Genpact (NYSE:G) Reaches New 12-Month Low - Should You Sell?

Key Points

• Shares hit a new 52-week low, trading as low as $33.12 and last at $34.08, with a market capitalization of about $5.79 billion.
• Analysts have trimmed price targets and ratings recently—consensus is a "Hold" with an average price target of $46.57 despite a range of opinions including one Strong Buy.
• Fundamentals show a modest beat in the latest quarter (EPS $0.97 vs. $0.93, revenue $1.32B, +5.6% YoY) and a quarterly dividend of $0.1875 (≈2.2% yield) with a 23.96% payout ratio.

Shares of Genpact Limited (NYSE:G - Get Free Report) reached a new 52-week low on Wednesday . The company traded as low as $33.12 and last traded at $34.08, with a volume of 2524911 shares traded. The stock had previously closed at $34.14.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the stock. Needham & Company LLC decreased their price target on shares of Genpact from $53.00 to $50.00 and set a "buy" rating for the company in a research report on Friday, February 6th. Mizuho decreased their price target on shares of Genpact from $51.00 to $49.00 and set a "neutral" rating for the company in a research report on Tuesday, February 10th. Wall Street Zen downgraded shares of Genpact from a "buy" rating to a "hold" rating in a research report on Saturday, March 14th. Susquehanna decreased their price target on shares of Genpact from $42.00 to $37.00 and set a "neutral" rating for the company in a research report on Tuesday. Finally, Citigroup raised shares of Genpact from a "hold" rating to a "strong-buy" rating in a research report on Friday, February 13th. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and six have given a Hold rating to the company. According to MarketBeat, the company presently has an average rating of "Hold" and an average price target of $46.57.

Genpact Price Performance

The company has a 50 day moving average of $37.42 and a 200-day moving average of $41.42. The stock has a market capitalization of $5.79 billion, a P/E ratio of 10.89, a PEG ratio of 1.00 and a beta of 0.61. The company has a quick ratio of 1.66, a current ratio of 1.66 and a debt-to-equity ratio of 0.46.

Genpact (NYSE:G - Get Free Report) last announced its quarterly earnings data on Friday, February 6th. The business services provider reported $0.97 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.93 by $0.04. Genpact had a return on equity of 22.02% and a net margin of 10.88%.The firm had revenue of $1.32 billion for the quarter, compared to analysts' expectations of $1.31 billion. During the same period last year, the business posted $0.91 earnings per share. The firm's revenue for the quarter was up 5.6% on a year-over-year basis. Sell-side analysts predict that Genpact Limited will post 3.6 EPS for the current year.

Genpact Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 25th. Investors of record on Wednesday, June 10th will be paid a dividend of $0.1875 per share. The ex-dividend date is Wednesday, June 10th. This represents a $0.75 annualized dividend and a yield of 2.2%. Genpact's dividend payout ratio (DPR) is 23.96%.

Insider Transactions at Genpact

In related news, CEO Balkrishan Kalra sold 2,800 shares of the firm's stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $40.77, for a total transaction of $114,156.00. Following the transaction, the chief executive officer directly owned 525,007 shares in the company, valued at $21,404,535.39. This trade represents a 0.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 1.58% of the stock is owned by company insiders.

Institutional Investors Weigh In On Genpact

Hedge funds have recently added to or reduced their stakes in the stock. Osbon Capital Management LLC bought a new stake in shares of Genpact during the fourth quarter valued at about $25,000. V Square Quantitative Management LLC bought a new stake in shares of Genpact during the fourth quarter valued at about $30,000. Quent Capital LLC bought a new stake in shares of Genpact during the third quarter valued at about $27,000. Westside Investment Management Inc. raised its stake in shares of Genpact by 193.5% during the third quarter. Westside Investment Management Inc. now owns 678 shares of the business services provider's stock valued at $28,000 after purchasing an additional 447 shares in the last quarter. Finally, iSAM Funds UK Ltd bought a new stake in shares of Genpact during the third quarter valued at about $29,000. 96.03% of the stock is currently owned by institutional investors.

Genpact Company 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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