Tampa-based Kforce Inc. (NYSE:KFRC), a professional staffing services firm, disclosed on Friday that it has established a stock repurchase plan under Rule 10b5-1 of the Securities Exchange Act of 1934. This move follows the authorization by the company's Board of Directors to buy back outstanding common stock.
The plan, which is set to begin on Monday, September 16, 2024, and continue until October 30, 2024, will allow Kforce to repurchase its shares through an independent broker. The repurchase activities will adhere to predefined constraints related to price, market, volume, and timing to ensure regulatory compliance and fair trading.
Kforce's decision to implement a stock repurchase plan is a financial strategy that companies often use to reinvest in themselves by reducing the number of outstanding shares on the market, potentially increasing the value of remaining shares.
The specifics of the plan, such as the number of shares to be repurchased or the budget allocated for the buyback, were not disclosed in the filing.
Kforce Inc., with its headquarters located at 1150 Assembly Drive, Suite 500, Tampa, Florida, operates in the staffing services industry under the SIC code 7363. It has been publicly traded since its name change from Romac International Inc. in May 2000.
In other recent news, Kforce Inc. reported a steady second quarter, with a particular focus on technological growth. Despite some ongoing economic uncertainties, the demand for technology resources and new project initiations remained consistent.
The company's second quarter revenues declined 8.4% year-over-year to $356.3 million, with earnings per share of $0.75, which was near the high end of expectations.
In addition, Kforce returned over $15 million to shareholders through dividends and share repurchases during the quarter. The company's operating margin stood at 5.5%, and the effective tax rate was 26.3%. Notably, Kforce is focusing on diversifying its service offerings and has completed the repositioning of its finance and accounting business.
Looking ahead, Kforce anticipates revenues to be between $347 million and $355 million for the third quarter, with earnings per share projected to be $0.65 to $0.73.
The company remains committed to achieving long-term growth and profitability objectives, including double-digit operating margins. These are the recent developments for Kforce Inc.
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