Khaishgi Mohammedulla, a director at IBEX Ltd (NASDAQ:IBEX), recently sold 1,129 common shares of the company, according to a recent SEC filing. The shares were sold at a price of $20 each, amounting to a total transaction value of $22,580. Following this sale, Khaishgi holds 222,558 shares directly. This transaction was part of a pre-arranged trading plan.
In other recent news, IBEX Limited has made significant strides in restructuring its board and financial outcomes. The company has repurchased approximately 20% of its diluted shares from The Resource Group International, Limited (TRGI), totaling around $70 million. This has led to a shift in IBEX's ownership structure, reducing TRGI's stake and ending IBEX's status as a "controlled company" under Nasdaq rules.
IBEX's recent developments also include a strong start to fiscal year 2025, with record Q1 revenue of $129.7 million, a 4.1% increase from the previous year. The company's adjusted EBITDA rose to $15.6 million, and adjusted EPS increased by 30% to $0.52. IBEX has raised its full-year revenue guidance to between $515 million and $525 million, with adjusted EBITDA expected to reach $67 million to $69 million.
Furthermore, IBEX has expanded its higher-margin offshore and nearshore services, now comprising 76% of total revenue, and launched three new client relationships. The company also earned the 2024 Generative AI Product of the Year Award for AI Translate. Despite a slight decline in net cash from operating activities and an increase in Days Sales Outstanding, IBEX remains optimistic about its growth prospects.
InvestingPro Insights
While director Khaishgi Mohammedulla's recent sale of IBEX Ltd (NASDAQ:IBEX) shares might raise eyebrows, a closer look at the company's financials and market performance reveals a more nuanced picture. According to InvestingPro data, IBEX is currently trading at a P/E ratio of 10.18, which is relatively low compared to its earnings growth potential. This aligns with one of the InvestingPro Tips, which notes that IBEX is "Trading at a low P/E ratio relative to near-term earnings growth."
Moreover, IBEX has shown strong market performance recently. The company's stock has seen a 27.35% price total return over the past six months, and an 18.02% return in the last three months. This robust performance is reflected in another InvestingPro Tip, which highlights IBEX's "Strong return over the last three months."
It's worth noting that while the director has sold shares, management overall has been actively repurchasing stock. An InvestingPro Tip points out that "Management has been aggressively buying back shares," which often signals confidence in the company's future prospects.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for IBEX, providing a deeper understanding of the company's financial health and market position.
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