Kelly Services (NASDAQ:KELYA) Stock Gets Downgrade from Zacks Research

Kelly Services (NASDAQ:KELYA) was downgraded by Zacks Research from a “hold” rating to a “strong sell” rating in a note issued to investors on Monday, Zacks reports.

A number of other equities research analysts have also recently issued reports on KELYA. Weiss Ratings raised shares of Kelly Services from a “sell (d)” rating to a “sell (d+)” rating in a research report on Wednesday, November 4th. Wall Street Zen raised shares of Kelly Services from a “hold” rating to a “buy” rating in a research report on Saturday, October 10th. Finally, Barrington Research lifted their price objective on shares of Kelly Services from $15.00 to $20.00 and gave the stock an “outperform” rating in a research note on Monday, August 10th. One equities research analyst has rated the stock with a Buy rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Reduce” and a consensus target price of $20.00.

Kelly Services Stock Performance

NASDAQ:KELYA opened at $14.04 on Monday. The stock has a 50 day simple moving average of $16.02 and a 200 day simple moving average of $12.68. The stock has a market cap of $487.61 million, a P/E ratio of -3.90, a PEG ratio of 1.01 and a beta of 0.93. Kelly Services has a 1-year low of $7.98 and a 1-year high of $17.75. The company has a current ratio of 1.55, a quick ratio of 1.55 and a debt-to-equity ratio of 0.12.

Kelly Services (NASDAQ:KELYA) last issued its quarterly earnings data on Thursday, November 5th. The business services provider reported $0.07 EPS for the quarter, meeting analysts’ consensus estimates of $0.07. The firm had revenue of $927.20 million for the quarter, compared to analyst estimates of $925.87 million. Kelly Services had a positive return on equity of 2.36% and a negative net margin of 3.08%. Research analysts anticipate that Kelly Services will post 1.04 earnings per share for the current year.

Hedge Funds Weigh In On Kelly Services

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Royce & Associates LP acquired a new stake in shares of Kelly Services during the 3rd quarter worth $205,000. Commonwealth Equity Services LLC acquired a new position in Kelly Services in the third quarter valued at about $438,000. Chicago Partners Investment Group LLC acquired a new position in Kelly Services in the third quarter valued at about $169,000. Signaturefd LLC lifted its position in Kelly Services by 165.4% during the third quarter. Signaturefd LLC now owns 1,754 shares of the business services provider’s stock worth $28,000 after purchasing an additional 1,093 shares during the period. Finally, USA Financial Formulas bought a new stake in Kelly Services during the third quarter worth about $41,000. 76.34% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Kelly Services

Here are the key news stories impacting Kelly Services this week:

• Negative Sentiment: Analysts cut forecasts: Noble Financial lowered its FY2026 EPS estimate to $1.08 from $1.21 and FY2027 to $1.72 from $2.07. Sidoti reduced FY2027 EPS to $1.56 from $1.87, and cut its Q3 2027 estimate to $0.29 from $0.45. Both firms also lowered Q4 2026 estimates: Sidoti to $0.42 from $0.63 and Noble to $0.59 from $0.65. These revisions signal softer profit expectations and are the clearest potential source of downward pressure on KELYA shares.
• Neutral Sentiment: Short-interest report is unclear: A report described a significant increase in short interest but listed total short interest as zero shares, making the data internally inconsistent and difficult to interpret.

Kelly Services Company Profile

Kelly Services is a workforce solutions and staffing company that connects employers with workers across a range of professional and industrial fields. Its services include temporary and contract staffing, direct-hire recruitment, workforce management and related consulting and outsourcing solutions. The company serves organizations in areas such as science and engineering, education, technology, finance, and office and industrial operations. Its offerings are designed to help employers recruit talent and manage workforce needs, while providing job seekers with access to temporary, contract and permanent opportunities.