Zacks Investment Research cut shares of Genpact (NYSE:G) from a hold rating to a sell rating in a research note issued to investors on Thursday morning.
According to Zacks, “Genpact delivered stellar fourth-quarter results. Revenues for the quarter also increased year over year. The company provided an encouraging fiscal 2018 revenue guidance. Genpact’s domain expertise in business analytics, digital and consulting sectors is a key catalyst. Its performance is driven by growth in Global Client BPO and transformation services. Additionally, strong clientele and aggressive share buyback on stable cash flows are tailwinds. However, customer concentration is a concern for the company. Acquisitions have also negatively impacted the company's balance sheet. Additionally, anticipated government regulation in the U.S. over outsourcing (H1B Visa, Cross-border tax) is a headwind. Also, stiff competition from the like Cognizant and Accenture adds to its woes.”
Other equities research analysts have also recently issued reports about the stock. Citigroup dropped their target price on shares of Genpact from $39.00 to $37.50 and set a buy rating for the company in a research report on Tuesday, February 13th. Cantor Fitzgerald reaffirmed a buy rating and issued a $36.00 target price on shares of Genpact in a research report on Tuesday, February 13th. Robert W. Baird reiterated a buy rating and issued a $38.00 price target on shares of Genpact in a research note on Friday, November 10th. BMO Capital Markets increased their price target on shares of Genpact to $35.00 and gave the stock a market perform rating in a research note on Tuesday, February 13th. Finally, JPMorgan Chase & Co. decreased their price target on shares of Genpact from $38.00 to $37.00 and set a neutral rating for the company in a research note on Wednesday, February 14th. One investment analyst has rated the stock with a sell rating, three have given a hold rating and eight have issued a buy rating to the company. Genpact currently has a consensus rating of Buy and a consensus price target of $34.65.
Genpact (NYSE:G) last posted its earnings results on Monday, February 12th. The business services provider reported $0.43 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.41 by $0.02. Genpact had a net margin of 9.61% and a return on equity of 23.53%. The firm had revenue of $734.41 million during the quarter, compared to analysts’ expectations of $723.55 million. During the same period last year, the company posted $0.43 EPS. The company’s quarterly revenue was up 7.7% compared to the same quarter last year. research analysts predict that Genpact will post 1.55 earnings per share for the current year.
The firm also recently declared a quarterly dividend, which will be paid on Wednesday, March 21st. Investors of record on Friday, March 9th will be paid a $0.075 dividend. This represents a $0.30 annualized dividend and a dividend yield of 0.95%. This is a positive change from Genpact’s previous quarterly dividend of $0.06. The ex-dividend date is Thursday, March 8th. Genpact’s dividend payout ratio (DPR) is presently 17.91%.
In other Genpact news, SVP Arvinder Singh sold 22,855 shares of the firm’s stock in a transaction dated Friday, December 15th. The shares were sold at an average price of $32.23, for a total transaction of $736,616.65. Following the completion of the sale, the senior vice president now directly owns 37,623 shares in the company, valued at approximately $1,212,589.29. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, SVP Piyush Mehta sold 12,500 shares of the firm’s stock in a transaction dated Monday, November 27th. The shares were sold at an average price of $32.00, for a total transaction of $400,000.00. Following the sale, the senior vice president now owns 77,944 shares of the company’s stock, valued at $2,494,208. The disclosure for this sale can be found here. Over the last quarter, insiders sold 164,934 shares of company stock valued at $5,346,881. 1.41% of the stock is owned by company insiders.
Large investors have recently added to or reduced their stakes in the business. American International Group Inc. bought a new stake in Genpact during the 4th quarter valued at about $114,000. Meeder Asset Management Inc. bought a new stake in Genpact during the 3rd quarter valued at about $128,000. Advisor Group Inc. increased its stake in Genpact by 59.8% during the 3rd quarter. Advisor Group Inc. now owns 5,017 shares of the business services provider’s stock valued at $145,000 after purchasing an additional 1,878 shares in the last quarter. The Manufacturers Life Insurance Company increased its stake in Genpact by 7.5% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 6,508 shares of the business services provider’s stock valued at $181,000 after purchasing an additional 455 shares in the last quarter. Finally, Verition Fund Management LLC bought a new stake in Genpact during the 2nd quarter valued at about $210,000. Institutional investors and hedge funds own 92.00% of the company’s stock.
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Genpact Company Profile
Genpact Limited is engaged in providing digitally powered business process management and services. The Company is also engaged in designing, transforming and running a combination of processes, as well as providing solutions that combine elements of its service offerings. The Company’s segments include Business process outsourcing and Information technology services.
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