Resources Connection (NASDAQ:RGP) Lifted to “Strong-Buy” at Zacks Investment Research

Zacks Investment Research upgraded shares of Resources Connection (NASDAQ:RGP) from a hold rating to a strong-buy rating in a research note published on Tuesday morning, Zacks.com reports. The brokerage currently has $22.00 target price on the stock.

According to Zacks, “Resources Connection, Inc. is a multinational professional services firm that helps business leaders execute internal initiatives. The company provides experienced accounting and finance, human resources management and information technology professionals to clients on a project-by-project basis. Partnering with business leaders, Resources Connection drives internal change across all parts of a global enterprise – accounting, finance, risk management and internal audit, corporate advisory, strategic communications and restructuring, information management, human capital, supply chain management, healthcare solutions, and legal and regulatory services. “

Separately, Robert W. Baird increased their price objective on shares of Resources Connection from $19.00 to $21.00 and gave the stock an outperform rating in a report on Thursday, January 6th.

Shares of NASDAQ:RGP opened at $18.30 on Tuesday. Resources Connection has a 12 month low of $11.49 and a 12 month high of $20.16. The company’s 50-day moving average price is $17.88 and its two-hundred day moving average price is $16.45. The company has a quick ratio of 2.62, a current ratio of 2.62 and a debt-to-equity ratio of 0.12. The firm has a market cap of $595.24 million, a P/E ratio of 11.96 and a beta of 1.00.

Resources Connection (NASDAQ:RGP) last issued its quarterly earnings data on Tuesday, January 4th. The company reported $0.47 EPS for the quarter, topping analysts’ consensus estimates of $0.33 by $0.14. Resources Connection had a net margin of 7.18% and a return on equity of 16.33%. The firm had revenue of $200.24 million for the quarter, compared to analyst estimates of $189.41 million. During the same quarter in the prior year, the firm earned $0.16 EPS. The company’s revenue was up 30.7% on a year-over-year basis. As a group, equities analysts predict that Resources Connection will post 1.48 earnings per share for the current fiscal year.

The firm also recently announced a quarterly dividend, which was paid on Thursday, December 16th. Stockholders of record on Thursday, November 18th were paid a $0.14 dividend. This represents a $0.56 annualized dividend and a dividend yield of 3.06%. The ex-dividend date was Wednesday, November 17th. Resources Connection’s dividend payout ratio (DPR) is presently 36.60%.

Hedge funds and other institutional investors have recently modified their holdings of the company. Hillsdale Investment Management Inc. bought a new position in Resources Connection during the 3rd quarter worth approximately $5,036,000. Heartland Advisors Inc. boosted its stake in Resources Connection by 59.9% during the 3rd quarter. Heartland Advisors Inc. now owns 532,562 shares of the company’s stock worth $8,404,000 after acquiring an additional 199,540 shares during the last quarter. Goldman Sachs Group Inc. boosted its stake in Resources Connection by 419.4% during the 2nd quarter. Goldman Sachs Group Inc. now owns 178,471 shares of the company’s stock worth $2,563,000 after acquiring an additional 144,107 shares during the last quarter. Morgan Stanley boosted its stake in Resources Connection by 112.8% during the 2nd quarter. Morgan Stanley now owns 253,816 shares of the company’s stock worth $3,645,000 after acquiring an additional 134,515 shares during the last quarter. Finally, Russell Investments Group Ltd. boosted its stake in Resources Connection by 451.2% during the 2nd quarter. Russell Investments Group Ltd. now owns 145,731 shares of the company’s stock worth $2,091,000 after acquiring an additional 119,290 shares during the last quarter. 75.31% of the stock is currently owned by institutional investors.

Resources Connection Company Profile

Resources Connection Inc engages in the provision of business consulting services. It offers 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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