Not a good buy right now: the setup is dominated by fundamental deterioration (2025/Q3 losses) plus heavy insider selling, while earnings is imminent (Feb 12) with elevated options-implied volatility.
Pre-market strength (~11.03, +2.04%) looks more like a short-term bounce into nearby resistance than a high-conviction trend reversal.
With an impatient entry requirement, the risk/reward ahead of earnings is unfavorable; the cleaner trade is to avoid/exit rather than buy.
Technical Analysis
Trend/momentum: MACD histogram is above 0 (0.0652) but positively contracting, suggesting bullish momentum is weakening rather than accelerating.
RSI(6)=61.79: mildly strong but still neutral—doesn’t confirm an overbought breakout.
Moving averages: converging MAs indicate consolidation/indecision, consistent with a range rather than a clear uptrend.
Key levels: Pivot 10.557; resistance R1 11.147 (price is already close pre-market), then R2 11.511. Support S1 9.966. Upside to R1 is limited versus downside back toward S1 if earnings/news disappoint.
Pattern stats: similar-pattern model suggests only modest expected drift (+1.64% next day; +2.72% next week), not enough edge to justify taking earnings risk.
Positioning/skew: Put/Call OI ratio at 0.08 indicates overwhelmingly call-heavy open interest (bullish/speculative leaning).
Volume: Put/Call volume ratio 0.0 with very low absolute volume (calls=6, puts=0) means today’s tape is thin; sentiment read is noisy.
Volatility: 30D IV 89.18 vs historical vol 40.64 with IV percentile 85.66 → market is pricing a large move (earnings-driven), making outright longs less attractive unless you’re specifically trading the event.
Takeaway: options imply an event and skew bullish, but the high IV signals expensive premium and heightened downside gap risk into earnings.
Technical Summary
Sell
3
Buy
8
Positive Catalysts
and pushing toward R1 (11.147), which can attract short-term momentum buyers if it breaks and holds.
Neutral/Negative Catalysts
Insider activity: Insiders are selling, with a sharply increased selling amount over the last month—bearish signal for near-term confidence.
Earnings risk: elevated IV and upcoming report increase the chance of a large gap down if results/outlook disappoint.
Governance/leadership churn: new chairman and multiple board resignations (five members) adds uncertainty.
Profitability: Net income -150.1M (sharp deterioration YoY); EPS -4.25 (major decline).
Margins: Gross margin 20.75%, down -2.86% YoY.
Overall: clear downtrend in growth and profitability; fundamentals do not currently support “buy now” behavior ahead of earnings.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Latest update (2025-11-11): Barrington kept Outperform but cut price target to $16 from $25 after results missed expectations and outlook was described as soft.
Wall Street pros: still sees longer-term upside (maintained Outperform) if operations normalize and macro headwinds ease.
Wall Street cons: large target cut signals reduced confidence/visibility; macro headwinds and recent shortfalls remain the key bear case.
Wall Street analysts forecast KELYA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KELYA is 16.5 USD with a low forecast of 16 USD and a high forecast of 17 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
Wall Street analysts forecast KELYA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KELYA is 16.5 USD with a low forecast of 16 USD and a high forecast of 17 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 10.800
Low
16
Averages
16.5
High
17
Current: 10.800
Low
16
Averages
16.5
High
17
Barrington
Kevin Steinke
Outperform
to
NULL
downgrade
$25 -> $16
AI Analysis
2025-11-11
Reason
Barrington
Kevin Steinke
Price Target
$25 -> $16
AI Analysis
2025-11-11
downgrade
Outperform
to
NULL
Reason
Barrington analyst Kevin Steinke lowered the firm's price target on Kelly Services to $16 from $25 and keeps an Outperform rating on the shares. The company's Q2 results missed expectations and it noted that macroeconomic dynamics had an increased negative impact on performance, the analyst tells investors in a research note. The firm cites the Q3 shortfall and "soft" Q4 outlook for the target cut.
Barrington
Outperform
maintain
$25
2025-09-12
Reason
Barrington
Price Target
$25
2025-09-12
maintain
Outperform
Reason
Barrington views Kelly Services shares as \"significantly undervalued\" after hosting investor meetings with management. The company is undertaking a strategic transformation that has positioned it as a leading provider of \"faster-growing and higher-margin\" specialty staffing and workforce solutions focused in North America, the analyst tells investors in a research note. The firm says Kelly is valued at a substantial discount to other publicly-traded staffing companies, which offers a \"compelling investment opportunity.\" It keeps an Outperform rating on the shares with a $25 price target.
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