Genpact (G) Cut to “Hold” at Zacks Investment Research

Zacks Investment Research lowered shares of Genpact (NYSE:G) from a buy rating to a hold rating in a research report report published on Thursday morning, Zacks.com reports.

According to Zacks, “Genpact delivered impressive first-quarter 2019 results, with earnings and revenues beating the Zacks Consensus Estimate. The company continues to enjoy a competitive position in the BPO services market based on domain expertise in business analytics, digital and consulting. Acquisitions have helped Genpact expand its product portfolio as well as gain new domain expertise. Strong clientele across the world is another growth catalyst. The company’s efforts to reward its shareholders through share buybacks are appreciable as well. However, the company continues to face significant client concentration in terms of geographic location. Frequent acquisitions have also negatively impacted its balance sheet. Seasonality causes considerable fluctuations in revenues and makes profit forecasting difficult. Shares of Genpact have outperformed the industry year to date.”

A number of other analysts have also commented on the company. ValuEngine raised Genpact from a hold rating to a buy rating in a research note on Friday, March 29th. Wells Fargo & Co raised Genpact from a market perform rating to an outperform rating and set a $33.25 price target on the stock in a research note on Friday, March 8th. Cantor Fitzgerald reissued a buy rating and set a $36.00 price target on shares of Genpact in a research note on Sunday, March 3rd. Royal Bank of Canada lowered Genpact from an outperform rating to a sector perform rating and set a $33.50 price target on the stock. in a research note on Tuesday, February 26th. Finally, Bank of America raised Genpact from an underperform rating to a buy rating and set a $36.00 price target on the stock in a research note on Wednesday, February 6th. Three equities research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. The stock has a consensus rating of Buy and an average target price of $33.97.

Genpact stock opened at $36.18 on Thursday. Genpact has a 12-month low of $25.48 and a 12-month high of $37.70. The company has a current ratio of 1.39, a quick ratio of 1.39 and a debt-to-equity ratio of 0.69. The stock has a market capitalization of $6.86 billion, a price-to-earnings ratio of 22.61, a price-to-earnings-growth ratio of 1.97 and a beta of 0.87.

Genpact (NYSE:G) last released its earnings results on Thursday, May 2nd. The business services provider reported $0.43 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.36 by $0.07. Genpact had a return on equity of 23.03% and a net margin of 8.91%. The firm had revenue of $809.21 million for the quarter, compared to analysts’ expectations of $764.50 million. During the same quarter in the previous year, the business posted $0.39 earnings per share. The business’s revenue for the quarter was up 17.5% on a year-over-year basis. As a group, equities analysts anticipate that Genpact will post 1.72 earnings per share for the current fiscal year.

The business also recently declared a quarterly dividend, which will be paid on Friday, June 21st. Investors of record on Wednesday, June 12th will be issued a dividend of $0.085 per share. The ex-dividend date is Tuesday, June 11th. This represents a $0.34 annualized dividend and a yield of 0.94%. Genpact’s dividend payout ratio (DPR) is currently 21.25%.

In other Genpact news, insider Private Ltd Gic sold 1,499,806 shares of the business’s stock in a transaction on Friday, February 15th. The stock was sold at an average price of $32.22, for a total value of $48,323,749.32. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Edward J. Fitzpatrick sold 50,213 shares of the business’s stock in a transaction on Tuesday, February 19th. The stock was sold at an average price of $33.03, for a total value of $1,658,535.39. Following the completion of the transaction, the chief financial officer now directly owns 137,923 shares in the company, valued at approximately $4,555,596.69. The disclosure for this sale can be found here. Insiders have sold 1,889,065 shares of company stock valued at $61,929,338 in the last quarter. 1.86% of the stock is currently owned by corporate insiders.

A number of hedge funds have recently bought and sold shares of the business. Two Sigma Investments LP lifted its holdings in Genpact by 87.2% during the 4th quarter. Two Sigma Investments LP now owns 550,574 shares of the business services provider’s stock worth $14,860,000 after purchasing an additional 256,433 shares in the last quarter. JLB & Associates Inc. bought a new position in shares of Genpact during the 1st quarter valued at about $242,000. Tygh Capital Management Inc. increased its position in shares of Genpact by 7.0% during the 1st quarter. Tygh Capital Management Inc. now owns 210,494 shares of the business services provider’s stock valued at $7,405,000 after purchasing an additional 13,787 shares during the last quarter. Westpac Banking Corp bought a new position in shares of Genpact during the 4th quarter valued at about $3,989,000. Finally, Fox Run Management L.L.C. increased its position in shares of Genpact by 100.2% during the 4th quarter. Fox Run Management L.L.C. now owns 29,480 shares of the business services provider’s stock valued at $796,000 after purchasing an additional 14,755 shares during the last quarter. 95.84% of the stock is currently owned by institutional investors and hedge funds.

About Genpact

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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