Concentrix (NASDAQ:CNXC) Shares Down 8.6% - Here's What Happened

Key Points

• Concentrix shares plunged about 8.6% mid-day to roughly $26.46 (from $28.95) on light volume of ~292,568 shares, about an 80% drop from average session volume.
• Multiple analysts cut price targets and adjusted ratings (e.g., Barrington to $38, Canaccord to $55, Baird to $40), leaving an average "Hold" rating and an average target price of $48.50.
• The company slightly missed quarterly EPS ($2.61 vs. $2.65), posted a negative net margin despite 5.4% revenue growth, announced a $0.36 quarterly dividend (5.4% yield, ex-div April 24), and experienced both insider purchases and increased institutional buying.

Concentrix Corporation (NASDAQ:CNXC - Get Free Report) traded down 8.6% during mid-day trading on Thursday . The company traded as low as $26.33 and last traded at $26.4570. 292,568 shares traded hands during trading, a decline of 80% from the average session volume of 1,486,732 shares. The stock had previously closed at $28.95.

Analysts Set New Price Targets

A number of research firms have issued reports on CNXC. Barrington Research cut their price target on Concentrix from $62.00 to $38.00 and set an "outperform" rating for the company in a research note on Wednesday, March 25th. Weiss Ratings downgraded Concentrix from a "hold (c-)" rating to a "sell (d)" rating in a research note on Thursday, January 29th. Wall Street Zen downgraded Concentrix from a "buy" rating to a "hold" rating in a research note on Saturday, March 28th. Canaccord Genuity Group cut their price target on Concentrix from $80.00 to $55.00 and set a "buy" rating for the company in a research note on Wednesday, March 25th. Finally, Robert W. Baird cut their price target on Concentrix from $52.00 to $40.00 and set an "outperform" rating for the company in a research note on Wednesday, March 25th. Three investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Concentrix currently has an average rating of "Hold" and an average target price of $48.50.

Concentrix Trading Down 7.7%

The stock has a 50 day simple moving average of $30.21 and a 200-day simple moving average of $36.79. The firm has a market capitalization of $1.63 billion, a P/E ratio of -1.24, a P/E/G ratio of 0.37 and a beta of 0.50. The company has a current ratio of 1.18, a quick ratio of 1.18 and a debt-to-equity ratio of 1.43.

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

Concentrix Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, May 5th. Stockholders of record on Friday, April 24th will be given a dividend of $0.36 per share. This represents a $1.44 dividend on an annualized basis and a dividend yield of 5.4%. The ex-dividend date of this dividend is Friday, April 24th. Concentrix's payout ratio is presently -6.68%.

Insider Transactions at Concentrix

In related news, CFO Andre S. Valentine acquired 2,500 shares of the stock in a transaction dated Thursday, April 9th. The shares were 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 directly owned 89,066 shares in the company, valued at approximately $2,489,394.70. This represents a 2.89% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Christopher A. Caldwell acquired 1,000 shares of the stock in a transaction dated Thursday, January 29th. The shares were bought at an average cost of $37.07 per share, for a total transaction of $37,070.00. Following the completion of the transaction, the chief executive officer owned 362,075 shares in the company, valued at approximately $13,422,120.25. This represents a 0.28% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 0.90% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in CNXC. Royal Bank of Canada lifted its position in shares of Concentrix by 9.5% during the 1st quarter. Royal Bank of Canada now owns 47,501 shares of the company's stock valued at $2,643,000 after buying an additional 4,133 shares in the last quarter. Goldman Sachs Group Inc. lifted its holdings in Concentrix by 75.1% in the 1st quarter. Goldman Sachs Group Inc. now owns 423,287 shares of the company's stock worth $23,552,000 after purchasing an additional 181,546 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in Concentrix by 17.4% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 146,515 shares of the company's stock worth $8,152,000 after purchasing an additional 21,746 shares in the last quarter. Focus Partners Wealth purchased a new position in Concentrix in the 1st quarter worth approximately $781,000. Finally, Geneos Wealth Management Inc. lifted its holdings in Concentrix by 532.7% in the 1st quarter. Geneos Wealth Management Inc. now owns 620 shares of the company's stock worth $34,000 after purchasing an additional 522 shares in the last quarter. 90.34% of the stock is owned by hedge funds and other institutional investors.

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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