Vulcan Value Partners LLC Decreases Stake in Genpact Limited $G

Key Points

• Vulcan Value Partners cut its Genpact stake by 26.6% in the second quarter, selling 188,726 shares and retaining 521,587 shares worth about $14.3 million. Institutional investors and hedge funds collectively own 96.03% of Genpact.
• Genpact reported quarterly revenue of $1.34 billion and EPS of $1.00, while maintaining a quarterly dividend of $0.1875 per share, or $0.75 annualized, yielding approximately 2.1%.
• Analysts largely remain neutral: Genpact has a consensus “Hold” rating and an average price target of $39.33, compared with a recent share price of $35.35.

Vulcan Value Partners LLC cut its stake in shares of Genpact Limited (NYSE:G - Free Report) by 26.6% during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 521,587 shares of the business services provider's stock after selling 188,726 shares during the quarter. Genpact comprises approximately 0.4% of Vulcan Value Partners LLC's investment portfolio, making the stock its 28th biggest holding. Vulcan Value Partners LLC owned 0.31% of Genpact worth $14,344,000 at the end of the most recent reporting period.

Other hedge funds have also modified their holdings of the company. Nalanda India Equity Fund Ltd raised its stake in shares of Genpact by 8.0% in the fourth quarter. Nalanda India Equity Fund Ltd now owns 13,702,500 shares of the business services provider's stock worth $641,003,000 after purchasing an additional 1,015,556 shares during the last quarter. AQR Capital Management LLC raised its position in Genpact by 90.9% during the 4th quarter. AQR Capital Management LLC now owns 6,575,115 shares of the business services provider's stock worth $307,584,000 after buying an additional 3,131,643 shares during the last quarter. Dimensional Fund Advisors LP lifted its stake in Genpact by 12.0% during the 1st quarter. Dimensional Fund Advisors LP now owns 5,609,641 shares of the business services provider's stock valued at $208,965,000 after acquiring an additional 598,877 shares during the period. California State Teachers Retirement System lifted its stake in Genpact by 2,558.7% during the 2nd quarter. California State Teachers Retirement System now owns 5,047,048 shares of the business services provider's stock valued at $138,794,000 after acquiring an additional 4,857,216 shares during the period. Finally, FIL Ltd boosted its holdings in shares of Genpact by 114.4% in the 4th quarter. FIL Ltd now owns 4,802,854 shares of the business services provider's stock valued at $224,678,000 after acquiring an additional 2,562,484 shares during the last quarter. 96.03% of the stock is owned by institutional investors and hedge funds.

Genpact Stock Performance

G stock traded down $1.97 during midday trading on Tuesday, hitting $35.35. 2,829,911 shares of the stock traded hands, compared to its average volume of 2,516,732. Genpact Limited has a 1-year low of $26.85 and a 1-year high of $48.64. The company has a debt-to-equity ratio of 0.44, a current ratio of 2.00 and a quick ratio of 2.00. The stock's fifty day simple moving average is $33.58 and its 200-day simple moving average is $34.37. The firm has a market cap of $5.94 billion, a P/E ratio of 10.49, a PEG ratio of 0.99 and a beta of 0.58.

Genpact (NYSE:G - Get Free Report) last posted its earnings results on Tuesday, June 30th. The business services provider reported $1.00 earnings per share (EPS) for the quarter. Genpact had a net margin of 11.04% and a return on equity of 23.34%. The business had revenue of $1.34 billion for the quarter. On average, analysts expect that Genpact Limited will post 3.66 earnings per share for the current year.

Genpact Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Investors of record on Thursday, September 10th will be issued a $0.1875 dividend. This represents a $0.75 annualized dividend and a yield of 2.1%. The ex-dividend date of this dividend is Thursday, September 10th. Genpact's payout ratio is presently 22.26%.

Analysts Set New Price Targets

Several research analysts recently issued reports on the stock. Deutsche Bank Aktiengesellschaft set a $31.00 target price on shares of Genpact in a report on Friday, July 10th. Citigroup increased their price target on Genpact from $32.00 to $36.00 and gave the stock a "neutral" rating in a research report on Friday, August 7th. BMO Capital Markets reissued a "market perform" rating and issued a $40.00 price objective on shares of Genpact in a report on Friday, August 7th. Mizuho lowered their target price on Genpact from $49.00 to $39.00 and set a "neutral" rating on the stock in a research note on Monday, May 11th. Finally, JPMorgan Chase & Co. raised their target price on Genpact from $40.00 to $45.00 and gave the stock a "neutral" rating in a report on Friday, August 7th. Two equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat, Genpact presently has a consensus rating of "Hold" and an average target price of $39.33.

Insiders Place Their Bets

In other Genpact news, SVP Anil Nanduru sold 6,191 shares of the stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $37.03, for a total transaction of $229,252.73. Following the transaction, the senior vice president directly owned 70,253 shares of the company's stock, valued at $2,601,468.59. This trade represents a 8.10% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 1.58% of the company's stock.

Genpact Profile

Genpact is a global professional services firm specializing in digitally powered business process management and services. The company partners with clients across industries to design, transform and run key operations, leveraging data analytics, artificial intelligence, automation and domain expertise. Its offerings span finance and accounting, supply chain management, procurement, customer experience, risk and compliance, and other critical business functions.

Founded in 1997 as the business process outsourcing arm of General Electric and originally known as GE Capital International Services, the company rebranded as Genpact in 2005 and completed its initial public offering on the New York Stock Exchange in 2007 under the ticker symbol “G.” Over time, Genpact has expanded beyond traditional outsourcing to focus on digital transformation and innovation, helping organizations accelerate growth and improve operational efficiency.

Headquartered in New York City, Genpact serves clients in more than 30 countries across North America, Latin America, Europe and Asia Pacific.

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