Kforce Inc. initiates stock repurchase plan

Kforce Inc. (NYSE:KFRC), a professional staffing services firm with a market capitalization of $924 million, has announced the adoption of a stock repurchase plan, as per a recent filing with the Securities and Exchange Commission. The plan, set to commence on Monday, aims to buy back shares of the company’s common stock under certain conditions. According to InvestingPro data, the company has been aggressively buying back shares while maintaining a solid 3.1% dividend yield.

The Tampa-based company’s Board of Directors has authorized the repurchase program, which is in line with Rule 10b5-1 under the Securities Exchange Act of 1934. This rule allows companies to repurchase their own shares at times when they might otherwise be prevented from doing so due to insider trading laws or self-imposed trading blackout periods. The timing is notable as the stock currently trades near its 52-week low, with InvestingPro analysis indicating the stock may be undervalued based on its Fair Value assessment.

The stock repurchase plan is scheduled to start no earlier than March 17, 2025, and will continue until April 30, 2025. During this period, an independent broker will conduct the repurchases on behalf of Kforce Inc., adhering to predefined price, market, volume, and timing conditions to ensure compliance with regulatory requirements.

The announcement indicates Kforce Inc.’s confidence in its financial position and commitment to delivering value to its shareholders. The firm’s decision to activate this plan follows a broader trend among corporations utilizing buybacks as a strategy to manage their capital structure and potentially boost earnings per share.

Jeffrey B. Hackman, Chief Financial Officer of Kforce Inc., signed off on the filing dated today. This move is expected to be closely watched by investors and market analysts as the repurchase plan unfolds over the coming weeks.

In other recent news, Kforce Inc. reported its fourth-quarter 2024 earnings, aligning with Wall Street expectations by posting an earnings per share (EPS) of $0.60 and revenue of $343.8 million. The revenue figure marks a 9% decline year-over-year, reflecting the ongoing challenges in the technology staffing market. Despite meeting earnings forecasts, the company’s stock experienced a decline in after-hours trading, indicating investor caution amid broader market conditions. For the upcoming first quarter of 2025, Kforce anticipates revenue between $330 million and $338 million, with EPS expected to range from $0.44 to $0.52. Analyst firm Baird noted the potential for recovery in technology investments, highlighting the company’s focus on AI and data cleanup services as areas of opportunity. Additionally, Kforce’s strategic initiatives, such as the opening of its India Development Center, are expected to bolster its consulting-oriented services. These developments come as Kforce navigates a cautious market environment, with signs of stabilization in technology staffing offering a glimmer of optimism for future growth.

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