Concentrix (NASDAQ:CNXC) Shares Up 8% - Still a Buy?

Key Points

• Concentrix shares rose 8% to roughly $29.73 in mid-day trading, although trading volume was 68% below the average daily level.
• Analyst sentiment remains mixed: the consensus rating is “Hold” with an average price target of $32.75, while several firms recently lowered their targets.
• The company narrowly missed quarterly earnings and revenue estimates, but revenue still increased 1.9% year over year. Concentrix also pays a quarterly dividend of $0.36 per share, representing a 4.8% annualized yield.

Concentrix Corporation (NASDAQ:CNXC - Get Free Report) shares were up 8% during mid-day trading on Tuesday . The stock traded as high as $29.22 and last traded at $29.7320. Approximately 516,172 shares were traded during mid-day trading, a decline of 68% from the average daily volume of 1,591,884 shares. The stock had previously closed at $27.53.

Analysts Set New Price Targets

CNXC has been the subject of a number of recent research reports. Barrington Research lowered their target price on Concentrix from $38.00 to $30.00 and set an "outperform" rating for the company in a research note on Tuesday, June 30th. Weiss Ratings reissued a "sell (d)" rating on shares of Concentrix in a research report on Friday, July 24th. Bank of America decreased their target price on Concentrix from $32.00 to $26.00 and set a "neutral" rating for the company in a research note on Tuesday, June 30th. Robert W. Baird cut their price objective on shares of Concentrix from $40.00 to $30.00 and set an "outperform" rating on the stock in a research report on Tuesday, June 30th. Finally, Canaccord Genuity Group decreased their price target on Concentrix from $55.00 to $45.00 and set a "buy" rating for the company in a research note on Tuesday, June 30th. Three equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $32.75.

Concentrix Stock Performance

The firm's 50 day simple moving average is $26.59 and its 200-day simple moving average is $26.77. The company has a debt-to-equity ratio of 1.46, a quick ratio of 1.18 and a current ratio of 1.18. The company has a market capitalization of $1.85 billion, a price-to-earnings ratio of -1.41, a P/E/G ratio of 0.51 and a beta of 0.47.

Concentrix (NASDAQ:CNXC - Get Free Report) last issued its earnings results on Monday, June 29th. The company reported $2.63 EPS for the quarter, missing the consensus estimate of $2.64 by ($0.01). Concentrix had a positive return on equity of 19.82% and a negative net margin of 13.16%.The business had revenue of $2.46 billion during the quarter, compared to analyst estimates of $2.47 billion. During the same period last year, the business earned $2.70 EPS. The business's quarterly revenue was up 1.9% on a year-over-year basis. Concentrix has set its FY 2026 guidance at 10.830-11.180 EPS and its Q3 2026 guidance at 2.650-2.770 EPS. Analysts expect that Concentrix Corporation will post 9.67 EPS for the current year.

Concentrix Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, August 4th. Investors of record on Friday, July 24th were issued a dividend of $0.36 per share. This represents a $1.44 annualized dividend and a dividend yield of 4.8%. The ex-dividend date was Friday, July 24th. Concentrix's dividend payout ratio (DPR) is currently -6.75%.

Hedge Funds Weigh In On Concentrix

A number of hedge funds have recently added to or reduced their stakes in CNXC. Engineers Gate Manager LP bought a new position in shares of Concentrix in the second quarter worth about $228,000. Arizona State Retirement System grew its holdings in Concentrix by 14.8% in the 2nd quarter. Arizona State Retirement System now owns 11,783 shares of the company's stock valued at $264,000 after buying an additional 1,523 shares during the last quarter. Nykredit A S bought a new position in Concentrix in the 2nd quarter worth approximately $29,000. Corient Private Wealth LP lifted its holdings in shares of Concentrix by 321.6% during the second quarter. Corient Private Wealth LP now owns 121,597 shares of the company's stock worth $2,724,000 after buying an additional 92,752 shares during the last quarter. Finally, Amundi lifted its holdings in shares of Concentrix by 46.2% during the second quarter. Amundi now owns 33,437 shares of the company's stock worth $749,000 after buying an additional 10,572 shares during the last quarter. Institutional investors and hedge funds own 90.34% of the company's stock.

About Concentrix

Concentrix Corporation is a global technology and services company that helps organizations manage customer experience, business operations and digital transformation. Its offerings include customer care, technical support, sales and marketing services, back-office support, analytics, artificial intelligence and automation solutions.

The company serves clients across industries such as technology and consumer electronics, retail, banking and financial services, healthcare, communications and media, travel, and automotive.

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