Short Interest in Genpact Limited (NYSE:G) Expands By 33.3%

Key Points

• Short interest in Genpact jumped 33.3% in April to 10,873,946 shares (about 6.5% of shares short), leaving a days-to-cover ratio of 4.2.
• Genpact recently beat quarterly expectations (EPS $0.97 vs. $0.93; revenue $1.32B, +5.6% YoY), has a market cap of $5.76B, and pays a quarterly dividend of $0.1875 (annualized $0.75, ~2.2% yield).
• Analyst sentiment is mixed—MarketBeat shows a consensus "Hold" with an average target price of $47.29 after several recent rating and target adjustments.

Genpact Limited (NYSE:G - Get Free Report) was the target of a large increase in short interest during the month of April. As of April 15th, there was short interest totaling 10,873,946 shares, an increase of 33.3% from the March 31st total of 8,156,518 shares. Based on an average trading volume of 2,581,908 shares, the days-to-cover ratio is presently 4.2 days. Currently, 6.5% of the shares of the stock are short sold.

Genpact Stock Performance

Shares of NYSE:G opened at $33.95 on Wednesday. The company has a current ratio of 1.66, a quick ratio of 1.66 and a debt-to-equity ratio of 0.46. Genpact has a 12 month low of $33.67 and a 12 month high of $50.41. The company has a market capitalization of $5.76 billion, a price-to-earnings ratio of 10.85, a PEG ratio of 1.00 and a beta of 0.74. The firm's 50-day moving average is $37.70 and its 200 day moving average is $41.54.

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

Genpact Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 25th. Shareholders of record on Wednesday, June 10th will be given a $0.1875 dividend. This represents a $0.75 annualized dividend and a yield of 2.2%. The ex-dividend date of this dividend is Wednesday, June 10th. Genpact's payout ratio is 23.96%.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the stock. Needham & Company LLC reduced their target price on shares of Genpact from $53.00 to $50.00 and set a "buy" rating on the stock in a report on Friday, February 6th. Susquehanna set a $42.00 price target on Genpact in a research report on Friday, February 6th. Wall Street Zen cut Genpact from a "buy" rating to a "hold" rating in a research note on Saturday, March 14th. Citigroup upgraded Genpact from a "hold" rating to a "strong-buy" rating in a research report on Friday, February 13th. Finally, Mizuho lowered their price objective on Genpact from $51.00 to $49.00 and set a "neutral" rating for the company in a research note on Tuesday, February 10th. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, Genpact currently has a consensus rating of "Hold" and an average target price of $47.29.

Insider Activity

In other news, CEO Balkrishan Kalra sold 2,800 shares of the company's stock in a transaction that occurred 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 sale, the chief executive officer directly owned 525,007 shares of the company's stock, valued at $21,404,535.39. This represents a 0.53% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 1.58% of the stock is owned by company insiders.

Hedge Funds Weigh In On Genpact

Institutional investors have recently modified their holdings of the stock. Osbon Capital Management LLC bought a new stake in Genpact during the 4th quarter valued at $25,000. Private Trust Co. NA raised its holdings in shares of Genpact by 364.2% in the third quarter. Private Trust Co. NA now owns 636 shares of the business services provider's stock valued at $27,000 after acquiring an additional 499 shares in the last quarter. Quent Capital LLC purchased a new stake in Genpact in the third quarter worth about $27,000. Westside Investment Management Inc. lifted its stake in Genpact by 193.5% in the third quarter. Westside Investment Management Inc. now owns 678 shares of the business services provider's stock worth $28,000 after acquiring an additional 447 shares during the period. Finally, iSAM Funds UK Ltd bought a new position in Genpact during the 3rd quarter worth about $29,000. 96.03% of the stock is owned by hedge funds and other institutional investors.

About Genpact

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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