Genpact Chief Accounting Officer Trades $226K In Company Stock

Making a noteworthy insider sell on February 13, Donald J Klunk, Chief Accounting Officer at Genpact G, is reported in the latest SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, Klunk sold 4,136 shares of Genpact. The total transaction value is $226,942.

As of Friday morning, Genpact shares are down by 0.0%, currently priced at $55.54.

Discovering Genpact: A Closer Look

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. It is a General Electric spin-off, which is still a large source of revenue for Genpact.

Genpact’s Financial Performance

Revenue Growth: Genpact’s revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 6.62%. This indicates a substantial increase in the company’s top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.

Key Insights into Profitability Metrics:

• Gross Margin: With a low gross margin of 35.63%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Genpact’s EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 0.75.

Debt Management: Genpact’s debt-to-equity ratio is below the industry average. With a ratio of 0.78, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: Genpact’s P/E ratio of 19.49 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 2.1, 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): Boasting an EV/EBITDA ratio of 13.1, Genpact demonstrates a robust market valuation, outperforming industry benchmarks.

Market Capitalization: Positioned above industry average, the company’s market capitalization underscores its superiority in size, indicative of a strong market presence.

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Why Insider Transactions Are Key in Investment Decisions

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

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.

Transaction Codes Worth Your Attention

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates 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.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.