It was reported on November 14, that N. V. Tyagarajan, Director at Genpact G executed a significant insider sell, according to an SEC filing.

What Happened: Tyagarajan’s recent move involves selling 2,000 shares of Genpact. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value is $93,400.

Genpact‘s shares are actively trading at $45.1, experiencing a down of 0.0% during Friday’s morning session.

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

Genpact: Delving into Financials

Revenue Growth: Over the 3 months period, Genpact showcased positive performance, achieving a revenue growth rate of 2.95% as of 30 September, 2024. This reflects a substantial increase in the company’s top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Insights into Profitability:

• Gross Margin: The company faces challenges with a low gross margin of 35.63%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 0.75, Genpact showcases strong earnings per share.

Debt Management: Genpact’s debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.77.

Financial Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 12.39 is lower than the industry average, implying a discounted valuation for Genpact’s stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.75 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company’s EV/EBITDA ratio 11.16 is above the industry average, suggesting that the market values the company more highly for each unit of EBITDA. This could be attributed to factors such as strong growth prospects or superior operational efficiency.

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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Understanding the Significance of Insider Transactions

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

Exploring the legal landscape, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider’s new purchase, there’s a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Deciphering Transaction Codes in Insider Filings

Examining transactions, investors often concentrate on those unfolding 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.