Timothy Dupree Executes Sell Order: Offloads $93K In Kelly Services Stock

Making a noteworthy insider sell on November 30, Timothy Dupree, Senior Vice President at Kelly Services KELYA, is reported in the latest SEC filing.

What Happened: Dupree opted to sell 4,500 shares of Kelly Services, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The transaction's total worth stands at $93,662.

During Friday's morning session, Kelly Services shares down by 0.0%, currently priced at $20.79.

About Kelly Services

Kelly Services Inc is a provider of workforce solutions and consulting and staffing services. The company's operations are divided into five business segments namely Professional & Industrial, Science, Engineering & Technology, Education, Outsourcing & Consulting, and International. Other than OCG, each segment delivers talent through staffing services, permanent placement or outcome-based services. OCG segment delivers talent solutions including managed service provider, payroll process outsourcing, recruitment process outsourcing, and talent advisory services. International also delivers RPO talent solutions within its local markets. Majority of revenue is derived from Professional & Industrial.

Breaking Down Kelly Services's Financial Performance

Revenue Growth: Kelly Services's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2023, the company experienced a revenue decline of approximately -4.27%. This indicates a decrease in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Holistic Profitability Examination:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 20.44%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Kelly Services's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.18.

Debt Management: Kelly Services's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.05.

Exploring Valuation Metrics Landscape:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 31.98, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.16 is lower than the industry average, implying a discounted valuation for Kelly Services's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 8.71 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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Navigating the Impact of Insider Transactions on Investments

It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

The Insider's Guide to Important Transaction Codes

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Kelly Services's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.