Concentrix (NASDAQ:CNXC) Reaches New 52-Week Low - Should You Sell?

Key Points

• Concentrix hit a new 52-week low, trading as low as $22.40 after closing previously at $23.24, underscoring continued weakness in the stock.
• Analyst sentiment has turned cautious: several firms cut price targets, and the stock now has an average Hold rating with an average target price of $48.50, though opinions remain mixed.
• The company’s latest results showed mixed fundamentals, with EPS missing estimates and net margin remaining negative, even as revenue topped expectations and dividend yield stood at 6.3%.

Concentrix Corporation (NASDAQ:CNXC - Get Free Report) reached a new 52-week low on Tuesday . The company traded as low as $22.40 and last traded at $22.9690, with a volume of 354479 shares. The stock had previously closed at $23.24.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on CNXC shares. Canaccord Genuity Group decreased their target price on Concentrix from $80.00 to $55.00 and set a "buy" rating on the stock in a research report on Wednesday, March 25th. Robert W. Baird decreased their price objective on shares of Concentrix from $52.00 to $40.00 and set an "outperform" rating on the stock in a report on Wednesday, March 25th. Weiss Ratings reiterated a "sell (d)" rating on shares of Concentrix in a research report on Monday, April 27th. Barrington Research reduced their price target on shares of Concentrix from $62.00 to $38.00 and set an "outperform" rating for the company in a research report on Wednesday, March 25th. Finally, Wall Street Zen lowered shares of Concentrix from a "buy" rating to a "hold" rating in a research note on Saturday, March 28th. Three research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock has an average rating of "Hold" and an average target price of $48.50.

Concentrix Stock Performance

The company has a quick ratio of 1.18, a current ratio of 1.18 and a debt-to-equity ratio of 1.43. The stock has a 50-day moving average of $28.75 and a 200 day moving average of $35.08. The stock has a market cap of $1.40 billion, a PE ratio of -1.06, a P/E/G ratio of 0.30 and a beta of 0.37.

Concentrix (NASDAQ:CNXC - Get Free Report) last posted its quarterly earnings results on Tuesday, March 24th. The company reported $2.61 EPS for the quarter, missing the consensus estimate of $2.65 by ($0.04). Concentrix had a positive return on equity of 17.80% and a negative net margin of 13.35%.The company had revenue of $2.50 billion for the quarter, compared to analysts' expectations of $2.49 billion. During the same quarter in the prior year, the firm earned $2.79 EPS. The firm's revenue was up 5.4% on a year-over-year basis. Equities analysts predict that Concentrix Corporation will post 10.42 EPS for the current fiscal year.

Concentrix Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, May 5th. Stockholders of record on Friday, April 24th were given a dividend of $0.36 per share. This represents a $1.44 annualized dividend and a dividend yield of 6.3%. The ex-dividend date of this dividend was Friday, April 24th. Concentrix's payout ratio is presently -6.68%.

Insider Activity at Concentrix

In other Concentrix news, CFO Andre S. Valentine acquired 2,500 shares of the business's stock in a transaction that occurred on Thursday, April 9th. The stock was purchased at an average cost of $27.95 per share, with a total value of $69,875.00. Following the transaction, the chief financial officer owned 89,066 shares of the company's stock, valued at $2,489,394.70. This trade represents a 2.89% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, major shareholder Bruxelles Lambert Groupe sold 6,000,000 shares of the business's stock in a transaction dated Wednesday, April 29th. The shares were sold at an average price of $22.25, for a total transaction of $133,500,000.00. Following the completion of the sale, the insider owned 2,773,667 shares in the company, valued at approximately $61,714,090.75. This trade represents a 68.39% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.90% of the company's stock.

Hedge Funds Weigh In On Concentrix

Several large investors have recently made changes to their positions in CNXC. AQR Capital Management LLC boosted its position in shares of Concentrix by 1.8% during the third quarter. AQR Capital Management LLC now owns 4,380,821 shares of the company's stock worth $202,175,000 after buying an additional 75,352 shares during the period. Dimensional Fund Advisors LP lifted its stake in Concentrix by 18.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 2,951,378 shares of the company's stock worth $80,746,000 after acquiring an additional 460,108 shares in the last quarter. Pzena Investment Management LLC boosted its holdings in Concentrix by 0.5% during the 1st quarter. Pzena Investment Management LLC now owns 2,943,212 shares of the company's stock valued at $80,526,000 after acquiring an additional 16,016 shares during the period. State Street Corp grew its position in Concentrix by 8.7% in the 2nd quarter. State Street Corp now owns 1,622,854 shares of the company's stock valued at $85,776,000 after acquiring an additional 130,529 shares in the last quarter. Finally, Invenomic Capital Management LP increased its stake in Concentrix by 6.3% during the fourth quarter. Invenomic Capital Management LP now owns 874,241 shares of the company's stock worth $36,351,000 after purchasing an additional 51,896 shares during the period. 90.34% of the stock is currently owned by institutional investors and hedge funds.

About Concentrix

Concentrix Inc NASDAQ: CNXC is a global business services company specializing in customer engagement solutions and technology‐driven business process outsourcing. The firm’s offerings encompass customer care delivered across voice and digital channels, back‐office processing, analytics and consulting, and automated workflow management. By integrating proprietary platforms, strategic partnerships and advanced automation, Concentrix helps clients enhance customer experiences and streamline operations.

Its capabilities extend to digital marketing and technology implementation, leveraging artificial intelligence, machine learning and data analytics to optimize customer journeys.

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