HRT stock rose more than 17% in after-hours trading on March 21, 2022, after the company reported impressive earnings and revenue beats.
- 1 HireRight Reports Fourth Quarter 2021 Results
- 2 HireRight price target lowered to $22 from $30 at Barclays
- 3 HireRight Launches Mexico Subsidiary, Bolstering Offerings In Latin America
- 4 📺 HireRight IPO | HireRight Holdings Corp (HRT) is going public at NYSE, is this a good buy?
- 5 📉 HRT Stock Technical Analysis
HireRight Reports Fourth Quarter 2021 Results
On March 21, 2022, HireRight Holdings (NYSE: HRT), a leading provider of background screening services, announced financial results for its fourth quarter and year ended December 31, 2021. The Company completed its IPO in November 2021. HireRight reported Q4 adjusted EPS of 32c versus the consensus estimate of 7c. The company reported Q4 revenue of $198.5M versus the consensus estimate of $183.35M.
“We completed a transformational year on a high note with record results and growing demand for our services following our initial public offering,” said HireRight President and CEO Guy Abramo. “We grew fourth quarter revenues 32% over the prior year period, and both Adjusted EBITDA and Adjusted EPS more than doubled. The strength of our leadership in this industry continues to be evidenced through our marquee customer base in the healthcare, technology, financial services and transportation industries. We are trusted by the leading companies in each of those industries to deliver the highest quality, timely and compliant background solutions to protect their businesses.
Additionally, we are pleased to expand our leadership abroad with more than 15% of our background screens completed on employees and applicants based outside the U.S. Our internationally driven revenue reached more than $100 million during 2021 and is growing at double digit rates. Our focus for 2022 is on automation and related margin expansion, and I am pleased with our progress to date and look forward to the initial deployments this year. Our guidance for the new year demonstrates the earnings power of our business and the sharp focus of our entire team on creating meaningful long-term shareholder value.”
HireRight price target lowered to $22 from $30 at Barclays
On March 16, 2022, Barclays analyst Manav Patnaik lowered the firm’s price target on HireRight to $22 from $30 and keeps an Overweight rating on the shares. The analyst remains constructive but reduced price targets on the background screeners given the derating in the market and negative narratives he hears from many investors.
HireRight Launches Mexico Subsidiary, Bolstering Offerings In Latin America
On February 22, 2022, HireRight (NYSE: HRT), a leading provider of global background screening services and workforce solutions, now has a legally incorporated subsidiary in Mexico, allowing more targeted regional support for their growing customer base in Latin America.
Although HireRight has been supporting customers from its Mexico City location since 2018, having a legally incorporated subsidiary in the country allows more region-specific services under the leadership of local Mexico-based team members. Customers contracting with HireRight Mexico can receive invoices and make payments in Mexican pesos. This change reflects HireRight’s status as a global yet local supplier for customers in the region, many of whom are Fortune 500 companies in the financial, healthcare, manufacturing, and telecommunication industries.
HireRight has experienced significant growth in Latin America as multi-national employers adopt and expand global employment screening programs. Evolving legislation in Argentina, Brazil, and Mexico reflect a growing regional interest in information verifications. This suggests that regional employers should establish procedures for employment screening to help mitigate risk within the candidate selection process.
“We are excited to continue our global expansion with HireRight’s official legal incorporation of a subsidiary in Mexico,” said Guy Abramo, President and CEO at HireRight. “This underscores our continued commitment to the region of Latin America and highlights our recognition of the vast potential and talent in this market. We look forward to further strengthening HireRight’s connection with our regional customers and continuing to meet the demands of an evolving industry.”
In addition to its existing account management and sales presence in Mexico, HireRight has continued to invest in its service delivery capabilities, including a new local verifications/research team and repositioning other regional business functions, including finance, recruiting and IT into Mexico. Additionally, HireRight offers Spanish-speaking customer service representatives.
“HireRight’s continued investments, including our new HireRight Mexico office, demonstrate our commitment to delivering the local support both within this country and within the broader region of Latin America,” said Ryan Christensen, General Manager of Latin America at HireRight. “We have several exciting initiatives currently in play that will help to further scale locally and continue to improve how we service customers in the region.”
📺 HireRight IPO | HireRight Holdings Corp (HRT) is going public at NYSE, is this a good buy?
📉 HRT Stock Technical Analysis
The long and short-term trends are both positive. Prices have been rising strongly lately, it may be a good idea to wait for a consolidation or pullback before considering an entry. HRT is currently trading in the lower part of its 52-week range, which is not a good signal. The S&P500 Index is trading in the middle of its 52-week range.
There is a resistance zone ranging from 12.85 to 12.94. This zone is formed by a combination of multiple trend lines and important moving averages in the daily time frame.
HRT has an average technical rating and it also does not offer a high-quality setup at the moment. HRT stock has a Setup Rating of 3 out of 10. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when HRT stock consolidates and has a Setup Rating of 8 or higher.