WASHINGTON—Khaishgi Mohammedulla, a director at IBEX Ltd (NASDAQ:IBEX), has sold a significant portion of his holdings in the company, according to a recent SEC filing. The transactions, which took place over three consecutive days, resulted in total sales of $275,898.
On November 6, Mohammedulla sold 427 common shares at $20 per share. The following day, November 7, he sold an additional 3,690 shares at a weighted average price of $20.0082. This transaction was executed in multiple trades with prices ranging from $20.00 to $20.03. The final sale occurred on November 8, involving 9,676 shares at a weighted average price of $20.0009, with trades executed at prices between $20.00 and $20.055.
After these transactions, Mohammedulla's direct ownership in IBEX stands at 242,782 shares.
In other recent news, Ibex Ltd has made several significant strides. The company has successfully negotiated new credit agreements totaling $75 million, primarily to repay its previous $80 million credit facility. The remaining funds are earmarked for working capital and general corporate purposes. Recently, Ibex Ltd reported a record increase in earnings per share (EPS) to $2.10, and a rise in free cash flow to $27 million. Despite a slight annual revenue decrease to $509 million, the company's Q4 revenue showed a year-over-year increase. For fiscal year 2025, the company anticipates revenue between $510 million and $525 million and adjusted EBITDA of $67 million to $69 million.
In terms of analyst ratings, Baird has maintained an Outperform rating on Ibex shares, while RBC Capital Markets has increased its price target for Ibex from $18 to $20, maintaining a Sector Perform rating. Both firms reflect confidence in Ibex's strategic direction.
In addition to financial developments, Ibex has entered a strategic partnership with AI automation solutions firm Parloa, aiming to enhance customer experience through the integration of Parloa's AI into Ibex's Wave iX solutions suite. This collaboration is expected to enable more personalized and efficient customer interactions.
InvestingPro Insights
The recent insider selling by IBEX Ltd director Khaishgi Mohammedulla comes amid a period of strong performance for the company's stock. According to InvestingPro data, IBEX has seen a significant 37.81% price return over the past six months, indicating robust investor confidence. This upward trend is further supported by a 24.51% return over the last three months.
Despite the director's decision to sell shares, IBEX's financial metrics suggest a potentially undervalued position. The company's P/E ratio stands at 10.27, which is relatively low compared to many growth stocks. This is reinforced by an InvestingPro Tip highlighting that IBEX is trading at a low earnings multiple.
Additionally, IBEX's profitability appears solid, with a gross profit margin of 30.27% and an operating income margin of 8.35% for the last twelve months. An InvestingPro Tip notes that the company has been profitable over the past year, which may provide some context for the recent insider selling activity.
It's worth noting that InvestingPro offers 13 additional tips for IBEX, providing a more comprehensive analysis for investors interested in delving deeper into the company's prospects. These insights could be particularly valuable in light of the recent insider transaction and the company's current market position.
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