Dirk A. Kempthorne, a director at Robert Half Inc. (NYSE:RHI), recently sold a portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Kempthorne sold 1,032 shares of common stock on November 26, 2024, at a price of $74.35 per share. The total value of the transaction amounted to $76,729. Following this sale, Kempthorne holds 12,310 shares of Robert Half Inc. The company, known for its staffing services, continues to be a significant player in the help supply services industry.
In other recent news, Robert Half International Inc (NYSE:RHI). has been under the spotlight after CL King cut its price target for the company to $80 from $85, but maintained a Buy rating. The company's third-quarter results showed an adjusted earnings per share of $0.64, beating the consensus estimate of $0.62. Despite this, a year-over-year decrease in earnings was observed, down from $0.90 in the same quarter of the previous year.
The company's revenue for the third quarter fell by approximately 6% year over year, reflecting a persistent slump in staffing demand. Robert Half's earnings before interest and taxes (EBIT) margins also saw a year-over-year decline, dropping by approximately 220 basis points.
On a positive note, Protiviti, a subsidiary of Robert Half, reported a 5% increase in revenues, reaching $511 million. Looking ahead, the company has provided Q4 revenue guidance set between $1.34 billion and $1.44 billion, with earnings per share projected at $0.47 to $0.60. These recent developments reflect the resilience of Robert Half amid challenging market conditions.
InvestingPro Insights
While Dirk A. Kempthorne's recent sale of Robert Half Inc. (NYSE:RHI) shares might raise questions, it's essential to consider the broader financial context of the company. According to InvestingPro data, Robert Half maintains a strong financial position with a market capitalization of $7.58 billion. The company's P/E ratio stands at 27.09, suggesting investors are willing to pay a premium for its earnings.
One of the key strengths highlighted by InvestingPro Tips is that Robert Half holds more cash than debt on its balance sheet, indicating financial stability. This solid financial footing is further reinforced by the fact that the company's liquid assets exceed short-term obligations, providing a cushion against potential market volatilities.
Investors may find comfort in Robert Half's consistent dividend policy. An InvestingPro Tip reveals that the company has raised its dividend for 21 consecutive years, demonstrating a commitment to shareholder returns. The current dividend yield is 2.84%, which could be attractive to income-focused investors.
However, it's worth noting that 7 analysts have revised their earnings downwards for the upcoming period, according to another InvestingPro Tip. This, coupled with the expectation of a sales decline in the current year, may explain some of the caution surrounding the stock.
Despite these challenges, Robert Half has shown resilience, with a strong return of 18.35% over the last three months. The company's profitability over the last twelve months and analysts' predictions of profitability for this year suggest underlying strength in its business model.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. In fact, there are 11 more InvestingPro Tips available for Robert Half, which could provide valuable context for understanding the company's current position and future prospects.
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