Concentrix (NASDAQ:CNXC) Stock Price Down 8.6% - Here's Why

Key Points

• Concentrix shares fell 8.6% on Friday to about $26.06, trading below recent moving averages on higher-than-normal volume after a prior close of $28.50.
• Multiple firms recently cut ratings and price targets — the consensus is a “Hold” with an average price target of $48.50 following downgrades and target reductions from Weiss, Wall Street Zen, Barrington, Baird and Canaccord.
• Fundamentals show strain: the company posted a slight EPS miss, a negative net margin (-13.35%) and a debt/equity of 1.43, yet it declared a quarterly dividend yielding 5.5% and both the CEO and CFO recently purchased shares.

Concentrix Corporation (NASDAQ:CNXC - Get Free Report)'s stock price fell 8.6% on Friday . The stock traded as low as $26.62 and last traded at $26.0580. 1,392,749 shares changed hands during trading, a decline of 8% from the average session volume of 1,512,865 shares. The stock had previously closed at $28.50.

Analysts Set New Price Targets

Several research firms have recently weighed in on CNXC. Weiss Ratings cut Concentrix from a "hold (c-)" rating to a "sell (d)" rating in a report on Thursday, January 29th. Barrington Research reduced their price target on Concentrix from $62.00 to $38.00 and set an "outperform" rating on the stock in a report on Wednesday, March 25th. Robert W. Baird reduced their price target on Concentrix from $52.00 to $40.00 and set an "outperform" rating on the stock in a report on Wednesday, March 25th. Canaccord Genuity Group reduced their price objective on shares of Concentrix from $80.00 to $55.00 and set a "buy" rating on the stock in a research note on Wednesday, March 25th. Finally, Wall Street Zen cut 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 given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $48.50.

Concentrix Price Performance

The company has a fifty day moving average of $31.89 and a 200 day moving average of $38.26. The firm has a market capitalization of $1.59 billion, a P/E ratio of -1.21, a PEG ratio of 0.35 and a beta of 0.50. The company has a debt-to-equity ratio of 1.43, a current ratio of 1.18 and a quick ratio of 1.40.

Concentrix (NASDAQ:CNXC - Get Free Report) last announced its 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). The company had revenue of $2.50 billion during the quarter, compared to the consensus estimate of $2.49 billion. Concentrix had a negative net margin of 13.35% and a positive return on equity of 17.80%. The business's revenue was up 5.4% on a year-over-year basis. During the same quarter in the previous year, the company earned $2.79 earnings per share. Sell-side analysts predict that Concentrix Corporation will post 10.11 earnings per share for the current year.

Concentrix Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, May 5th. Shareholders of record on Friday, April 24th will be given a dividend of $0.36 per share. The ex-dividend date of this dividend is Friday, April 24th. This represents a $1.44 dividend on an annualized basis and a yield of 5.5%. Concentrix's dividend payout ratio is -6.68%.

Insiders Place Their Bets

In other news, CEO Christopher A. Caldwell purchased 1,000 shares of the business's stock in a transaction on Thursday, January 29th. The shares were acquired at an average price of $37.07 per share, with a total value of $37,070.00. Following the completion of the transaction, the chief executive officer owned 362,075 shares of the company's stock, valued at $13,422,120.25. The trade was a 0.28% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Andre S. Valentine purchased 2,500 shares of the business's stock in a transaction on Thursday, April 9th. The shares were acquired at an average price of $27.95 per share, for a total transaction of $69,875.00. Following the completion of the acquisition, 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 position. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 0.90% of the company's stock.

Hedge Funds Weigh In On Concentrix

A number of institutional investors and hedge funds have recently modified their holdings of CNXC. Royal Bank of Canada boosted 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 worth $2,643,000 after purchasing an additional 4,133 shares in the last quarter. Goldman Sachs Group Inc. boosted its position in shares of Concentrix by 75.1% during 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 boosted its position in shares of Concentrix by 17.4% during 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 bought a new position in shares of Concentrix during the 1st quarter worth about $781,000. Finally, Geneos Wealth Management Inc. boosted its position in shares of Concentrix by 532.7% during 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 currently owned by institutional investors.

Concentrix Company Profile

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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