Benzinga - by Benzinga Insights, Benzinga Staff Writer.
A large exercise of company stock options by Kathryn Stein, Senior Vice President at Genpact (NYSE:G) was disclosed in a new SEC filing on December 6, as part of an insider exercise.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Wednesday showed that Stein, Senior Vice President at Genpact, a company in the Industrials sector, just exercised stock options worth 39,050 shares of G stock with an exercise price of $27.7.
The latest update on Thursday morning shows Genpact shares up by 0.4%, trading at $34.32. At this price, Stein's 39,050 shares are worth $258,511.
All You Need to Know About Genpact Genpact Ltd is a provider of business process management services. Clients are industry verticals and operate in banking and financial services, insurance, capital markets, consumer product goods, life sciences, infrastructure, manufacturing and services, healthcare, and high-tech. Genpact's services include aftermarket, direct procurement, risk and compliance, human resources, IT, industrial solutions, collections, finance and accounting, and media services. Genpact's end market by revenue is India. The company is a General Electric spin-off, which is still a large source of revenue for Genpact.
Financial Insights: Genpact Revenue Growth: Over the 3 months period, Genpact showcased positive performance, achieving a revenue growth rate of 2.23% as of 30 September, 2023. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.
Interpreting Earnings Metrics:
- Gross Margin: The company issues a cost efficiency warning with a low gross margin of 35.47%, indicating potential difficulties in maintaining profitability compared to its peers.
- Earnings per Share (EPS): Genpact's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 0.65.
Exploring Valuation Metrics Landscape:
- Price to Earnings (P/E) Ratio: The current P/E ratio of 14.86 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
- Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.44, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 9.77, Genpact presents an attractive value opportunity.
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Why Insider Transactions Are Important Insider transactions, although significant, should be considered within the larger context of market analysis and trends.
From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.
While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.
Important Transaction Codes Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Genpact's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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