TAMPA, FL – Kforce Inc. (NYSE:KFRC), a professional staffing services firm with a market capitalization of $1.1 billion and "GOOD" financial health rating according to InvestingPro, has announced a new stock repurchase plan, signaling confidence in the company's financial health and future prospects.
Under the plan, which was disclosed in a recent SEC filing, Kforce is authorized to buy back its own shares starting Monday and extending through February 5, 2025. Want deeper insights? InvestingPro subscribers have access to 12 additional ProTips and comprehensive financial metrics for KFRC.
This strategic move follows the authorization by Kforce's Board of Directors and complies with the Securities Exchange Act of 1934, specifically under Rule 10b5-1. The rule allows companies to repurchase their shares at times when they might otherwise be prevented from doing so, due to insider knowledge, by setting up a predetermined plan.
This continues Kforce's history of aggressive share buybacks, while maintaining a 13-year streak of consistent dividend payments with 7 consecutive years of dividend increases.
The repurchase program is designed to be carried out by an independent broker and will adhere to set price, market, volume, and timing constraints to ensure compliance with regulatory standards and market fairness.
Kforce's decision to implement this stock buyback plan reflects a common practice among public companies seeking to return value to shareholders, potentially signaling management's belief that the stock is undervalued. It also may serve to increase earnings per share by reducing the number of shares outstanding.
The company has not disclosed specific details regarding the volume of shares it plans to repurchase or the financial allocation for the buyback program. Such repurchases are often viewed positively by the market as they can indicate the company's optimism about its future and the current stock price's attractiveness.
This announcement is based on the company's SEC filing and does not include any promotional commentary or speculative statements about Kforce's market position or future financial performance. The planned share repurchase is subject to market conditions, and the company may suspend or discontinue the program at any time.
In other recent news, Kforce Inc. has reported third-quarter earnings and revenues that surpassed market expectations. The company announced total revenues of $353.3 million and earnings per share at $0.75. Despite a decline in technology business revenue and a significant drop in the financial and accounting business year-over-year, Kforce remains focused on its long-term growth strategy in technology staffing and solutions.
Kforce also revealed plans for international expansion, including the opening of a development center in Pune, India, by January 2025. This move is intended to enhance service offerings and support managed services for existing U.S clients.
Recently, the company has shown its commitment to social responsibility by announcing a $500,000 donation to hurricane recovery efforts in Florida and the Southeast. Kforce has also returned over $17 million to its shareholders through dividends and stock repurchases in Q3. The company projects Q4 revenue to be between $337 million and $345 million, with EPS of $0.56 to $0.64. These are the recent developments for Kforce Inc.
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