Concentrix (NASDAQ:CNXC) Stock Jumps 4.9% - Here's What Happened

Key Points

• Concentrix shares rose 4.9% to about $26.71 in mid-day trading, although volume was down 96% from the stock’s average daily volume.
• Analyst sentiment remains mixed, with three Buy, two Hold and one Sell rating; the consensus rating is Hold with an average price target of $33.50.
• The company beat quarterly EPS estimates ($2.92 versus $2.71) but revenue fell 1.2% year over year to $2.45 billion. Concentrix also raised its quarterly dividend to $0.37 per share, implying a 5.5% annualized yield.

Concentrix Corporation (NASDAQ:CNXC - Get Free Report)'s share price shot up 4.9% during mid-day trading on Tuesday. The company traded as high as $26.90 and last traded at $26.7090. 60,637 shares changed hands during mid-day trading, a decline of 96% from the average daily volume of 1,643,716 shares. The stock had previously closed at $25.47.

Wall Street Analyst Weigh In

Several brokerages recently commented on CNXC. Zacks Research raised shares of Concentrix from a "strong sell" rating to a "hold" rating in a report on Monday, August 31st. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Concentrix in a report on Friday, July 24th. Bank of America reaffirmed a "neutral" rating and set a $29.00 price objective on shares of Concentrix in a report on Thursday, October 1st. Canaccord Genuity Group reiterated a "buy" rating and issued a $45.00 target price on shares of Concentrix in a research report on Wednesday, September 30th. Finally, Barrington Research cut their target price on shares of Concentrix from $38.00 to $30.00 and set an "outperform" 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 given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, Concentrix currently has an average rating of "Hold" and an average price target of $33.50.

Concentrix Stock Performance

The firm has a market cap of $1.64 billion, a PE ratio of -0.70, a P/E/G ratio of 0.49 and a beta of 0.52. The firm has a 50-day moving average price of $27.28 and a two-hundred day moving average price of $26.18. The company has a quick ratio of 1.23, a current ratio of 1.23 and a debt-to-equity ratio of 2.22.

Concentrix (NASDAQ:CNXC - Get Free Report) last issued its quarterly earnings results on Tuesday, September 29th. The company reported $2.92 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.71 by $0.21. Concentrix had a positive return on equity of 25.00% and a negative net margin of 23.99%. The firm had revenue of $2.45 billion for the quarter, compared to analyst estimates of $2.48 billion. During the same period in the previous year, the company posted $2.78 earnings per share. The business's revenue was down 1.2% on a year-over-year basis. Concentrix has set its FY 2026 guidance at 10.970-11.090 EPS and its Q4 2026 guidance at 2.860-2.980 EPS. Research analysts forecast that Concentrix Corporation will post 9.77 EPS for the current fiscal year.

Concentrix Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, November 3rd. Stockholders of record on Friday, October 23rd will be issued a dividend of $0.37 per share. The ex-dividend date of this dividend is Friday, October 23rd. This is a positive change from Concentrix's previous quarterly dividend of $0.36. This represents a $1.48 dividend on an annualized basis and a dividend yield of 5.5%. Concentrix's payout ratio is currently -3.70%.

Institutional Investors Weigh In On Concentrix

A number of hedge funds have recently modified their holdings of CNXC. GAMMA Investing LLC raised its holdings in shares of Concentrix by 9.8% during the 3rd quarter. GAMMA Investing LLC now owns 4,556 shares of the company's stock worth $114,000 after acquiring an additional 405 shares during the period. Handelsbanken Fonder AB boosted its position in shares of Concentrix by 5.7% during the 2nd quarter. Handelsbanken Fonder AB now owns 11,200 shares of the company's stock valued at $251,000 after acquiring an additional 600 shares during the last quarter. Northwestern Mutual Wealth Management Co. acquired a new position in shares of Concentrix during the 2nd quarter valued at about $25,000. Nykredit A S purchased a new stake in shares of Concentrix in the second quarter valued at about $29,000. Finally, Webster Bank N. A. purchased a new stake in shares of Concentrix in the first quarter valued at about $41,000. 90.34% of the stock is currently owned by institutional investors and hedge funds.

Concentrix Company Profile

Concentrix Corporation NASDAQ: CNXC is a global technology and services company that helps businesses improve customer engagement, operational performance and digital experiences. The company provides customer experience management, business process outsourcing, technology services and consulting to organizations across industries including technology, retail, healthcare, financial services, communications and travel.

Its offerings include customer care and technical support, sales and revenue generation, fraud prevention, analytics, artificial intelligence, automation, digital transformation and back-office services.

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