It was reported on November 26, that Heather White, SVP & Chief Legal Officer at Genpact G executed a significant insider sell, according to an SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Tuesday showed that White sold 2,541 shares of Genpact. The total transaction amounted to $118,235.

The latest update on Wednesday morning shows Genpact shares down by 0.0%, trading at $46.82.

About 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.

A Deep Dive into Genpact’s Financials

Revenue Growth: Genpact’s remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 6.62%. This signifies a substantial increase in the company’s top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Key Profitability Indicators:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 35.63%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Genpact’s EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 0.75.

Debt Management: Genpact’s debt-to-equity ratio is below the industry average at 0.78, reflecting a lower dependency on debt financing and a more conservative financial approach.

Valuation Overview:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 12.86 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a P/S ratio of 1.82 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 10.99, the company’s EV/EBITDA ratio outperforms industry norms, reflecting positive market perception. This positioning indicates optimistic expectations for the company’s future performance.

Market Capitalization Analysis: The company’s market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Navigating the Impact of Insider Transactions on Investments

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor’s decision-making process.

In the context of legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider’s new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Transaction Codes To Focus On

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates 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.

Insider Buying Alert: Profit from C-Suite Moves

Benzinga Edge reveals every insider trade in real-time. Don’t miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.

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