RemedyTemp Stock Price Drops 17%

RemedyTemp Inc.’s stock tumbled 17% Friday after an analyst lowered his recommendation for the Aliso Viejo-based temporary staffing services company. The stock slumped $3.37 to $16.88 a share after hitting a 52-week low of $15.50 earlier in the session. Analyst John M. Schneller at Stephens Inc. lowered his recommendation to “outperform” from “buy.” He could not be reached for comment, but other analysts pointed out that shares of many companies in the industry have fallen amid concerns about a global recession. Analysts said recession fears trigger concerns that companies may not be hiring as many temporary workers. “Remedy’s correction today should be viewed in the wide context of what’s happening with temporary staff stocks,” said Thomas O’Halloran, an analyst at Warburg Dillon Read LLC. “They’re all getting knocked around.” Remedy’s stock traded as high as $36.25 a share in April.