Concentrix Co. (NASDAQ:CNXC) recently announced its quarterly dividend, according to a report by Zacks on September 27th. Shareholders of record as of October 27th will receive a dividend of $0.303 per share on November 7th. This represents an increase from the company’s previous dividend of $0.28 and equates to an annualized dividend of $1.21 with a dividend yield of 1.53%. The ex-dividend date is set for October 26th.
On October 1, 2023, CNXC opened at $79.03 trading on the NASDAQ stock exchange. The company has a debt-to-equity ratio of 0.75 and both quick and current ratios of 1.74, indicating relatively healthy financials. Over the past year, Concentrix has had a low point of $70.58 and a high point of $151.82 in its fifty-two-week range.
At present, the stock has a market capitalization of around $4.11 billion with other key statistics including a price-to-earnings (P/E) ratio of 11.81 and a price-to-earnings-growth (PEG) ratio of 0.67, suggesting the stock may be undervalued compared to its growth prospects in relation to earnings.
Numerous research analyst reports have been published concerning CNXC over recent months with differing opinions on its outlook and target prices for the stock. Barrington Research reduced its price target from $165.00 to $98.00 back in June while Scotiabank gave it a “sector outperform” rating and targeted price at $120 in August.
Bank of America downgraded Concentrix from “buy” to “neutral” in late June and most recently, Redburn Atlantic initiated coverage with another “neutral” rating alongside a target price set at $70.00.
Overall, the consensus rating on CNXC is “Moderate Buy,” based on data from Bloomberg.com, and the average target price is $120.60.
In news unrelated to dividends or analyst reports, Director Kathryn Hayley purchased 300 shares of Concentrix stock on July 3rd at an average cost of $83.93 per share, resulting in a total transaction value of $25,179. This raised the director’s total shares to 2,155 with a value estimated at approximately $180,869.15.
Another executive, EVP Jane Fogarty, also acquired stock in July with the purchase of 400 shares at an average price of $82.85 per share for a total transaction value of $33,140. Following this acquisition, Fogarty now owns 5,217 shares valued at around $432,228.45.
These insider transactions were duly reported by Concentrix in accordance with regulations set out by the Securities & Exchange Commission (SEC).
As of now, around 0.88% of the company’s stock is owned by insiders reflecting their confidence in its performance and future prospects.
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Concentrix Reports Mixed Quarterly Earnings, Analysts Remain Optimistic
Concentrix (NASDAQ:CNXC), a global business services company, recently released its quarterly earnings results on June 28th, leaving investors with mixed sentiments. The company reported an EPS (Earnings per Share) of $2.69 for the quarter, falling short of the consensus estimate of $2.75 by ($0.06). Additionally, Concentrix generated revenue of $1.61 billion during the same period, slightly below analysts’ expectations of $1.66 billion.
Despite the deviation from estimates, Concentrix’s performance remains respectable in light of prevailing market conditions. The company achieved a return on equity of 19.24% and maintained a net margin of 5.35%. Moreover, this quarter’s revenue displayed a modest increase of 3.0% compared to the corresponding period last year when the firm earned $2.74 EPS.
Analysts anticipate that Concentrix will continue to deliver strong results throughout the fiscal year, projecting an earnings per share of 10.7 for the current period. These projections are based on historical data and an understanding of industry trends.
Understanding investor sentiment regarding Concentrix requires analyzing other factors such as hedge fund activity surrounding its stock. According to recent reports, several hedge funds have either bolstered or reduced their positions in Concentrix.
For instance, Quarry LP has entered a new position in Concentrix during the first quarter amounting to approximately $26,000 worth of shares. On another note, State of Wyoming significantly increased its stake by 388.1% during the second quarter and now holds 1,064 shares valued at around $86,000.
Similarly, Royal Bank of Canada bolstered its position in Concentrix by 80.4% during the third quarter and currently possesses 1,097 shares with an estimated worth of $122,000. Advisors Asset Management Inc., on the other hand, augmented its stake by 36.1% during the fourth quarter and now owns 1,214 shares, valued at approximately $162,000.
It is worth noting that institutional investors own a significant portion of Concentrix’s stock as 79.03% of it is currently in their possession. This level of ownership by institutional investors demonstrates their confidence in the company’s long-term prospects and indicates potential stability within the stock.
Moving forward, shareholders and potential investors should continue to monitor Concentrix’s performance closely, keeping abreast of any developments that could impact its financial outlook. While the recent earnings report may have introduced some perplexity amongst stakeholders, analysts’ optimistic projections provide some assurance for the future. By also analyzing hedge fund activity and considering market conditions, individuals can develop a more comprehensive understanding of Concentrix’s position within the industry.
