RHI Bears Hold Their Ground as the Print Arrives

Robert Half reports Q2 results tonight with the stock down 7% on the day to $37.85 — a sharp reversal that hands bears their first meaningful win after a 30% rally over the prior month.

The positioning picture has shifted slightly since yesterday's preview, but the core story remains intact. Short interest holds at 21.9% of free float, barely changed on the week, and the ORTEX short score sits at 73.2 — ranking RHI in the 3rd percentile of the universe, meaning almost every other stock is less shorted. Today's selloff has done nothing to loosen the borrow market. Availability is 176%, comfortable enough that shorts face no mechanical pressure to cover, and the cost to borrow remains negligible at 0.54%. That keeps the unwind looking deliberate rather than forced. Options positioning has edged more defensive: the put/call ratio climbed to 0.65 today, nearly 1.8 standard deviations above its 20-day mean of 0.46 — the most cautious reading in weeks, though still well below the elevated levels seen in mid-June.

The analyst community remains unusually split. Truist raised its target to $50 this week, maintaining Buy — a target 32% above where the stock closed yesterday and now sitting well above the consensus mean of $32. Goldman Sachs, by contrast, reaffirmed Sell and lifted its target only to $26, implying a further 31% decline from current levels. That gap between the most bullish and most bearish formal targets is extreme. Bulls see a path back toward $7 billion in annual revenue with margin recovery, anchored by Protiviti's pipeline growth and the cost structure that management has built to leverage a hiring recovery. Bears point to the hard numbers: an 8% year-on-year revenue decline to $1.35 billion last quarter, Contract Talent Solutions off 14%, permanent placement off 10%, and forward guidance that points to further deterioration in the core staffing business.

Peer context adds a wrinkle. MAN surged 32% on the week, with RAND and ADEN up 20% and 24% respectively — the staffing sector broadly saw a sharp re-rating. RHI's 7% drop today runs directly counter to that move, suggesting the market already knows something about the Q2 print or is bracing for guidance that doesn't match the sector optimism.

Tonight's report is ultimately a test of whether the fundamental deterioration in temporary and permanent placement is bottoming — or whether management's optimism about the recovery cycle is running ahead of what the numbers can yet support.