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 released on Tuesday.

According to Zacks, “Genpact is a professional services firm. Its performance is driven by growth in Global Client BPO and transformation services. The company is a dominant name in the business process outsourcing (BPO) market based on its domain expertise in business analytics, digital and consulting sectors. Additionally, strong clientele and aggressive share buyback on stable cash flows are tailwinds. Shares of the company have outperformed the industry in the last year. 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.”

Several other research analysts also recently weighed in on G. Cantor Fitzgerald reiterated a buy rating and issued a $32.00 price target on shares of Genpact in a research report on Wednesday, September 13th. Robert W. Baird reiterated a buy rating and issued a $34.00 price target on shares of Genpact in a research report on Monday, September 25th. BMO Capital Markets reiterated a hold rating on shares of Genpact in a research report on Friday, October 6th. SunTrust Banks reiterated a buy rating and issued a $34.00 price target on shares of Genpact in a research report on Monday, October 9th. Finally, Cowen reiterated a buy rating and issued a $33.00 price target on shares of Genpact in a research report on Thursday, October 12th. Three investment analysts have rated the stock with a hold rating and seven have issued a buy rating to the company’s stock. Genpact has an average rating of Buy and an average target price of $33.38.

Shares of Genpact (NYSE G) traded down $0.18 during trading on Tuesday, reaching $33.12. 920,317 shares of the company were exchanged, compared to its average volume of 939,722. The company has a market capitalization of $6,390.00, a P/E ratio of 24.00, a price-to-earnings-growth ratio of 2.06 and a beta of 0.58. Genpact has a 12 month low of $23.34 and a 12 month high of $33.75. The company has a current ratio of 1.65, a quick ratio of 1.65 and a debt-to-equity ratio of 0.77.

Genpact (NYSE:G) last issued its quarterly earnings data on Tuesday, November 7th. The business services provider reported $0.46 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.36 by $0.10. The company had revenue of $708.82 million for the quarter, compared to the consensus estimate of $685.25 million. Genpact had a net margin of 10.18% and a return on equity of 23.86%. The firm’s revenue for the quarter was up 9.3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.37 earnings per share. equities research analysts predict that Genpact will post 1.47 earnings per share for the current fiscal year.

The firm also recently declared a quarterly dividend, which was paid on Wednesday, December 20th. Shareholders of record on Friday, December 8th were given a $0.06 dividend. The ex-dividend date of this dividend was Thursday, December 7th. This represents a $0.24 annualized dividend and a yield of 0.72%. Genpact’s payout ratio is presently 17.39%.

In other news, SVP Arvinder Singh sold 22,855 shares of the stock in a transaction on Friday, December 15th. The shares were sold at an average price of $32.23, for a total value of $736,616.65. Following the completion of the sale, the senior vice president now directly owns 37,623 shares of the company’s stock, valued at $1,212,589.29. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Piyush Mehta sold 17,017 shares of the stock in a transaction on Wednesday, November 8th. The stock was sold at an average price of $31.00, for a total transaction of $527,527.00. Following the completion of the sale, the insider now directly owns 82,461 shares of the company’s stock, valued at $2,556,291. The disclosure for this sale can be found here. Insiders sold 1,675,525 shares of company stock worth $50,978,024 over the last quarter. Insiders own 1.41% of the company’s stock.

Several hedge funds and other institutional investors have recently made changes to their positions in G. Schwab Charles Investment Management Inc. increased its stake in shares of Genpact by 7.6% in the second quarter. Schwab Charles Investment Management Inc. now owns 814,958 shares of the business services provider’s stock worth $22,681,000 after purchasing an additional 57,730 shares in the last quarter. SG Americas Securities LLC grew its stake in Genpact by 27.0% during the second quarter. SG Americas Securities LLC now owns 5,642 shares of the business services provider’s stock valued at $157,000 after acquiring an additional 1,200 shares in the last quarter. Bank of New York Mellon Corp grew its stake in Genpact by 5.4% during the second quarter. Bank of New York Mellon Corp now owns 461,324 shares of the business services provider’s stock valued at $12,838,000 after acquiring an additional 23,479 shares in the last quarter. Legal & General Group Plc grew its stake in Genpact by 1.7% during the second quarter. Legal & General Group Plc now owns 108,089 shares of the business services provider’s stock valued at $3,008,000 after acquiring an additional 1,799 shares in the last quarter. Finally, Riverhead Capital Management LLC purchased a new position in Genpact during the second quarter valued at $886,000. 91.16% 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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