Mohammedulla Khaishgi, a director of IBEX Ltd (NASDAQ:IBEX), has recently sold a significant amount of company stock, transactions that are documented in the latest regulatory filings. The sales, which took place on September 30 and October 1, 2024, amounted to a total value of over $250,000.
The first set of transactions on September 30 involved the sale of 10,286 common shares at a weighted average price of $20.0014, as well as 2,324 shares sold at an average price of $20.004. These transactions were executed in multiple trades with prices ranging from $20.00 to $20.0125 for the first batch and from $20.00 to $20.015 for the second, as noted in the footnotes of the filing. On the following day, October 1, Khaishgi sold an additional 112 shares at a flat rate of $20.00 per share.
Following these transactions, Khaishgi's direct holdings in IBEX Ltd decreased to 256,575 shares, while his indirect holdings, as a trustee of the Allibhoy Khaishgi Family Foundation, stood at 97,312 shares.
The sales come at a time when investors are closely monitoring insider activities for hints about a company's financial health and future prospects. While the reasons behind Khaishgi's decision to sell shares are not disclosed in the filing, the disclosed transactions provide a transparent view of the director's trading activities in relation to the company's stock.
IBEX Ltd, with its headquarters located at 1717 Pennsylvania Avenue NW in Washington, D.C., operates in the computer processing and data preparation industry. The company's business and financial performance is followed by investors and analysts in the technology sector.
In other recent news, IBEX Ltd. has seen substantial developments. The company reported a transformative year with an increase in EPS to $2.10 and a rise in free cash flow to $27 million. Despite a slight annual revenue decrease to $509 million, IBEX's Q4 revenue indicated a year-over-year increase, suggesting a return to growth. The company anticipates revenue between $510 million and $525 million and adjusted EBITDA of $67 million to $69 million for fiscal year 2025.
Baird, a financial services firm, raised its price target for IBEX Ltd. shares to $23.00, maintaining an Outperform rating. The adjustment followed a call with IBEX management, where Baird expressed a positive outlook on the company's potential, citing AI as a significant driver for margin expansion.
RBC Capital Markets also raised its price target for IBEX from $18 to $20, maintaining a Sector Perform rating. This adjustment followed IBEX's announcement of a return to revenue growth. RBC's revised stock price target reflects confidence in IBEX's strategic direction, which includes a focus on more profitable service areas and the implementation of advanced technologies.
Baird reaffirmed its Outperform rating for IBEX with a steady price target of $20.00, following the company's strong financial results for the fourth quarter. The firm's analysis highlighted that IBEX's revenue, EBITDA, and EPS for the quarter surpassed Wall Street's expectations. These recent developments underscore the positive trajectory of IBEX's financial performance.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on IBEX Ltd's financial position and market performance, providing context to the insider sales reported. The company's market capitalization stands at $323.13 million, reflecting its current market valuation.
IBEX's P/E ratio of 10.08 suggests that the stock is trading at a relatively low earnings multiple, which aligns with one of the InvestingPro Tips indicating that the company is "Trading at a low P/E ratio relative to near-term earnings growth." This could be of interest to value investors looking for potentially undervalued opportunities in the tech sector.
Furthermore, IBEX has demonstrated strong recent performance, with a 19.5% price total return over the past three months and an impressive 33.93% return over the last six months. This robust price action is highlighted by another InvestingPro Tip, which notes the "Strong return over the last three months."
It's worth noting that while Director Khaishgi has sold shares, InvestingPro Tips also point out that "Management has been aggressively buying back shares," suggesting a broader corporate strategy of returning value to shareholders. This, combined with the company's "High shareholder yield," as indicated by another tip, paints a complex picture of IBEX's capital allocation decisions.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips on IBEX, providing a deeper dive into the company's financial health and market position.
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