24th were paid a $0.11 dividend. This represents a $0.44 dividend on an annualized basis and a yield of 3.36%. This is a boost from Resources Connection’s previous quarterly dividend of $0.10. The ex-dividend date was Monday, August 22nd. Resources Connection’s dividend payout ratio is presently 54.32%.
RECN has been the topic of a number of research reports. JPMorgan Chase & Co. reissued a “hold” rating on shares of Resources Connection in a research note on Thursday. Deutsche Bank AG initiated coverage on shares of Resources Connection in a research note on Wednesday, August 17th. They issued a “sell” rating and a $13.00 price objective on the stock. Zacks Investment Research cut shares of Resources Connection from a “hold” rating to a “sell” rating in a research note on Tuesday, July 19th. Finally, Robert W. Baird cut shares of Resources Connection from an “outperform” rating to a “neutral” rating in a research note on Thursday.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. BlackRock Fund Advisors raised its position in Resources Connection by 0.9% in the second quarter. BlackRock Fund Advisors now owns 2,401,325 shares of the company’s stock worth $35,492,000 after buying an additional 21,719 shares during the period. Dimensional Fund Advisors LP raised its position in Resources Connection by 3.4% in the second quarter. Dimensional Fund Advisors LP now owns 2,234,699 shares of the company’s stock worth $33,028,000 after buying an additional 73,131 shares during the period. Royce & Associates LP raised its position in Resources Connection by 200.8% in the second quarter. Royce & Associates LP now owns 2,230,539 shares of the company’s stock worth $32,967,000 after buying an additional 1,489,000 shares during the period. Palisade Capital Management LLC NJ raised its position in Resources Connection by 19.5% in the first quarter. Palisade Capital Management LLC NJ now owns 766,524 shares of the company’s stock worth $11,927,000 after buying an additional 124,910 shares during the period. Finally, Norges Bank purchased a new position in Resources Connection during the fourth quarter worth about $8,547,000. Institutional investors own 87.39% of the company’s stock.
The stock has a market cap of $474.08 million, a P/E ratio of 16.15 and a beta of 1.31. The stock’s 50-day moving average price is $14.75 and its 200-day moving average price is $14.86.
About Resources Connection
Resources Connection, Inc is a multinational consulting firm. The Company’s operating entities primarily provide services under the name Resources Global Professionals (RGP). It provides consulting and business initiative support services to its global client base in the areas of accounting; finance; corporate governance, risk and compliance management; corporate advisory, strategic communications and restructuring; information management; human capital; supply chain management; healthcare solutions, and legal and regulatory.
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