Convergys Corp. (CVG) Downgraded by Zacks Investment Research
Convergys Corp. (NYSE:CVG) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Tuesday.
According to Zacks, “Convergys Corp. is one of the global leaders in the provision of outsourced, integrated billing and customer care services. It focuses on developing long-term strategic relationships with clients in customer-intensive industries including telecommunications, cable, broadband, satellite broadcasting, Internet services, technology and financial services. The company serves its clients through its two operating units: the Information Management Group; and the Customer Management Group. “
Separately, Citigroup Inc. boosted their price target on Convergys Corp. from $28.00 to $30.00 and gave the stock a “neutral” rating in a report on Wednesday, August 10th. Four analysts have rated the stock with a hold rating and one has assigned a buy rating to the stock. The stock presently has an average rating of “Hold” and an average price target of $31.00.
Shares of Convergys Corp. (NYSE:CVG) traded down 1.39% during trading on Tuesday, hitting $29.18. 459,305 shares of the stock traded hands. Convergys Corp. has a 52 week low of $22.53 and a 52 week high of $30.92. The firm has a market cap of $2.80 billion, a P/E ratio of 17.08 and a beta of 0.99. The company has a 50-day moving average of $29.74 and a 200-day moving average of $27.73.
Convergys Corp. (NYSE:CVG) last released its quarterly earnings results on Monday, August 8th. The company reported $0.41 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.37 by $0.04. The company had revenue of $692.30 million for the quarter, compared to analysts’ expectations of $695.78 million. Convergys Corp. had a return on equity of 15.02% and a net margin of 6.14%. The business’s quarterly revenue was down 3.4% compared to the same quarter last year. During the same period in the previous year, the business posted $0.33 earnings per share. On average, analysts forecast that Convergys Corp. will post $1.91 EPS for the current fiscal year.
The business also recently announced a quarterly dividend, which was paid on Friday, October 7th. Investors of record on Friday, September 23rd were issued a $0.09 dividend. This represents a $0.36 annualized dividend and a yield of 1.23%. The ex-dividend date was Wednesday, September 21st. Convergys Corp.’s payout ratio is presently 20.93%.
In related news, Director Jeffrey H. Fox sold 65,000 shares of the company’s stock in a transaction that occurred on Wednesday, August 17th. The stock was sold at an average price of $29.55, for a total value of $1,920,750.00. Following the sale, the director now directly owns 338,610 shares in the company, valued at $10,005,925.50. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Andre S. Valentine sold 9,000 shares of the company’s stock in a transaction that occurred on Monday, September 12th. The shares were sold at an average price of $29.56, for a total value of $266,040.00. Following the completion of the sale, the chief financial officer now owns 80,137 shares in the company, valued at $2,368,849.72. The disclosure for this sale can be found here. 1.90% of the stock is owned by corporate insiders.
A number of hedge funds have recently made changes to their positions in the stock. Aperio Group LLC raised its position in shares of Convergys Corp. by 20.5% in the first quarter. Aperio Group LLC now owns 26,584 shares of the company’s stock valued at $738,000 after buying an additional 4,529 shares during the period. Pacad Investment Ltd. acquired a new position in shares of Convergys Corp. during the first quarter valued at about $267,000. Teachers Advisors Inc. raised its position in shares of Convergys Corp. by 0.5% in the first quarter. Teachers Advisors Inc. now owns 151,042 shares of the company’s stock valued at $4,194,000 after buying an additional 754 shares during the period. BlackRock Inc. raised its position in shares of Convergys Corp. by 8.4% in the first quarter. BlackRock Inc. now owns 37,786 shares of the company’s stock valued at $1,049,000 after buying an additional 2,929 shares during the period. Finally, BlackRock Group LTD raised its position in shares of Convergys Corp. by 20.9% in the first quarter. BlackRock Group LTD now owns 66,902 shares of the company’s stock valued at $1,859,000 after buying an additional 11,554 shares during the period. Institutional investors and hedge funds own 99.08% of the company’s stock.
About Convergys Corp.
Convergys Corporation is engaged in providing customer management services. The Company’s primary focus is on growth with multinational corporations and other companies in communications and media, financial services, technology, healthcare, retail and other vertical markets. Its segments include North America and Rest of World.
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