Research analysts at The Goldman Sachs Group have revised their price target for Korn/Ferry International (NYSE:KFY) from $85.00 to $74.00, as detailed in a report issued on Friday, October 31, 2023. Despite the price adjustment, Goldman Sachs maintains a “buy” rating on the business services provider’s stock. This target price suggests a potential upside of approximately 14.02% based on the stock’s previous close.
In a separate analysis, Weiss Ratings reaffirmed a “buy (b-)” rating for Korn/Ferry International on the same day. Currently, three equity research analysts have assigned a Buy rating to the stock, while one has issued a Hold rating. MarketBeat.com reports that the average rating for Korn/Ferry is a “Moderate Buy,” with a consensus target price set at $78.67.
Korn/Ferry International’s stock opened at $64.90 on Friday, showcasing a market capitalization of $3.40 billion. The firm has a price-to-earnings ratio of 13.78 and a beta of 1.49. Financial metrics indicate a debt-to-equity ratio of 0.21 and both a current and quick ratio of 2.21. Over the past year, Korn/Ferry has experienced a low of $59.23 and a high of $80.49.
In its latest quarterly earnings report released on September 9, 2023, Korn/Ferry International reported earnings per share (EPS) of $1.31, surpassing the consensus estimate of $1.24 by $0.07. The company’s revenue for the quarter reached $708.61 million, exceeding analysts’ expectations of $688.72 million. Korn/Ferry also recorded a return on equity of 14.55% and a net margin of 8.95%. Notably, revenue increased by 4.8% compared to the same period last year, when it posted an EPS of $1.17. The company has set a guidance for Q2 2026 of $1.230 – $1.33 EPS.
In a strategic move, Korn/Ferry International announced on September 18, 2023, that its board has initiated a stock buyback program, allowing the company to repurchase up to $331.40 million in outstanding shares. This program permits the firm to buy back up to 8.7% of its shares through open market purchases, a sign that the board believes the stock is undervalued.
Institutional investors have shown increased interest in Korn/Ferry International. CIBC Bancorp USA Inc. made a new investment in the company during the third quarter, amounting to approximately $386,000. Danske Bank A S also acquired a new stake valued at $56,000. Additionally, Kestra Private Wealth Services LLC increased its position by 3.9%, now holding 9,655 shares valued at $676,000. Castleark Management LLC similarly raised its stake by 3.9%, owning 77,641 shares valued at $5.43 million. Meanwhile, CANADA LIFE ASSURANCE Co increased its holdings by 9.9%, now owning 77,269 shares worth $5.42 million. Collectively, hedge funds and institutional investors own 98.82% of Korn/Ferry International’s stock.
Korn/Ferry International, along with its subsidiaries, offers organizational consulting services globally. It operates across four segments: Consulting, Digital, Executive Search, and Recruitment Process Outsourcing (RPO) & Professional Search. The company specializes in executive search services aimed at recruiting board-level, chief executive, and senior management talent for various organizations.
