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 report issued 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. raised their price target on Convergys Corp. from $28.00 to $30.00 and gave the stock a “neutral” rating in a research report on Wednesday, August 10th. Four research analysts have rated the stock with a hold rating and one has issued a buy rating to the company. Convergys Corp. currently has an average rating of “Hold” and an average price target of $31.00.
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Shares of Convergys Corp. (NYSE:CVG) traded down 1.39% during trading on Tuesday, hitting $29.18. The stock had a trading volume of 459,305 shares. Convergys Corp. has a 52 week low of $22.53 and a 52 week high of $30.92. The firm has a 50 day moving average price of $29.74 and a 200-day moving average price of $27.73. The stock has a market capitalization of $2.80 billion, a price-to-earnings ratio of 17.08 and a beta of 0.99.
Convergys Corp. (NYSE:CVG) last announced its quarterly earnings data on Monday, August 8th. The company reported $0.41 earnings per share for the quarter, beating the Zacks’ 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%. Convergys Corp.’s revenue for the quarter was down 3.4% compared to the same quarter last year. During the same period last year, the firm posted $0.33 EPS. On average, equities research analysts forecast that Convergys Corp. will post $1.91 EPS for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which was paid on Friday, October 7th. Stockholders of record on Friday, September 23rd were given a $0.09 dividend. The ex-dividend date of this dividend was Wednesday, September 21st. This represents a $0.36 dividend on an annualized basis and a dividend yield of 1.23%. Convergys Corp.’s dividend payout ratio is currently 20.93%.
In other news, Director Jeffrey H. Fox sold 65,000 shares of Convergys Corp. 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 approximately $10,005,925.50. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CFO Andre S. Valentine sold 9,000 shares of Convergys Corp. stock in a transaction that occurred on Monday, September 12th. The stock was 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 insiders.
Several large investors have recently modified their holdings of CVG. Advisor Group Inc. acquired a new stake in shares of Convergys Corp. during the second quarter worth $109,000. LS Investment Advisors LLC raised its stake in shares of Convergys Corp. by 72.8% in the second quarter. LS Investment Advisors LLC now owns 5,827 shares of the company’s stock worth $146,000 after buying an additional 2,455 shares in the last quarter. C M Bidwell & Associates Ltd. acquired a new stake in shares of Convergys Corp. during the first quarter worth $180,000. LMR Partners LLP acquired a new stake in shares of Convergys Corp. during the second quarter worth $201,000. Finally, Tower Research Capital LLC TRC raised its stake in shares of Convergys Corp. by 2,602.1% in the second quarter. Tower Research Capital LLC TRC now owns 9,025 shares of the company’s stock worth $226,000 after buying an additional 8,691 shares in the last quarter. Hedge funds and other institutional investors own 99.08% of the company’s stock.
Convergys Corp. Company Profile
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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