Zacks Investment Research lowered shares of Genpact (NYSE:G) from a hold rating to a sell rating in a research note issued to investors on Thursday.
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.”
G has been the topic of several other research reports. Robert W. Baird restated a buy rating and issued a $38.00 target price on shares of Genpact in a research note on Friday, November 10th. Cantor Fitzgerald reiterated a buy rating and set a $36.00 price target on shares of Genpact in a research report on Wednesday, November 8th. Citigroup reduced their price target on shares of Genpact from $39.00 to $37.50 and set a buy rating on the stock in a research report on Tuesday, February 13th. JPMorgan Chase & Co. reduced their price target on shares of Genpact from $38.00 to $37.00 and set a neutral rating on the stock in a research report on Wednesday. Finally, BMO Capital Markets upped their price target on shares of Genpact to $35.00 and gave the stock a market perform rating in a research report on Tuesday, February 13th. One analyst has rated the stock with a sell rating, three have assigned a hold rating and eight have issued a buy rating to the company’s stock. The stock has a consensus rating of Buy and a consensus target price of $34.65.
Genpact (NYSE:G) last issued its earnings results on Monday, February 12th. The business services provider reported $0.43 EPS for the quarter, beating 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 company had revenue of $734.41 million for the quarter, compared to the consensus estimate of $723.55 million. During the same quarter in the previous year, the company earned $0.43 EPS. The firm’s revenue for the quarter was up 7.7% compared to the same quarter last year. sell-side analysts expect that Genpact will post 1.55 earnings per share for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Wednesday, March 21st. Investors of record on Friday, March 9th will be given a dividend of $0.075 per share. This is an increase from Genpact’s previous quarterly dividend of $0.06. The ex-dividend date of this dividend is Thursday, March 8th. This represents a $0.30 annualized dividend and a yield of 0.95%. Genpact’s dividend payout ratio is 17.91%.
In other Genpact news, SVP Piyush Mehta sold 12,500 shares of the business’s stock in a transaction dated Monday, November 27th. The stock was sold at an average price of $32.00, for a total transaction of $400,000.00. Following the completion of the sale, the senior vice president now directly owns 77,944 shares of the company’s stock, valued at approximately $2,494,208. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Private Ltd Gic sold 1,499,806 shares of the business’s stock in a transaction dated Monday, November 20th. The stock was sold at an average price of $30.26, for a total value of $45,384,129.56. The disclosure for this sale can be found here. In the last quarter, insiders have sold 1,664,740 shares of company stock worth $50,731,010. 1.41% of the stock is owned by corporate insiders.
Large investors have recently made changes to their positions in the business. Ameriprise Financial Inc. raised its holdings in Genpact by 70.2% during the 3rd quarter. Ameriprise Financial Inc. now owns 51,396 shares of the business services provider’s stock worth $1,478,000 after purchasing an additional 21,200 shares during the last quarter. Marathon Asset Management LLP raised its holdings in Genpact by 27.7% during the 3rd quarter. Marathon Asset Management LLP now owns 1,356,597 shares of the business services provider’s stock worth $39,002,000 after purchasing an additional 293,931 shares during the last quarter. Bank of Montreal Can raised its holdings in Genpact by 213.4% during the 4th quarter. Bank of Montreal Can now owns 342,157 shares of the business services provider’s stock worth $10,860,000 after purchasing an additional 232,992 shares during the last quarter. BNP Paribas Arbitrage SA raised its holdings in Genpact by 454.5% during the 3rd quarter. BNP Paribas Arbitrage SA now owns 25,319 shares of the business services provider’s stock worth $728,000 after purchasing an additional 20,753 shares during the last quarter. Finally, First Trust Advisors LP raised its holdings in Genpact by 184.8% during the 3rd quarter. First Trust Advisors LP now owns 220,560 shares of the business services provider’s stock worth $6,341,000 after purchasing an additional 143,128 shares during the last quarter. 92.00% of the stock is owned by hedge funds and other institutional investors.
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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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