Concentrix (NASDAQ:CNXC) Shares Gap Up on Strong Earnings

Concentrix Co. (NASDAQ:CNXC) gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $45.68, but opened at $51.49. Concentrix shares last traded at $59.86, with a volume of 747,478 shares traded.

The company reported $2.79 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.58 by $0.21. The company had revenue of $2.37 billion for the quarter, compared to analyst estimates of $2.37 billion. Concentrix had a net margin of 2.61% and a return on equity of 16.67%. The firm’s quarterly revenue was down 1.3% on a year-over-year basis. During the same period in the prior year, the firm earned $2.57 EPS.

Concentrix Cuts Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, February 11th. Investors of record on Friday, January 31st were issued a $0.3328 dividend. The ex-dividend date was Friday, January 31st. This represents a $1.33 dividend on an annualized basis and a yield of 2.23%. Concentrix’s payout ratio is 35.85%.

Analysts Set New Price Targets

CNXC has been the subject of a number of research analyst reports. Canaccord Genuity Group dropped their target price on shares of Concentrix from $100.00 to $80.00 and set a “buy” rating for the company in a research report on Thursday, January 16th. Barrington Research dropped their price objective on shares of Concentrix from $70.00 to $54.00 and set an “outperform” rating for the company in a research report on Monday. One research analyst has rated the stock with a hold rating, four have given a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat, Concentrix currently has a consensus rating of “Buy” and an average target price of $71.80.

Insider Activity

In other news, EVP Cormac J. Twomey sold 500 shares of the company’s stock in a transaction on Wednesday, January 29th. The shares were sold at an average price of $55.60, for a total value of $27,800.00. Following the completion of the transaction, the executive vice president now directly owns 41,111 shares in the company, valued at approximately $2,285,771.60. This represents a 1.20 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 3.20% of the company’s stock.

Hedge Funds Weigh In On Concentrix

Institutional investors have recently added to or reduced their stakes in the company. Steward Partners Investment Advisory LLC lifted its stake in shares of Concentrix by 81.3% in the fourth quarter. Steward Partners Investment Advisory LLC now owns 638 shares of the company’s stock worth $28,000 after acquiring an additional 286 shares in the last quarter. Venturi Wealth Management LLC increased its holdings in Concentrix by 159.6% during the 4th quarter. Venturi Wealth Management LLC now owns 797 shares of the company’s stock worth $34,000 after purchasing an additional 490 shares during the last quarter. Parkside Financial Bank & Trust raised its position in shares of Concentrix by 58.7% in the 4th quarter. Parkside Financial Bank & Trust now owns 1,201 shares of the company’s stock valued at $52,000 after purchasing an additional 444 shares in the last quarter. KBC Group NV boosted its stake in shares of Concentrix by 68.3% during the 4th quarter. KBC Group NV now owns 2,008 shares of the company’s stock valued at $87,000 after buying an additional 815 shares during the last quarter. Finally, Quarry LP grew its position in shares of Concentrix by 843.9% during the fourth quarter. Quarry LP now owns 2,539 shares of the company’s stock worth $110,000 after buying an additional 2,270 shares in the last quarter. Institutional investors and hedge funds own 90.34% of the company’s stock.

Concentrix Stock Up 31.0 %

The company has a debt-to-equity ratio of 1.17, a current ratio of 1.42 and a quick ratio of 1.42. The stock has a market capitalization of $3.85 billion, a price-to-earnings ratio of 15.92, a PEG ratio of 0.63 and a beta of 0.69. The firm’s fifty day moving average is $47.58 and its 200-day moving average is $47.73.

About Concentrix

Concentrix Corporation engages in the provision of technology-infused customer experience (CX) solutions worldwide. The company provides CX process optimization, technology innovation, front- and back-office automation, analytics, and business transformation services, across various channels of communication, such as voice, chat, email, social media, asynchronous messaging, and custom applications.