Shares of the San Francisco-based DHI Group Inc., a job recruitment service that uses data collection to place professionals in healthcare, technology, financial, energy, and hospitality positions, traded at an unexpectedly high level last week, garnering increased interest from analysts who are curious to see where the company is going. Overall, share price has been down -32 percent this year, so the jump last week was quite a surprise.
Analysts are keeping a close eye on changes to DHI’s stock (NYSE:DHX), including Thomas Weisel Partners (Thom Weisel), Stifel Nicolaus (Ronald J. Kruszewski), Credit Suisse (Tidjane Thiam), and more. On average, these analysts forecast a $5.75 price target for the stock, though the stock is already up 2.41 percent from recent lows. Nothing is certain, however, until DHI announces its Q1 fiscal earnings on April 26.
DHI Group, Inc. focuses on connecting professionals with the most relevant employment opportunities. Their aim is to make the entire recruitment process more efficient and streamlined by creating and overseeing focused online communities where important connections can be made. In addition, they compile a multitude of information about employment opportunities in a variety of sectors and make it available in searchable formats.
DHI began its life as DICE (Data Processing Independent Consultants Exchange) in 1990. Located in the San Francisco Bay Area, DICE focused on working in the technical field, particularly with contractors, recruitment staff, and consulting firms. By 1999, with the internet quickly gaining popularity, DICE launched itself online and expanded its range of services. By 2007, DICE had completed its IPO and began trading stock on the New York Stock Exchange. In 2015, DICE became DHI Group, Inc., representing its evolution into a more diverse portfolio of websites and services in a wider variety of employment areas. Today, DHI is headquartered in New York City, where the company directly employs 783 professionals and operates under the leadership of CEO Michael P. Durney.
As for the company’s future, technology continues to play a large part. “The fourth quarter was a pivotal period for our company, as we began implementing our tech-focused strategy to reinvigorate growth and ultimately transform our company,” said Durney in a recent press release. “We are laying the groundwork for future growth through our intensified focus on tech professional engagement and recruiting customer pain points.”
DHI’s commitment to tech can be seen in the growth of its Open Web solution, which experienced 59 percent year-over-year growth in the past quarter, up from 14 percent a year ago. The Dice Careers app new download year-to-year growth was at 116 percent in the last quarter, and DHI was selected to be a specialist partner for the launch of Google’s Cloud Jobs API. Clearly, staying on the cutting edge of tech in employment services will continue to drive DHI Group moving forward.
But will these tech advances provide increased success for the company when it comes to stock growth? Only time will tell.