Zacks Investment Research Lowers Convergys Corp. (CVG) to Hold
Convergys Corp. (NYSE:CVG) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released 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. increased their price objective 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 given a buy rating to the stock. The stock has a consensus rating of “Hold” and a consensus target price of $31.00.
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Shares of Convergys Corp. (NYSE:CVG) traded down 1.39% on Tuesday, hitting $29.18. 459,305 shares of the stock traded hands. The firm’s 50 day moving average is $29.74 and its 200-day moving average is $27.73. Convergys Corp. has a 12 month low of $22.53 and a 12 month high of $30.92. The company has a market cap of $2.80 billion, a PE ratio of 17.08 and a beta of 0.99.
Convergys Corp. (NYSE:CVG) last released its quarterly earnings data on Monday, August 8th. The company reported $0.41 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.37 by $0.04. The firm earned $692.30 million during 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 was down 3.4% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.33 earnings per share. Equities analysts predict that Convergys Corp. will post $1.91 earnings per share for the current year.
The company also recently declared a quarterly dividend, which was paid on Friday, October 7th. Stockholders of record on Friday, September 23rd were given a $0.09 dividend. This represents a $0.36 dividend on an annualized basis and a dividend yield of 1.23%. The ex-dividend date was Wednesday, September 21st. Convergys Corp.’s dividend payout ratio is currently 20.93%.
In other news, Director Jeffrey H. Fox sold 65,000 shares of the firm’s stock in a transaction 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 completion of the transaction, the director now owns 338,610 shares in the company, valued at $10,005,925.50. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, Director Joseph E. Gibbs sold 25,000 shares of the firm’s stock in a transaction on Wednesday, September 7th. The shares were sold at an average price of $30.82, for a total value of $770,500.00. Following the completion of the transaction, the director now owns 16,777 shares of the company’s stock, valued at approximately $517,067.14. The disclosure for this sale can be found here. 1.90% of the stock is owned by insiders.
Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. boosted its position in shares of Convergys Corp. by 4.5% in the second quarter. Vanguard Group Inc. now owns 6,623,546 shares of the company’s stock worth $165,589,000 after buying an additional 285,165 shares in the last quarter. Fuller & Thaler Asset Management Inc. boosted its position in shares of Convergys Corp. by 20.0% in the second quarter. Fuller & Thaler Asset Management Inc. now owns 3,673,490 shares of the company’s stock worth $91,837,000 after buying an additional 612,174 shares in the last quarter. BlackRock Institutional Trust Company N.A. raised its stake in Convergys Corp. by 3.4% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 2,871,903 shares of the company’s stock worth $79,753,000 after buying an additional 93,668 shares during the last quarter. AQR Capital Management LLC raised its stake in Convergys Corp. by 0.8% in the second quarter. AQR Capital Management LLC now owns 1,860,348 shares of the company’s stock worth $46,509,000 after buying an additional 15,383 shares during the last quarter. Finally, FMR LLC raised its stake in Convergys Corp. by 1,192.1% in the second quarter. FMR LLC now owns 1,098,300 shares of the company’s stock worth $27,458,000 after buying an additional 1,013,300 shares during the last quarter. 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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