Concentrix (NASDAQ:CNXC) Shares Gap Down - Time to Sell?

Key Points

• Concentrix shares gapped down at the open after closing at $24.41 and opening at $23.77, with the stock recently trading around $24.55.
• Analysts have cut price targets following the company’s latest results, with consensus now at Hold and an average target price of $32.75. Recent earnings also slightly missed estimates, with EPS of $2.63 versus $2.64 expected.
• The company still pays a 6.0% dividend yield, but it carries notable leverage and weak profitability metrics, including a negative net margin and a payout ratio of -6.68%.

Shares of Concentrix Corporation (NASDAQ:CNXC - Get Free Report) gapped down before the market opened on Thursday . The stock had previously closed at $24.41, but opened at $23.77. Concentrix shares last traded at $24.5490, with a volume of 136,108 shares traded.

Wall Street Analyst Weigh In

Several equities analysts recently commented on the stock. Canaccord Genuity Group dropped their price objective on shares of Concentrix from $55.00 to $45.00 and set a "buy" rating for the company in a research note on Tuesday. Barrington Research decreased their target price on shares of Concentrix from $38.00 to $30.00 and set an "outperform" rating on the stock in a research note on Tuesday. Weiss Ratings reiterated a "sell (d)" rating on shares of Concentrix in a report on Monday, April 27th. Bank of America dropped their price target on Concentrix from $32.00 to $26.00 and set a "neutral" rating for the company in a research note on Tuesday. Finally, Robert W. Baird cut their price objective on Concentrix from $40.00 to $30.00 and set an "outperform" rating on the stock in a report on Tuesday. Three research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $32.75.

Concentrix Price Performance

The company has a 50 day moving average price of $25.57 and a 200-day moving average price of $31.85. 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 company has a market cap of $1.46 billion, a price-to-earnings ratio of -1.12, a P/E/G ratio of 0.28 and a beta of 0.47.

Concentrix (NASDAQ:CNXC - Get Free Report) last issued its quarterly earnings data on Monday, June 29th. The company reported $2.63 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.64 by ($0.01). Concentrix had a negative net margin of 13.16% and a positive return on equity of 18.93%. The business had revenue of $2.46 billion during the quarter, compared to the consensus estimate of $2.47 billion. During the same quarter last year, the business earned $2.70 EPS. The firm's quarterly revenue was up 1.9% compared to the same quarter last year. Concentrix has set its FY 2026 guidance at 10.830-11.180 EPS and its Q3 2026 guidance at 2.650-2.770 EPS. As a group, equities research analysts predict that Concentrix Corporation will post 10.42 EPS for the current fiscal year.

Concentrix Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, August 4th. Shareholders of record on Friday, July 24th will be given a $0.36 dividend. This represents a $1.44 annualized dividend and a yield of 6.0%. The ex-dividend date is Friday, July 24th. Concentrix's dividend payout ratio is -6.68%.

Insider Buying and Selling at Concentrix

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

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Huntington National Bank increased its stake in shares of Concentrix by 6,011.1% in the third quarter. Huntington National Bank now owns 550 shares of the company's stock valued at $25,000 after buying an additional 541 shares during the period. Geneos Wealth Management Inc. lifted its stake in shares of Concentrix by 532.7% in the first quarter. Geneos Wealth Management Inc. now owns 620 shares of the company's stock worth $34,000 after acquiring an additional 522 shares during the period. Larson Financial Group LLC lifted its stake in shares of Concentrix by 224.9% in the third quarter. Larson Financial Group LLC now owns 692 shares of the company's stock worth $32,000 after acquiring an additional 479 shares during the period. Allworth Financial LP boosted its holdings in Concentrix by 90.6% in the third quarter. Allworth Financial LP now owns 856 shares of the company's stock valued at $40,000 after acquiring an additional 407 shares during the last quarter. Finally, Global Retirement Partners LLC boosted its holdings in Concentrix by 1,032.5% in the fourth quarter. Global Retirement Partners LLC now owns 872 shares of the company's stock valued at $36,000 after acquiring an additional 795 shares during the last quarter. 90.34% of the stock is 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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