Needham lowered the price target for the Genpact Limited (NYSE:G) stock to “a Buy”. The rating was released on November 03, 2020. We previously noted in another research note published on May 12, 2020 by Needham that reiterated the stock to a Buy with a price target of $40 for G stock. The research report from JP Morgan has upgraded the stock from Neutral to Overweight, with a price target set at $39. The stock was reiterated by Needham, who disclosed in a research note on August 08, 2019, to Buy and set the price objective to $48. In their research brief published June 14, 2019, Needham analysts initiated the Genpact Limited stock to Buy with a price target of $44.
Historical Earnings Surprises and Revenue Forecasts
Profit is the most critical financial performance measure. Every investor in a business is looking forward to the earnings report as stock price to increase when earnings exceed market expectations and progressively decrease when earnings do not meet expectations. The firm reported an earnings per share (EPS) of $0.51 during the last quarter as opposed to a consensus estimate of $0.49, which indicates the company beat its estimate by $0.02, which implies that the company surprised the market by 4.10%. It appears that the average earnings per share estimate for the current quarter (ending in Mar 2021) is $0.48. This is an average of 9 analysts’ earnings, where the high earnings per share estimate is $0.52 and the low earnings per share estimate is $0.47. According to 7 analyst estimates, an average revenue estimate of $924.43M is projected for the current quarter with a high revenue estimate of $935.79M and a low estimate of $919.4M.
The latest trade, Performances and Moving Averages give us the following Picture
The share price of Genpact Limited (NYSE:G) raised 5.86% to close Wednesday’s market session at $47.67, higher as compared to yesterday’s close. The stock price fluctuated between $47.61 and $49.00 throughout the trading session with the volume trading being 12478060 shares, which represented a significant variation when compared to the three months average volume of 1.23 million shares. The firm’s stock price fluctuated 6.45% within the last five trades and 7.70% within the last 30 trades, which was a significant change from the beginning of this year. Despite the fact that the share price increased 34.09% in the last 6 months and 23.98% was added to its value over the previous 3 months. G stock is trading at a margin of 7.41%, 11.12% and 17.23% apart from the 20-Day, 50-Day and 200-Day Simple Moving Average prices.
As of the close of trading, G deals in the Technology domain. The stock is trading 5.30 percent below its 52-week high and 49.67 percent above its 52-week low. For example, looking both at the price and the high and low measurements of 52 weeks will give you a clearer picture of the direction the price is heading. The firm’s Weighted Alpha is 42.43. A positive weighted alpha indicates the firm has done well over the course of the year, whereas one below 0 indicates that the firm has done poorly.
What Does Genpact Limited’s Profitability and Valuation Ratios Tell Us About the Stock?
With regard to the profitability of the company, the operating margin is currently at 11.80 percent and the profit margin is 8.30 percent, and the company has reported a gross margin of 34.80 percent. The profit margin, also known as the revenue ratio or gross profit ratio, is an efficiency figure used to estimate the business’s profitability by comparing net income and sales. The higher the number, the more profits are generated for the company and vice versa.
The stock’s market cap achieved a total value of $8.87 billion as of the last trading session. Market capitalization is the total value of all outstanding shares of a corporation and it is used to measure a company’s market value. The price-to-earnings ratio for Genpact Limited (NYSE:G) is 30.15. The price-to-earnings ratio is a method of assessing corporate values by comparing them to their per-share profit. Forward P/E stands at 18.43. Forward price-to-earnings is calculated using predicted earnings for the next financial year’s P/E determination. The stock has achieved an effective Price-to-Sales Ratio of 2.39 that mirrors the cost to be found for sales by the market. The firm managed a Price-to-Book ratio of 4.92, which equates the market value of a stock with its book value.
Is Insider Trading a Real Thing?
Tyagarajan N. V., the President and CEO at Genpact Limited (G) has sold 70,000 shares of firm on Apr 16 at a price of $45.01 against the total amount of $3.15 million. In another inside trade, Tyagarajan N. V., President and CEO of Genpact Limited (NYSE:G) sold 70,000 shares of the firm on Apr 15 for a total worth of $3.13 million at a price of $44.70. An inside trade which took place on Mar 12, Senior Vice President of Genpact Limited Kalra Balkrishan sold 1,000 shares of firm against total price of $42800.0 at the cost of $42.80 per share.