Conduent (NYSE:CNDT) Downgraded to “Sell” at Zacks Investment Research

Zacks Investment Research cut shares of Conduent (NYSE:CNDT) from a hold rating to a sell rating in a research report sent to investors on Wednesday, Zacks.com reports.

According to Zacks, “Conduent Incorporated is a business process services company. It engaged in providing business and government services to citizens, patients, customers and employees. The services rendered by the company include healthcare solutions, BPO services, learning services, digital payments, legal and compliance solutions, human resources, finance and accounting, procurement solutions and digital transformation. The company serves aerospace defence and automotive services, banking, communication and media, healthcare, industrial and energy, insurance, retail and consumer products and transportation industries. Conduent Incorporated is based in Basking Ridge, N.J. “

Several other research firms also recently weighed in on CNDT. JPMorgan Chase & Co. raised shares of Conduent from a neutral rating to an overweight rating and set a $8.00 target price for the company in a research report on Friday, August 9th. Needham & Company LLC lowered their price objective on shares of Conduent from $25.00 to $14.00 and set a buy rating for the company in a research report on Thursday, May 9th. They noted that the move was a valuation call. Cross Research downgraded shares of Conduent from a buy rating to a hold rating in a research report on Wednesday, May 8th. Citigroup downgraded shares of Conduent from a buy rating to a neutral rating and set a $9.50 price objective for the company. in a research report on Thursday, May 9th. Finally, Cowen set a $8.00 price objective on shares of Conduent and gave the company a hold rating in a research report on Friday, August 9th. Two analysts have rated the stock with a sell rating, five have assigned a hold rating and three have assigned a buy rating to the company’s stock. Conduent has an average rating of Hold and a consensus price target of $12.69.

Shares of CNDT traded down $0.18 during mid-day trading on Wednesday, reaching $6.42. 1,243,445 shares of the company’s stock were exchanged, compared to its average volume of 2,665,489. The company has a debt-to-equity ratio of 0.61, a quick ratio of 1.28 and a current ratio of 1.28. The stock’s 50-day simple moving average is $8.87. Conduent has a 52-week low of $5.26 and a 52-week high of $23.39. The company has a market cap of $1.35 billion, a P/E ratio of 6.11 and a beta of 1.69.

Conduent (NYSE:CNDT) last released its earnings results on Thursday, August 8th. The company reported $0.13 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.17 by ($0.04). The firm had revenue of $1.11 billion during the quarter, compared to analysts’ expectations of $1.10 billion. Conduent had a positive return on equity of 5.71% and a negative net margin of 35.30%. The firm’s revenue was down 19.8% on a year-over-year basis. During the same period in the previous year, the firm posted $0.29 earnings per share. On average, equities research analysts predict that Conduent will post 0.75 EPS for the current fiscal year.

In other news, major shareholder Carl C. Icahn bought 3,076,378 shares of Conduent stock in a transaction on Monday, August 12th. The stock was purchased at an average cost of $6.43 per share, with a total value of $19,781,110.54. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, major shareholder Carl C. Icahn bought 211,159 shares of Conduent stock in a transaction on Wednesday, May 22nd. The shares were purchased at an average cost of $9.00 per share, with a total value of $1,900,431.00. The disclosure for this purchase can be found here. In the last ninety days, insiders have purchased 3,894,711 shares of company stock valued at $27,079,318. Insiders own 0.92% of the company’s stock.

A number of institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. lifted its stake in shares of Conduent by 0.7% in the 2nd quarter. Vanguard Group Inc. now owns 16,786,451 shares of the company’s stock worth $160,983,000 after acquiring an additional 111,948 shares during the period. BlackRock Inc. lifted its stake in shares of Conduent by 45.2% in the 2nd quarter. BlackRock Inc. now owns 12,614,118 shares of the company’s stock worth $120,969,000 after acquiring an additional 3,929,210 shares during the period. Iridian Asset Management LLC CT lifted its stake in shares of Conduent by 64.8% in the 1st quarter. Iridian Asset Management LLC CT now owns 10,310,544 shares of the company’s stock worth $142,595,000 after acquiring an additional 4,054,551 shares during the period. Wedge Capital Management L L P NC acquired a new stake in shares of Conduent in the 2nd quarter worth approximately $67,467,000. Finally, Dimensional Fund Advisors LP lifted its stake in shares of Conduent by 12.0% in the 4th quarter. Dimensional Fund Advisors LP now owns 6,108,627 shares of the company’s stock worth $64,935,000 after acquiring an additional 653,904 shares during the period. 90.07% of the stock is owned by hedge funds and other institutional investors.

About Conduent

Conduent Incorporated provides business process services with capabilities in transaction-intensive processing, analytics, and automation in the United States and Europe. It operates through three segments: Commercial Industries, Government Services, and Transportation. The Commercial Industries segment offers business process services and customized solutions to clients in various industries.

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