Concentrix (NASDAQ:CNXC) Shares Gap Down on Disappointing Earnings

Concentrix Corporation (NASDAQ:CNXC - Get Free Report)'s stock price gapped down prior to trading on Friday following a dissappointing earnings announcement. The stock had previously closed at $55.13, but opened at $51.77. Concentrix shares last traded at $55.90, with a volume of 521,544 shares changing hands.

The company reported $2.70 EPS for the quarter, missing the consensus estimate of $2.76 by ($0.06). The company had revenue of $2.42 billion for the quarter, compared to analyst estimates of $2.38 billion. Concentrix had a net margin of 2.54% and a return on equity of 16.31%. The business's revenue for the quarter was up 1.5% on a year-over-year basis. During the same period last year, the company posted $2.69 earnings per share.

Concentrix Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, August 5th. Stockholders of record on Friday, July 25th will be given a $0.3328 dividend. This represents a $1.33 annualized dividend and a dividend yield of 2.52%. The ex-dividend date of this dividend is Friday, July 25th. Concentrix's payout ratio is presently 33.33%.

Analyst Upgrades and Downgrades

A number of research analysts have commented on CNXC shares. Barrington Research reaffirmed an "outperform" rating and issued a $54.00 price objective on shares of Concentrix in a report on Tuesday, June 24th. Robert W. Baird lifted their price objective on shares of Concentrix from $62.00 to $72.00 and gave the stock an "outperform" rating in a research note on Thursday. Wall Street Zen cut shares of Concentrix from a "buy" rating to a "hold" rating in a report on Saturday, June 21st. Bank of America cut their price target on Concentrix from $65.00 to $61.00 and set a "neutral" rating for the company in a research note on Friday. Finally, Canaccord Genuity Group reissued a "buy" rating and issued a $80.00 target price on shares of Concentrix in a report on Monday. Two equities research analysts have rated the stock with a hold rating, three have given a buy rating and one has issued a strong buy rating to the company's stock. According to data from MarketBeat, Concentrix presently has a consensus rating of "Moderate Buy" and a consensus target price of $66.75.

Insider Activity

In related news, Director Olivier Duha sold 29,444 shares of the stock in a transaction that occurred on Tuesday, April 15th. The shares were sold at an average price of $48.52, for a total value of $1,428,622.88. Following the completion of the transaction, the director owned 1,155,862 shares of the company's stock, valued at $56,082,424.24. This represents a 2.48% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Cormac J. Twomey sold 500 shares of the business's stock in a transaction on Friday, May 30th. The stock was sold at an average price of $57.06, for a total transaction of $28,530.00. Following the sale, the executive vice president directly owned 38,130 shares in the company, valued at approximately $2,175,697.80. The trade was a 1.29% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 30,444 shares of company stock worth $1,482,503. Corporate insiders own 3.20% of the company's stock.

Hedge Funds Weigh In On Concentrix

A number of institutional investors and hedge funds have recently bought and sold shares of CNXC. Vanguard Group Inc. raised its holdings in Concentrix by 2.1% in the 1st quarter. Vanguard Group Inc. now owns 5,242,763 shares of the company's stock valued at $291,707,000 after buying an additional 106,217 shares during the last quarter. AQR Capital Management LLC increased its position in Concentrix by 850.1% in the 1st quarter. AQR Capital Management LLC now owns 3,429,913 shares of the company's stock valued at $190,840,000 after acquiring an additional 3,068,916 shares during the period. Fuller & Thaler Asset Management Inc. raised its stake in shares of Concentrix by 38.1% during the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 2,981,227 shares of the company's stock valued at $128,998,000 after acquiring an additional 823,228 shares during the last quarter. Pzena Investment Management LLC lifted its holdings in shares of Concentrix by 60.0% during the fourth quarter. Pzena Investment Management LLC now owns 2,349,599 shares of the company's stock worth $101,667,000 after purchasing an additional 880,960 shares during the period. Finally, Copeland Capital Management LLC lifted its holdings in shares of Concentrix by 3.0% during the first quarter. Copeland Capital Management LLC now owns 1,373,432 shares of the company's stock worth $76,418,000 after purchasing an additional 40,226 shares during the period. Institutional investors and hedge funds own 90.34% of the company's stock.

Concentrix Trading Up 2.2%

The company has a market cap of $3.38 billion, a P/E ratio of 14.52, a PEG ratio of 0.67 and a beta of 0.56. The firm's 50 day moving average is $53.86 and its two-hundred day moving average is $49.54. The company has a quick ratio of 1.65, a current ratio of 1.61 and a debt-to-equity ratio of 1.14.

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.