Ibex Ltd director sells over $226k in company shares By Investing.com

Mohammedulla Khaishgi, a director at IBEX Ltd (NASDAQ:), has sold a significant number of company shares, according to a recent filing with the U.S. Securities and Exchange Commission. The transactions, which took place on September 25 and 26, involved the sale of common shares for total proceeds of over $226,894.

The sales were executed in multiple trades within a price range of $20.00 to $20.0347. On September 25, Khaishgi sold 5,871 shares at a weighted average price of $20.0347 and 4,409 shares at a weighted average price of $20.016. The following day, he continued by selling 1,000 shares and 51 shares, both at a price of $20.00 per share.

Following these transactions, Khaishgi’s direct holdings in IBEX Ltd have decreased, but he still maintains a significant number of shares directly and indirectly. The indirect holdings are through his role as trustee of the Allibhoy Khaishgi Family Foundation.

Investors often look to insider transactions such as these for insights into company performance and management’s perspective on the firm’s value. While the reasons for Khaishgi’s sale have not been disclosed, the information provided in the SEC filing allows shareholders to see the details of these transactions.

In other recent news, IBEX Ltd. has reported a transformative year marked by a record increase in earnings per share (EPS) to $2.10 and a boost in free cash flow to $27 million. Despite a minor annual revenue decrease to $509 million, Q4 revenue indicated a year-over-year increase, suggesting a potential return to growth. The company is entering fiscal year 2025 with a positive outlook, expecting revenue between $510 million and $525 million and an adjusted EBITDA of $67 million to $69 million.

Financial services firm Baird has raised its price target for IBEX shares to $23.00, up from the previous target of $20.00, maintaining an Outperform rating. This adjustment follows a call with IBEX management and is based on the company’s potential for 5-7% revenue growth and 15% EBITDA margins over time, with artificial intelligence playing a significant role in driving these opportunities.

RBC Capital Markets also increased its price target for IBEX from $18 to $20, keeping a Sector Perform rating. This adjustment followed IBEX’s announcement of a return to revenue growth, marking a 1% year-over-year increase in the last quarter. The revised stock price target reflects RBC’s 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

Amid the news of insider transactions at IBEX Ltd, current and potential investors might find the following insights from InvestingPro valuable when assessing the company’s financial health and stock performance. As of the latest data, IBEX Ltd boasts a market capitalization of $334.89 million and is trading at a P/E ratio of 10.44, which indicates a potentially undervalued stock when considering its near-term earnings growth. The company’s adjusted P/E ratio over the last twelve months leading up to Q4 2024 stands at an even lower 9.26, highlighting a favorable earnings multiple for investors.

IBEX Ltd’s performance over various timeframes has shown robust returns, with a 25.14% price total return over the last three months and an impressive 37.22% over the last six months. This strong price performance is echoed by the InvestingPro Tips, which note that the company has experienced a large price uptick in the recent half-year period. Additionally, the company’s shares are trading close to their 52-week high, at 96.84% of the peak value.

InvestingPro Tips also suggest that IBEX Ltd is trading at a low P/E ratio relative to near-term earnings growth, and the company’s cash flows can sufficiently cover interest payments, which could be indicative of financial stability. For those interested in further insights, there are additional tips available on InvestingPro, including analysis on the company’s debt levels, shareholder yield, and predictions on profitability.

Overall, while the sale of shares by a company insider might raise questions, the financial metrics and stock performance data provided by InvestingPro could offer a broader perspective on the company’s current standing and future outlook. For more detailed analysis and tips, which may further inform investment decisions, potential investors can explore the full range of insights available at https://www.investing.com/pro/IBEX.

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