The Zacks Investment Research Downgrades Convergys Corp. (CVG) to Hold

The Zacks Investment Research Downgrades 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 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. lifted their price objective on shares of Convergys Corp. from $28.00 to $30.00 and gave the stock a “neutral” rating in a research note on Wednesday, August 10th. Four research analysts have rated the stock with a hold rating and one has issued a buy rating to the stock. The stock has an average rating of “Hold” and a consensus price target of $31.00.

Convergys Corp. (NYSE:CVG) opened at 29.67 on Tuesday. The company has a 50-day moving average of $29.74 and a 200-day moving average of $27.75. The company has a market capitalization of $2.85 billion, a P/E ratio of 17.37 and a beta of 0.99. Convergys Corp. has a 1-year low of $22.53 and a 1-year high of $30.92.

Convergys Corp. (NYSE:CVG) last issued its quarterly earnings data on Monday, August 8th. The company reported $0.41 EPS for the quarter, topping analysts’ consensus estimates of $0.37 by $0.04. Convergys Corp. had a net margin of 6.14% and a return on equity of 15.02%. The business earned $692.30 million during the quarter, compared to analysts’ expectations of $695.78 million. During the same period last year, the company posted $0.33 EPS. The business’s revenue was down 3.4% on a year-over-year basis. Equities analysts expect that Convergys Corp. will post $1.91 EPS for the current fiscal year.

The company also recently declared a quarterly dividend, which was paid on Friday, October 7th. Investors of record on Friday, September 23rd were paid a dividend of $0.09 per share. 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 1.21%. Convergys Corp.’s dividend payout ratio is presently 20.93%.

In other Convergys Corp. news, Director Joseph E. Gibbs sold 25,000 shares of the business’s stock in a transaction dated 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 sale, the director now directly owns 16,777 shares of the company’s stock, valued at approximately $517,067.14. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CFO Andre S. Valentine sold 9,000 shares of the business’s stock in a transaction dated Monday, September 12th. The shares were sold at an average price of $29.56, for a total transaction of $266,040.00. Following the completion of the sale, the chief financial officer now directly owns 80,137 shares of the company’s stock, valued at $2,368,849.72. The disclosure for this sale can be found here. Corporate insiders own 1.90% of the company’s stock.

A number of large investors have recently added to or reduced their stakes in CVG. Fox Run Management L.L.C. bought a new stake in Convergys Corp. during the third quarter valued at about $450,000. Waverton Investment Management Ltd boosted its stake in Convergys Corp. by 132.0% in the third quarter. Waverton Investment Management Ltd now owns 259,606 shares of the company’s stock valued at $7,897,000 after buying an additional 147,703 shares during the period. Oregon Public Employees Retirement Fund boosted its stake in Convergys Corp. by 2.0% in the third quarter. Oregon Public Employees Retirement Fund now owns 33,538 shares of the company’s stock valued at $1,020,000 after buying an additional 665 shares during the period. Eqis Capital Management Inc. boosted its stake in Convergys Corp. by 27.4% in the third quarter. Eqis Capital Management Inc. now owns 21,909 shares of the company’s stock valued at $666,000 after buying an additional 4,717 shares during the period. Finally, Macquarie Group Ltd. boosted its stake in Convergys Corp. by 5.1% in the second quarter. Macquarie Group Ltd. now owns 719,965 shares of the company’s stock valued at $17,999,000 after buying an additional 35,022 shares during the period. 99.08% of the stock is owned by institutional investors.

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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