Zacks Investment Research Lowers Convergys Corp. (CVG) to Hold
According to Zacks, “Convergys Corp. is one of the global leaders in the provision of outsourced, integrated billing and customer care services. It focuses on developing long-term strategic relationships with clients in customer-intensive industries including telecommunications, cable, broadband, satellite broadcasting, Internet services, technology and financial services. The company serves its clients through its two operating units: the Information Management Group; and the Customer Management Group. “
Separately, Citigroup Inc. lifted their price objective on Convergys Corp. from $28.00 to $30.00 and gave the stock a neutral rating in a research report on Wednesday, August 10th. Four investment analysts have rated the stock with a hold rating and one has assigned a buy rating to the company. The stock presently has a consensus rating of Hold and an average price target of $31.00.
Shares of Convergys Corp. (NYSE:CVG) opened at 29.69 on Tuesday. Convergys Corp. has a 52-week low of $22.53 and a 52-week high of $30.92. The stock has a market capitalization of $2.85 billion, a price-to-earnings ratio of 17.38 and a beta of 0.99. The company has a 50-day moving average price of $29.73 and a 200-day moving average price of $27.77.
Convergys Corp. (NYSE:CVG) last issued its quarterly earnings data on Monday, August 8th. The company reported $0.41 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.37 by $0.04. The firm had revenue of $692.30 million for the quarter, compared to analyst estimates of $695.78 million. Convergys Corp. had a return on equity of 15.02% and a net margin of 6.14%. The business’s quarterly revenue was down 3.4% compared to the same quarter last year. During the same period last year, the company earned $0.33 EPS. On average, equities analysts anticipate that Convergys Corp. will post $1.91 earnings per share for the current year.
The company also recently declared a quarterly dividend, which was paid on Friday, October 7th. Investors of record on Friday, September 23rd were given a dividend of $0.09 per share. The ex-dividend date of this dividend was Wednesday, September 21st. This represents a $0.36 annualized dividend and a dividend yield of 1.21%. Convergys Corp.’s dividend payout ratio is presently 20.93%.
In related news, CFO Andre S. Valentine sold 9,000 shares of Convergys Corp. stock in a transaction that occurred on Monday, September 12th. The stock was sold at an average price of $29.56, for a total transaction of $266,040.00. Following the sale, the chief financial officer now directly owns 80,137 shares in the company, valued at $2,368,849.72. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Joseph E. Gibbs sold 25,000 shares of Convergys Corp. stock in a transaction that occurred on Wednesday, September 7th. The shares were sold at an average price of $30.82, for a total value of $770,500.00. Following the sale, the director now owns 16,777 shares in the company, valued at $517,067.14. The disclosure for this sale can be found here. Corporate insiders own 1.90% of the company’s stock.
Large investors have recently added to or reduced their stakes in the stock. MSI Financial Services Inc raised its stake in Convergys Corp. by 37.5% in the third quarter. MSI Financial Services Inc now owns 3,364 shares of the company’s stock valued at $102,000 after buying an additional 918 shares in the last quarter. Advisor Group Inc. purchased a new stake in Convergys Corp. during the second quarter valued at $109,000. LS Investment Advisors LLC raised its stake in Convergys Corp. by 72.8% in the second quarter. LS Investment Advisors LLC now owns 5,827 shares of the company’s stock valued at $146,000 after buying an additional 2,455 shares in the last quarter. C M Bidwell & Associates Ltd. purchased a new stake in Convergys Corp. during the first quarter valued at $180,000. Finally, LMR Partners LLP purchased a new stake in Convergys Corp. during the second quarter valued at $201,000. Institutional investors own 99.08% of the company’s stock.
Convergys Corp. Company Profile
Convergys Corporation is engaged in providing customer management services. The Company’s primary focus is on growth with multinational corporations and other companies in communications and media, financial services, technology, healthcare, retail and other vertical markets. Its segments include North America and Rest of World.
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