Resources Connection, Inc. (RECN) Receives $16.50 Average PT from Brokerages

Resources Connection, Inc. (NASDAQ:RECN) has been given a consensus recommendation of “Hold” by the six analysts that are covering the firm, MarketBeat reports. One investment analyst has rated the stock with a sell rating, three have given a hold rating and one has given a strong buy rating to the company. The average twelve-month price objective among brokers that have updated their coverage on the stock in the last year is $16.50.

Several brokerages have weighed in on RECN. Zacks Investment Research raised shares of Resources Connection from a “hold” rating to a “buy” rating and set a $21.00 price target for the company in a research report on Wednesday, October 10th. ValuEngine raised shares of Resources Connection from a “hold” rating to a “buy” rating in a research report on Thursday, September 13th. Finally, BidaskClub raised shares of Resources Connection from a “buy” rating to a “strong-buy” rating in a research report on Wednesday, September 5th.

In other news, Director Anthony Cherbak sold 20,000 shares of the firm’s stock in a transaction dated Thursday, October 4th. The shares were sold at an average price of $18.59, for a total value of $371,800.00. Following the completion of the sale, the director now directly owns 33,500 shares of the company’s stock, valued at approximately $622,765. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CAO John D. Bower sold 7,500 shares of the firm’s stock in a transaction dated Friday, October 5th. The stock was sold at an average price of $18.93, for a total transaction of $141,975.00. Following the completion of the sale, the chief accounting officer now directly owns 20,291 shares of the company’s stock, valued at $384,108.63. The disclosure for this sale can be found here. Corporate insiders own 9.80% of the company’s stock.

Several large investors have recently bought and sold shares of the company. BlackRock Inc. lifted its position in shares of Resources Connection by 5.9% in the 2nd quarter. BlackRock Inc. now owns 4,299,275 shares of the business services provider’s stock worth $72,657,000 after purchasing an additional 239,567 shares during the period. Dimensional Fund Advisors LP lifted its position in shares of Resources Connection by 0.3% in the 2nd quarter. Dimensional Fund Advisors LP now owns 2,540,337 shares of the business services provider’s stock worth $42,932,000 after purchasing an additional 8,244 shares during the period. Northern Trust Corp lifted its position in shares of Resources Connection by 0.8% in the 2nd quarter. Northern Trust Corp now owns 392,222 shares of the business services provider’s stock worth $6,629,000 after purchasing an additional 3,104 shares during the period. Deprince Race & Zollo Inc. lifted its position in shares of Resources Connection by 40.9% in the 2nd quarter. Deprince Race & Zollo Inc. now owns 381,409 shares of the business services provider’s stock worth $6,446,000 after purchasing an additional 110,687 shares during the period. Finally, Confluence Investment Management LLC purchased a new stake in shares of Resources Connection in the 3rd quarter worth about $5,713,000. 80.74% of the stock is owned by hedge funds and other institutional investors.

RECN stock opened at $16.43 on Wednesday. The company has a debt-to-equity ratio of 0.22, a quick ratio of 2.37 and a current ratio of 2.37. Resources Connection has a 52 week low of $13.20 and a 52 week high of $19.50. The firm has a market cap of $514.78 million, a P/E ratio of 18.13 and a beta of 1.02.

Resources Connection (NASDAQ:RECN) last released its earnings results on Wednesday, October 3rd. The business services provider reported $0.18 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.11 by $0.07. Resources Connection had a net margin of 3.25% and a return on equity of 10.89%. The company had revenue of $178.60 million for the quarter, compared to analyst estimates of $173.60 million. During the same quarter last year, the firm earned $0.12 EPS. The firm’s quarterly revenue was up 26.5% compared to the same quarter last year. Research analysts expect that Resources Connection will post 0.87 earnings per share for the current year.

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 11th. Shareholders of record on Tuesday, November 13th will be given a dividend of $0.13 per share. The ex-dividend date of this dividend is Friday, November 9th. This represents a $0.52 annualized dividend and a yield of 3.16%. Resources Connection’s payout ratio is currently 53.06%.

About Resources Connection

Resources Connection, Inc provides business consulting services under the Resources Global Professionals name in North America, Europe, and the Asia Pacific. The company offers process transformation and optimization, financial reporting and analysis, technical and operational accounting, and merger and acquisition due diligence and integration services; new accounting standards implementation and remediation support services; and audit readiness, and preparation and response services.

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