Resources Connection, Inc. (NASDAQ:RGP) Short Interest Up 20.4% in October

Resources Connection, Inc. (NASDAQ:RGP) was the recipient of a significant growth in short interest during the month of October. As of October 15th, there was short interest totalling 1,130,000 shares, a growth of 20.4% from the September 30th total of 938,900 shares. Approximately 3.5% of the company’s stock are sold short. Based on an average daily volume of 397,400 shares, the short-interest ratio is currently 2.8 days.

Resources Connection Stock Performance

Shares of RGP stock traded up $0.03 during mid-day trading on Wednesday, reaching $8.31. 115,662 shares of the company’s stock traded hands, compared to its average volume of 461,210. The firm has a market capitalization of $278.14 million, a PE ratio of 23.19, a price-to-earnings-growth ratio of 3.29 and a beta of 0.65. Resources Connection has a 12 month low of $8.13 and a 12 month high of $14.63. The firm has a 50 day moving average price of $9.28 and a two-hundred day moving average price of $10.34.

Resources Connection (NASDAQ:RGP) last released its earnings results on Tuesday, October 1st. The company reported ($0.17) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.04 by ($0.21). The firm had revenue of $136.94 million during the quarter, compared to analysts’ expectations of $137.82 million. Resources Connection had a return on equity of 3.69% and a net margin of 2.04%. The company’s revenue was down 19.5% compared to the same quarter last year. During the same period in the prior year, the company posted $0.14 earnings per share. As a group, equities analysts expect that Resources Connection will post 0.16 earnings per share for the current fiscal year.

Resources Connection Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, December 16th. Investors of record on Friday, November 15th will be issued a $0.14 dividend. The ex-dividend date is Friday, November 15th. This represents a $0.56 dividend on an annualized basis and a yield of 6.74%. Resources Connection’s dividend payout ratio is presently 155.56%.

Hedge Funds Weigh In On Resources Connection

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Millennium Management LLC increased its position in Resources Connection by 438.5% in the second quarter. Millennium Management LLC now owns 537,743 shares of the company’s stock worth $5,937,000 after purchasing an additional 437,878 shares during the last quarter. Tieton Capital Management LLC purchased a new stake in shares of Resources Connection in the 2nd quarter worth $4,452,000. Invenomic Capital Management LP bought a new position in Resources Connection during the 1st quarter worth about $3,855,000. Brandes Investment Partners LP bought a new position in shares of Resources Connection during the second quarter valued at approximately $2,590,000. Finally, Deprince Race & Zollo Inc. acquired a new position in shares of Resources Connection in the 2nd quarter valued at $2,522,000. Institutional investors own 93.23% of the company’s stock.

Analysts Set New Price Targets

Several brokerages have issued reports on RGP. StockNews.com cut shares of Resources Connection from a “buy” rating to a “hold” rating in a report on Saturday, July 27th. JPMorgan Chase & Co. dropped their price target on Resources Connection from $12.00 to $11.00 and set an “underweight” rating on the stock in a research note on Tuesday, July 23rd.

Resources Connection Company Profile

Resources Connection, Inc provides consulting services to business customers under the Resources Global Professionals name in North America, Europe, and the Asia Pacific. The company offers services in the areas of transactions, including integration and divestitures, bankruptcy/restructuring, going public readiness and support, financial process optimization, and system implementation; and regulations, such as accounting regulations, internal audit and compliance, data privacy and security, healthcare compliance, and regulatory compliance.