Keen Shuja, a director at IBEX Ltd (NASDAQ:IBEX), recently sold a significant portion of the company's common shares, according to a filing with the Securities and Exchange Commission. The transactions, which took place on November 20 and 21, involved the sale of a total of 37,569 shares. The sales were executed at prices ranging from $20.45 to $21.46 per share, with a total transaction value of approximately $791,002.
Following these transactions, Shuja holds 88,110 shares indirectly through Adia Global LLC. This activity highlights the ongoing changes in insider ownership within IBEX Ltd, a company known for its computer processing and data preparation services.
In other recent news, IBEX Limited has made significant strides in its business operations. The company recently repurchased approximately 20% of its diluted shares from The Resource Group International, Limited (TRGI). This $70 million transaction has effectively altered IBEX's ownership structure, reducing TRGI's stake and ending IBEX's status as a "controlled company" under Nasdaq rules.
IBEX Limited has also reported a strong start to fiscal year 2025 with record Q1 revenue of $129.7 million, a 4.1% increase from the previous year. The company's adjusted EBITDA rose to $15.6 million, and adjusted EPS increased by 30% to $0.52. In light of these developments, IBEX has raised its full-year revenue guidance to between $515 million and $525 million, with adjusted EBITDA expected to reach $67 million to $69 million.
In addition to these financial highlights, IBEX has expanded its higher-margin offshore and nearshore services and launched three new client relationships. The company also earned the 2024 Generative AI Product of the Year Award for AI Translate. Despite a slight decline in net cash from operating activities and an increase in Days Sales Outstanding, IBEX remains optimistic about its growth prospects.
InvestingPro Insights
While Director Keen Shuja's recent sale of IBEX Ltd (NASDAQ:IBEX) shares has caught investors' attention, it's crucial to consider the broader financial picture of the company. According to InvestingPro data, IBEX's market capitalization stands at $348.71 million, with a price-to-earnings ratio of 10.68, suggesting a potentially attractive valuation relative to earnings.
InvestingPro Tips reveal that management has been aggressively buying back shares, which could be seen as a vote of confidence in the company's future prospects. This action, combined with the company's high shareholder yield, may offset concerns raised by the insider sale.
The company's financial health appears robust, with InvestingPro data showing that IBEX operates with a moderate level of debt and has liquid assets exceeding short-term obligations. This financial stability is further underscored by the company's ability to cover interest payments with its cash flows, as noted in another InvestingPro Tip.
IBEX's stock performance has been strong, with a 21.21% price return over the last three months and a 31.57% return over the past six months. This positive momentum, coupled with analysts' predictions of profitability for the current year, paints a picture of a company that may be on a solid growth trajectory despite the recent insider sale.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for IBEX, providing a deeper understanding of the company's financial position and market performance.
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