Genpact (NYSE:G) Shares Gap Up Following Earnings Beat

Genpact Limited (NYSE:G) shares gapped up prior to trading on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $38.39, but opened at $43.09. Genpact shares last traded at $45.03, with a volume of 551,505 shares traded.

The business services provider reported $0.97 earnings per share for the quarter, beating the consensus estimate of $0.90 by $0.07. Genpact had a net margin of 11.01% and a return on equity of 22.71%. The business had revenue of $1.29 billion for the quarter, compared to analysts’ expectations of $1.27 billion. During the same quarter in the previous year, the business posted $0.85 earnings per share. The firm’s revenue for the quarter was up 6.6% compared to the same quarter last year. Genpact has set its FY 2025 guidance at 3.600-3.610 EPS. Q4 2025 guidance at 0.930-0.940 EPS.

Genpact Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 23rd. Investors of record on Tuesday, December 9th will be given a dividend of $0.17 per share. The ex-dividend date is Tuesday, December 9th. This represents a $0.68 annualized dividend and a dividend yield of 1.5%. Genpact’s payout ratio is currently 22.59%.

Wall Street Analyst Weigh In

Several analysts have weighed in on the company. Wall Street Zen cut Genpact from a “buy” rating to a “hold” rating in a research report on Friday, September 5th. Weiss Ratings restated a “hold (c)” rating on shares of Genpact in a research note on Wednesday, October 8th. Deutsche Bank Aktiengesellschaft began coverage on Genpact in a research note on Thursday, July 17th. They issued a “hold” rating and a $47.00 price target on the stock. JPMorgan Chase & Co. lowered their price objective on Genpact from $55.00 to $50.00 and set a “neutral” rating for the company in a research report on Wednesday, August 20th. Finally, Citigroup upgraded shares of Genpact to a “hold” rating in a report on Thursday, October 23rd. Three research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $51.13.

Insider Transactions at Genpact

In other Genpact news, CEO Balkrishan Kalra sold 55,000 shares of the company’s stock in a transaction dated Thursday, September 11th. The shares were sold at an average price of $43.36, for a total value of $2,384,800.00. Following the transaction, the chief executive officer directly owned 295,246 shares in the company, valued at $12,801,866.56. This represents a 15.70% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP Piyush Mehta sold 76,902 shares of the firm’s stock in a transaction that occurred on Friday, September 12th. The stock was sold at an average price of $42.58, for a total transaction of $3,274,487.16. Following the transaction, the senior vice president directly owned 134,880 shares in the company, valued at approximately $5,743,190.40. This trade represents a 36.31% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 3.07% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Genpact

Several institutional investors have recently bought and sold shares of the business. Cornerstone Planning Group LLC bought a new position in Genpact in the first quarter worth approximately $27,000. Private Trust Co. NA increased its holdings in shares of Genpact by 364.2% in the 3rd quarter. Private Trust Co. NA now owns 636 shares of the business services provider’s stock valued at $27,000 after acquiring an additional 499 shares during the period. Quent Capital LLC bought a new position in shares of Genpact in the 3rd quarter worth $27,000. Westside Investment Management Inc. lifted its stake in shares of Genpact by 193.5% during the 3rd quarter. Westside Investment Management Inc. now owns 678 shares of the business services provider’s stock worth $28,000 after purchasing an additional 447 shares during the last quarter. Finally, Shell Asset Management Co. purchased a new stake in shares of Genpact during the 3rd quarter worth $33,000. 96.03% of the stock is owned by hedge funds and other institutional investors.

Genpact Stock Performance

The business has a 50-day moving average of $41.13 and a two-hundred day moving average of $43.35. The company has a debt-to-equity ratio of 0.32, a current ratio of 1.53 and a quick ratio of 1.53. The company has a market cap of $7.76 billion, a P/E ratio of 14.37, a P/E/G ratio of 1.32 and a beta of 0.85.

About Genpact

Genpact Limited provides business process outsourcing and information technology services in India, rest of Asia, North and Latin America, and Europe. It operates through three segments: Financial services; Consumer and Healthcare; and High Tech and Manufacturing. The Financial Services segment offers retail customer onboarding, customer service, collections, card servicing operations, loan and payment operations, commercial loan, equipment and auto loan, mortgage origination, compliance services, reporting and monitoring, and wealth management operations support; financial crime and risk management services; and underwriting support, new business processing, policy administration, claims management, catastrophe modeling and actuarial services, as well as property and casualty claims.