ManpowerGroup (MAN) Downgraded to Sell at Zacks Investment Research

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Zacks Investment Research lowered shares of ManpowerGroup (NYSE:MAN) from a hold rating to a sell rating in a report published on Monday.

According to Zacks, “ManpowerGroup's bottom line is likely to get affected by the escalation in costs, which are related to investments in digital and restructuring activities. Staffing margin pressure is likely to weigh on the company’s Southern Europe segment. High debt may limit the company’s future expansion and worsen its risk profile. Shares of the company have underperformed its industry in the past year. Despite such negatives, ManpowerGroup continues to benefit from a strong staffing industry, leading to robust manufacturing and non-manufacturing activities and higher corporate spending post the tax reform. Acquisitions have been acting as another growth catalyst. The company’s significant investments in technology, to increase productivity and efficiency, are appreciable.”

Other equities research analysts have also issued reports about the company. BMO Capital Markets decreased their price target on ManpowerGroup from $90.00 to $85.00 and set an outperform rating on the stock in a research report on Monday, October 22nd. They noted that the move was a valuation call. Robert W. Baird decreased their price target on ManpowerGroup from $101.00 to $97.00 and set an outperform rating on the stock in a research report on Monday, October 22nd. Barclays decreased their price target on ManpowerGroup from $90.00 to $85.00 and set an underweight rating on the stock in a research report on Tuesday, October 2nd. Argus decreased their price target on ManpowerGroup from $135.00 to $95.00 and set a buy rating on the stock in a research report on Monday, October 22nd. Finally, Macquarie lowered ManpowerGroup from an outperform rating to a neutral rating and set a $91.00 price target on the stock. in a research report on Tuesday, October 9th. Three research analysts have rated the stock with a sell rating, six have assigned a hold rating and five have assigned a buy rating to the company. ManpowerGroup presently has an average rating of Hold and an average price target of $99.00.

NYSE MAN opened at $70.65 on Monday. The company has a market cap of $4.39 billion, a P/E ratio of 8.20, a price-to-earnings-growth ratio of 1.00 and a beta of 1.35. ManpowerGroup has a one year low of $61.57 and a one year high of $136.93. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.47 and a current ratio of 1.47.

ManpowerGroup (NYSE:MAN) last released its quarterly earnings results on Friday, October 19th. The business services provider reported $2.43 EPS for the quarter, topping the Zacks’ consensus estimate of $2.41 by $0.02. The business had revenue of $5.42 billion for the quarter, compared to analyst estimates of $5.64 billion. ManpowerGroup had a return on equity of 20.02% and a net margin of 2.76%. ManpowerGroup’s revenue for the quarter was down .8% on a year-over-year basis. During the same period in the prior year, the company earned $2.04 EPS. Analysts forecast that ManpowerGroup will post 8.7 earnings per share for the current fiscal year.

The company also recently disclosed a quarterly dividend, which was paid on Friday, December 14th. Shareholders of record on Monday, December 3rd were given a $1.01 dividend. This represents a $4.04 dividend on an annualized basis and a yield of 5.72%. This is a positive change from ManpowerGroup’s previous quarterly dividend of $0.93. The ex-dividend date of this dividend was Friday, November 30th. ManpowerGroup’s dividend payout ratio (DPR) is presently 28.69%.

In other ManpowerGroup news, Director John R. Walter sold 7,403 shares of the stock in a transaction on Thursday, November 15th. The stock was sold at an average price of $77.74, for a total value of $575,509.22. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director William Downe acquired 4,000 shares of the firm’s stock in a transaction on Wednesday, November 28th. The stock was purchased at an average price of $81.21 per share, for a total transaction of $324,840.00. Following the completion of the transaction, the director now directly owns 4,000 shares in the company, valued at approximately $324,840. The disclosure for this purchase can be found here. 1.02% of the stock is currently owned by company insiders.

A number of institutional investors and hedge funds have recently made changes to their positions in MAN. AQR Capital Management LLC boosted its position in ManpowerGroup by 76.5% in the 3rd quarter. AQR Capital Management LLC now owns 2,324,420 shares of the business services provider’s stock valued at $199,807,000 after buying an additional 1,007,534 shares during the last quarter. Thompson Siegel & Walmsley LLC acquired a new position in shares of ManpowerGroup in the 3rd quarter valued at $56,887,000. Neuberger Berman Group LLC lifted its stake in shares of ManpowerGroup by 5,273.7% in the 3rd quarter. Neuberger Berman Group LLC now owns 645,815 shares of the business services provider’s stock valued at $55,514,000 after purchasing an additional 633,797 shares during the period. Fairpointe Capital LLC acquired a new position in shares of ManpowerGroup in the 3rd quarter valued at $44,113,000. Finally, Jennison Associates LLC acquired a new position in shares of ManpowerGroup in the 3rd quarter valued at $23,666,000. Hedge funds and other institutional investors own 94.01% of the company’s stock.

ManpowerGroup Company Profile

ManpowerGroup Inc provides workforce solutions and services in the Americas, Southern Europe, Northern Europe, and the Asia Pacific Middle East region. The company's recruitment service portfolio includes permanent, temporary, and contract recruitment of professionals, as well as administrative and industrial positions.

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