Concentrix (NASDAQ:CNXC) Shares Gap Down - Here's Why

Key Points

• Concentrix shares gapped down before the market opened, dropping from a previous close of $54.99 to an opening price of $43.18, with the stock last trading at $49.52.
• Several analysts have revised their ratings on Concentrix, with Bank of America lowering its target price from $65.00 to $61.00, while Canaccord Genuity restated a "buy" rating with a price objective of $80.00.
• Concentrix announced an increase in its quarterly dividend to $0.36 per share, with a scheduled payout date of November 4th, representing an annualized yield of 2.9%.

Concentrix Corporation (NASDAQ:CNXC - Get Free Report)'s stock price gapped down before the market opened on Friday . The stock had previously closed at $54.99, but opened at $43.18. Concentrix shares last traded at $49.52, with a volume of 2,178,631 shares changing hands.

Analysts Set New Price Targets

CNXC has been the topic of a number of research analyst reports. Wall Street Zen cut Concentrix from a "buy" rating to a "hold" rating in a report on Saturday, June 21st. Bank of America cut their target price on Concentrix from $65.00 to $61.00 and set a "neutral" rating on the stock in a report on Friday, June 27th. Canaccord Genuity Group restated a "buy" rating and set a $80.00 price objective on shares of Concentrix in a research note on Tuesday. Barrington Research reaffirmed an "outperform" rating and set a $62.00 target price on shares of Concentrix in a research report on Wednesday. Finally, Robert W. Baird increased their price target on shares of Concentrix from $72.00 to $75.00 and gave the company an "outperform" rating in a research report on Thursday, September 18th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Buy" and an average target price of $69.50.

Concentrix Stock Down 10.1%

The company has a market cap of $3.12 billion, a PE ratio of 13.62, a price-to-earnings-growth ratio of 0.74 and a beta of 0.53. The company has a fifty day moving average price of $52.68 and a 200 day moving average price of $52.61. The company has a debt-to-equity ratio of 1.14, a current ratio of 1.61 and a quick ratio of 1.61.

Concentrix (NASDAQ:CNXC - Get Free Report) last issued its earnings results on Thursday, June 26th. The company reported $2.70 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.76 by ($0.06). The firm had revenue of $2.42 billion during the quarter, compared to analysts' expectations of $2.38 billion. Concentrix had a return on equity of 16.31% and a net margin of 2.54%.The firm's quarterly revenue was up 1.5% compared to the same quarter last year. During the same period in the prior year, the company earned $2.69 EPS. As a group, analysts anticipate that Concentrix Corporation will post 10.11 EPS for the current year.

Concentrix Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 4th. Shareholders of record on Friday, October 24th will be given a $0.36 dividend. The ex-dividend date is Friday, October 24th. This is an increase from Concentrix's previous quarterly dividend of $0.33. This represents a $1.44 annualized dividend and a yield of 2.9%. Concentrix's dividend payout ratio is presently 36.54%.

Insider Activity at Concentrix

In related news, EVP Cormac J. Twomey sold 500 shares of the company's stock in a transaction that occurred on Wednesday, July 30th. The stock was sold at an average price of $57.91, for a total transaction of $28,955.00. Following the completion of the transaction, the executive vice president owned 37,130 shares in the company, valued at $2,150,198.30. This represents a 1.33% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 3.20% of the stock is currently owned by corporate insiders.

Institutional Trading of Concentrix

Hedge funds have recently modified their holdings of the business. Envestnet Asset Management Inc. boosted its holdings in shares of Concentrix by 7.9% during the 1st quarter. Envestnet Asset Management Inc. now owns 165,581 shares of the company's stock valued at $9,213,000 after buying an additional 12,162 shares in the last quarter. GAMMA Investing LLC boosted its holdings in shares of Concentrix by 761.3% during the 1st quarter. GAMMA Investing LLC now owns 2,446 shares of the company's stock valued at $136,000 after buying an additional 2,162 shares in the last quarter. Fifth Third Bancorp grew its stake in shares of Concentrix by 36.5% in the first quarter. Fifth Third Bancorp now owns 2,051 shares of the company's stock worth $114,000 after acquiring an additional 548 shares during the last quarter. Janney Montgomery Scott LLC purchased a new stake in shares of Concentrix in the first quarter worth $495,000. Finally, Wealth Enhancement Advisory Services LLC grew its stake in shares of Concentrix by 687.7% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 50,270 shares of the company's stock worth $2,797,000 after acquiring an additional 43,888 shares during the last quarter. Institutional investors own 90.34% of the company's stock.

Concentrix Company Profile

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.

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