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

What Happened: After conducting a thorough analysis, Lindstrom sold 3,218 shares of Genpact. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total transaction value is $149,875.

The latest market snapshot at Friday morning reveals Genpact shares down by 0.0%, trading at $45.1.

Get to Know Genpact Better

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.

Financial Insights: Genpact

Revenue Growth: Genpact displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 2.95%. This indicates a notable increase in the company’s top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Analyzing Profitability Metrics:

• 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): Genpact’s EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 0.75.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.77.

Financial Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 12.39 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The P/S ratio of 1.75 is lower than the industry average, implying a discounted valuation for Genpact’s stock in relation to 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 Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

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Exploring the Significance of Insider Trading

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it’s crucial to evaluate them in conjunction with other investment factors.

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.

Unlocking the Meaning of Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals 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.