In a recent transaction reported to the Securities and Exchange Commission, Daniel H. Malan, Senior Vice President at Kelly Services Inc. (NASDAQ:KELYA), acquired 3,500 shares of the company's Class A common stock. The shares were purchased at an average price of $13.88 each, amounting to a total investment of $48,584. Following this transaction, Malan holds a total of 95,906 shares directly. This acquisition reflects a continued interest and investment in the company by its senior leadership.
In other recent news, Kelly Services reported mixed outcomes in its Q3 earnings amid market volatility. The staffing agency's total revenue for the third quarter of 2024 was $1.04 billion, down from $1.12 billion in the same period last year. This decrease was primarily due to the sale of the company's European staffing business. However, the Education and Professional & Industrial segments showed significant growth, with an 11% increase in the Education segment and a 4% sequential growth in the Professional & Industrial segment.
Adjusted earnings per share fell to $0.21, reflecting higher interest expenses and integration costs from the acquisition of Motion Recruitment Partners. Despite these challenges, Kelly Services maintains a positive outlook, projecting an organic revenue growth of 1.5% to 2.5% for Q4. The company also anticipates the Education segment to increase revenue after the school year starts and expects an additional $120 million in revenue from the Motion Recruitment Partners acquisition.
These are just a few of the recent developments at Kelly Services. The company remains cautiously optimistic, focusing on capturing market share and expanding into high-growth markets. The integration of Motion Recruitment Partners is also expected to contribute to the company's potential benefit from market stabilization and organic growth in the upcoming quarters.
InvestingPro Insights
Daniel H. Malan's recent purchase of Kelly Services Inc. (NASDAQ:KELYA) shares aligns with several key insights from InvestingPro. The stock's current trading position near its 52-week low and its significant price decline over the past three and six months suggest that Malan may view this as an attractive entry point. This perspective is further supported by InvestingPro Tips indicating that KELYA is trading at a low Price / Book multiple and a low P/E ratio relative to near-term earnings growth.
InvestingPro data reveals that Kelly Services has a market capitalization of $496.76 million and a P/E ratio of 12.34, which drops to 9.25 when adjusted for the last twelve months. This relatively low valuation is particularly interesting given that the company's net income is expected to grow this year, according to InvestingPro Tips.
Despite recent market challenges, Kelly Services maintains a solid financial foundation. The company's liquid assets exceed short-term obligations, and it has maintained dividend payments for 14 consecutive years, with a current dividend yield of 2.15%. These factors may contribute to the confidence displayed by insiders like Malan in the company's long-term prospects.
For investors seeking a more comprehensive analysis, InvestingPro offers 15 additional tips for Kelly Services, providing a deeper understanding of the company's financial health and market position.
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