Zacks Investment Research upgraded shares of Genpact (NYSE:G) from a sell rating to a hold rating in a research report released on Thursday, Zacks.com reports. Zacks Investment Research currently has $43.00 target price on the business services provider’s stock.
According to Zacks, “Genpact continues to enjoy a competitive position in the BPO services market based on domain expertise in business analytics, digital and consulting. Genpact’s expertise in providing BPO services should continue to expand its customer base. Acquisitions have helped its expand product portfolio as well as gain new domain expertise. Artificial Intelligence presents significant growth opportunities. The company's shareholder-friendly moves boost investors' confidence and positively impact earnings per share and consequently its share price, which has outperformed its industry in the past year. On the flip side, Genpact continues to face significant client concentration in terms of geographic location. Frequent acquisitions have negatively impacted the company's balance sheet. Seasonality causes considerable fluctuations in revenues.”
Other equities analysts have also issued reports about the stock. Wedbush lifted their price objective on shares of Genpact from $33.00 to $45.00 and gave the company a neutral rating in a research report on Thursday, August 8th. Bank of America boosted their target price on shares of Genpact from $40.00 to $43.00 and gave the stock a buy rating in a research report on Thursday, August 8th. Deutsche Bank boosted their target price on shares of Genpact from $36.00 to $44.00 and gave the stock a hold rating in a research report on Thursday, August 8th. Needham & Company LLC restated a buy rating and set a $48.00 target price (up from $44.00) on shares of Genpact in a research report on Thursday, August 8th. Finally, Cantor Fitzgerald boosted their target price on shares of Genpact from $40.00 to $47.00 and gave the stock an overweight rating in a research report on Thursday, August 8th. Five research analysts have rated the stock with a hold rating and seven have issued a buy rating to the company’s stock. Genpact currently has an average rating of Buy and an average target price of $39.70.
Genpact (NYSE:G) last posted its quarterly earnings data on Wednesday, August 7th. The business services provider reported $0.41 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.41. Genpact had a net margin of 8.77% and a return on equity of 21.87%. The firm had revenue of $882.79 million for the quarter, compared to analyst estimates of $824.84 million. During the same period last year, the firm posted $0.41 EPS. Genpact’s quarterly revenue was up 21.2% on a year-over-year basis. As a group, analysts expect that Genpact will post 1.69 earnings per share for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Friday, September 20th. Shareholders of record on Wednesday, September 11th will be given a dividend of $0.085 per share. The ex-dividend date is Tuesday, September 10th. This represents a $0.34 annualized dividend and a dividend yield of 0.87%. Genpact’s payout ratio is currently 21.25%.
In related news, insider Private Ltd Gic sold 1,878,196 shares of the business’s stock in a transaction dated Friday, August 16th. The shares were sold at an average price of $40.51, for a total value of $76,085,719.96. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, major shareholder Bain Capital Investors Llc sold 10,621,804 shares of the business’s stock in a transaction dated Friday, August 16th. The stock was sold at an average price of $40.51, for a total transaction of $430,289,280.04. The disclosure for this sale can be found here. Insiders have sold a total of 12,580,720 shares of company stock worth $509,578,468 over the last 90 days. Insiders own 1.86% of the company’s stock.
Several institutional investors have recently added to or reduced their stakes in G. Dimensional Fund Advisors LP boosted its position in shares of Genpact by 1.5% in the 4th quarter. Dimensional Fund Advisors LP now owns 1,548,278 shares of the business services provider’s stock worth $41,787,000 after buying an additional 22,967 shares in the last quarter. Geode Capital Management LLC raised its stake in Genpact by 5.1% in the 4th quarter. Geode Capital Management LLC now owns 1,360,061 shares of the business services provider’s stock valued at $36,708,000 after purchasing an additional 65,798 shares during the last quarter. SG Americas Securities LLC acquired a new position in Genpact in the 1st quarter valued at about $357,000. Sigma Planning Corp acquired a new position in Genpact in the 1st quarter valued at about $238,000. Finally, New York State Teachers Retirement System acquired a new position in Genpact in the 1st quarter valued at about $77,000. Institutional investors and hedge funds own 94.71% of the company’s stock.
Genpact Company Profile
Genpact Limited provides business process outsourcing and information technology (IT) services North and Latin America, India, rest of Asia, and Europe. Its finance and accounting services include accounts payable, such as document management, invoice processing, approval and resolution management, and travel and expense processing; invoice-to-cash services, including customer master data management, credit and contract management, fulfillment, billing, collections, and dispute management services; record to report services comprising accounting, treasury, tax, product cost accounting, and closing and reporting services; enterprise performance management consisting of budgeting, forecasting, and business performance reporting; and enterprise risk and compliance services, including operational risks and controls.
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