Convergys Corporation (CVG) Downgraded to Sell at Zacks Investment Research
Zacks Investment Research cut shares of Convergys Corporation (NYSE:CVG) from a hold rating to a sell rating in a research note published on Friday morning.
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. “
A number of other brokerages also recently issued reports on CVG. SunTrust Banks, Inc. restated a hold rating and set a $26.00 price objective on shares of Convergys Corporation in a research report on Monday, October 9th. Robert W. Baird restated a hold rating and set a $28.00 price objective on shares of Convergys Corporation in a research report on Tuesday, October 24th. Barrington Research began coverage on Convergys Corporation in a research report on Tuesday, October 17th. They set a market perform rating on the stock. BidaskClub downgraded Convergys Corporation from a hold rating to a sell rating in a research report on Tuesday, August 1st. Finally, Citigroup Inc. decreased their price objective on Convergys Corporation from $25.00 to $24.00 and set a neutral rating on the stock in a research report on Friday. One research analyst has rated the stock with a sell rating, six have issued a hold rating and one has given a buy rating to the company’s stock. The stock presently has an average rating of Hold and a consensus target price of $26.00.
Shares of Convergys Corporation (NYSE:CVG) traded down $0.27 during mid-day trading on Friday, reaching $23.33. The company’s stock had a trading volume of 1,515,400 shares, compared to its average volume of 747,825. Convergys Corporation has a fifty-two week low of $20.15 and a fifty-two week high of $26.66. The company has a debt-to-equity ratio of 0.25, a quick ratio of 2.48 and a current ratio of 2.60. The stock has a market capitalization of $2,180.93, a P/E ratio of 12.62, a PEG ratio of 1.34 and a beta of 1.11.
Convergys Corporation (NYSE:CVG) last issued its quarterly earnings data on Tuesday, November 7th. The business services provider reported $0.42 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.44 by ($0.02). Convergys Corporation had a net margin of 4.54% and a return on equity of 13.92%. The company had revenue of $688.30 million for the quarter, compared to analysts’ expectations of $692.34 million. During the same quarter last year, the company earned $0.46 earnings per share. The company’s revenue for the quarter was down 7.1% on a year-over-year basis. equities research analysts expect that Convergys Corporation will post 1.86 earnings per share for the current fiscal year.
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The firm also recently announced a quarterly dividend, which will be paid on Friday, January 5th. Stockholders of record on Friday, December 22nd will be paid a dividend of $0.10 per share. The ex-dividend date is Thursday, December 21st. This represents a $0.40 dividend on an annualized basis and a dividend yield of 1.71%. Convergys Corporation’s dividend payout ratio is 30.77%.
In other news, Director Jeffrey H. Fox sold 43,609 shares of the company’s stock in a transaction that occurred on Wednesday, September 6th. The stock was sold at an average price of $23.53, for a total transaction of $1,026,119.77. Following the transaction, the director now owns 338,804 shares of the company’s stock, valued at $7,972,058.12. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Andre S. Valentine sold 10,000 shares of the company’s stock in a transaction that occurred on Tuesday, August 15th. The shares were sold at an average price of $23.52, for a total value of $235,200.00. The disclosure for this sale can be found here. Corporate insiders own 1.70% of the company’s stock.
Institutional investors and hedge funds have recently added to or reduced their stakes in the company. LS Investment Advisors LLC grew its stake in shares of Convergys Corporation by 17.8% during the second quarter. LS Investment Advisors LLC now owns 7,453 shares of the business services provider’s stock valued at $177,000 after buying an additional 1,125 shares during the last quarter. Victory Capital Management Inc. grew its stake in shares of Convergys Corporation by 17.7% during the second quarter. Victory Capital Management Inc. now owns 7,498 shares of the business services provider’s stock valued at $178,000 after buying an additional 1,125 shares during the last quarter. Riverhead Capital Management LLC grew its stake in Convergys Corporation by 71.0% in the second quarter. Riverhead Capital Management LLC now owns 7,525 shares of the business services provider’s stock worth $179,000 after purchasing an additional 3,125 shares in the last quarter. Flinton Capital Management LLC grew its stake in Convergys Corporation by 69.1% in the second quarter. Flinton Capital Management LLC now owns 8,428 shares of the business services provider’s stock worth $200,000 after purchasing an additional 3,444 shares in the last quarter. Finally, Teacher Retirement System of Texas bought a new position in Convergys Corporation in the third quarter worth approximately $201,000. 98.72% of the stock is currently owned by hedge funds and other institutional investors.
Convergys Corporation Company Profile
Convergys Corporation is engaged in customer experience outsourcing. The Company’s geographical segments include North America and Rest of World. The Company offers services across industries, including communications and media, technology, financial services, retail, government and healthcare. The Company helps businesses to create customer experiences across multiple interaction channels, such as voice, chat, e-mail and interactive voice response.
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