Current Report: Resources Connection

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Resources Connection Inc, has the ticker symbol RGP. This is my very first report on RGP for my Viking portfolio. However, I have reported on and selected RGP  for one of my previous seven portfolios.

Resources Connection Inc provides consulting and business initiative support services primarily through its operative subsidiary, Resources Global Professionals.

The company offers transformation and improvement, financial reporting and analysis, strategy development, and program and project management services and support.

Its clients operate in the accounting, finance, corporate governance, risk and compliance management, corporate advisory, strategic communications and restructuring, information management, human capital, supply chain management, and legal and regulatory sectors.

The company has a strategic alliance with Kotter International, Inc. to accelerate joint business development initiatives.

The company was formerly known as RC Transaction Corp. and changed its name to Resources Connection, Inc. in August 2000.

Resources Connection, Inc. was founded in 1996 and is headquartered in Irvine, California.

Three key data points gauge Resources Connection, Inc:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

RGP Price

Resources’ price per share was $18.29 at Monday’s market close. However, in the past year, RGP’s share price rose by $0.49 or about 2.7%.

If Resources’ stock trades in the range of $15.00 to $25.00 this next year, it's recent $18.29 per share price might reach $22.00 by next year. My upside increase estimate of $3.71 is $2.00 under the median of annual price target estimates from three analysts covering RGP for brokerages.

RGP Dividends

RGP’s most recently declared quarterly dividend of $0.14 per share equals $0.56 annually and casts a yield of 3.06%.

RGP Returns

Adding the $0.56 annual RGP dividend to my one-year price upside estimate of $3.71 shows a $4.27 potential gross gain per share.

At Monday’s $18.29 closing price, a little over $1000 would buy 55 shares.

A $10 broker fee (if charged), paid half at purchase and a half at the sale, might cost us $0.18 per share.

Subtracting that maybe $0.18 brokerage cost from my estimated $4.27 gross gain per share results in a net gain of $4.19 X 55 shares = $230.45 for a 23% net gain including a 4.06% annual yield.

In a year our $1K investment in shares of Resources Connection, Inc would generate $30.60 in cash dividends. Of course, a single share of RGP stock at today's $18.29 share price is over 1.5 times less than the annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a good time to buy RGP shares based on their dividends for the year 2022-23. The dividend from $1K invested is 1.67 times more than RGP’s single share price. Consider yourself alerted. Now IS the time for Resources Connection, Inc.

All of the estimates above are speculation based on the past history of Resources Connection, Inc. Only time and money invested in this stock will determine its market value.

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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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