Today we look at a small-cap consulting services company named Resources Connection Inc. Its trading ticker symbol is RGP. This is my second report on Resources Connection Inc for this portfolio. I last reported on them September 25th.
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 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
I use three key data points to gauge dividend equities or funds like Resources Connection Inc (RGP):
(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether a company has made, is making, and will make money.
RGP Price
Resource's price per share closed at $12.47 Friday. A year ago its price was $14.91. Price per share fell $2.44 or about 16.4% last year.
If RGP's stock trades in the range of $10 to $16 this next year, its recent $12.47 price might rise by $1.53 to reach $14.00 by February 8, 2022.
RGP Dividends
Resources Connection Inc's most recently declared quarterly dividend was $0.14 payable March 18th. Dividends are estimated to total $0.56 per share annually and yield 4.49% at yesterday's $12.47 closing price.
RGP Gains?
Adding the $0.56 annual RGP anticipated dividend to my $1.53 most optimistic price upside shows a $2.09 potential gross gain, per share, to be reduced by any costs to trade the shares.
Put little under $1,000.00 today in Resources Connection Inc at $12.47 per share and we'd buy 80 shares of RGP stock.
A $10 broker fee (if charged) paid half at purchase and half at sale might cost us about $0.13 per share.
Subtract that maybe $0.13 brokerage cost from my estimated $2.09 gross gain per share results in a net gain of $1.96 X 80 shares = $156.80 for a 15.7% net gain on a $997.60 investment.
Resources Connection Inc (RGP) shows a possible 15.7% net gain including a 4.49% dividend yield. It could be more, it could be less.
All of the estimates above are speculation based on the past history of Resources Connection Inc (RGP). Only time and money invested in this stock will determine its worth.
