Keen Shuja, a director at IBEX Ltd (NASDAQ:IBEX), recently sold a total of 1,345 shares of the company at a weighted average price ranging from $20.45 to $20.47. The total value of the shares sold amounted to approximately $27,507. This transaction was executed on September 23, 2024, and is part of the latest filings with the U.S. Securities and Exchange Commission.
The shares sold by Shuja represent a portion of his holdings in IBEX Ltd, with the director still owning 138,679 shares after the transaction. The sale was carried out through multiple trades, and the reported price reflects the weighted average sales price. Keen Shuja has indicated a willingness to provide full information regarding the number of shares sold at each separate price upon request to either the issuer, any security holder of the issuer, or the staff of the SEC.
IBEX Ltd, a company specializing in computer processing and data preparation services, is incorporated and based in Washington D.C. This recent sale by a member of the company's board of directors might be of interest to current and potential investors who closely monitor insider trading activities for insights into company performance and executive confidence.
The sale was signed off by Lisa Lenstrohm, acting as Attorney-in-Fact, on September 24, 2024. As of now, there have been no further remarks or comments provided by Shuja or IBEX Ltd regarding the rationale behind the sale or any potential impact on the company's operations or strategy.
In other recent news, IBEX Ltd. reported a transformative year with 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, IBEX's Q4 revenue indicated a year-over-year increase, suggesting a return to growth. The company is entering fiscal year 2025 with a positive outlook, expecting revenue between $510 million and $525 million and adjusted EBITDA of $67 million to $69 million.
Financial services firm Baird increased its price target for IBEX shares to $23.00, up from the previous target of $20.00, maintaining an Outperform rating. RBC Capital Markets also raised its price target for IBEX from $18 to $20, maintaining a Sector Perform rating. Both these adjustments are based on recent developments and the company's financial projections.
Baird highlighted the company's aspirations to achieve 5-7% revenue growth and 15% EBITDA margins over time, with artificial intelligence playing a significant role in driving these margin expansion opportunities. The firm also noted that IBEX's revenue, EBITDA, and EPS for the fourth quarter surpassed Wall Street's expectations. RBC Capital Markets echoed similar sentiments, reflecting confidence in IBEX's strategic direction, which includes a focus on more profitable service areas and the implementation of advanced technologies.
InvestingPro Insights
Amid the recent insider trading activity at IBEX Ltd, the market has been showing a strong performance for the company's stock. According to InvestingPro data, IBEX Ltd has been experiencing a notable uptick in its share price over various time frames, including a 33.93% increase over the last six months and a 34.38% return over the last year. This suggests that investor confidence in the company may remain high despite the director's sale of shares.
InvestingPro Tips indicate that IBEX Ltd is currently trading at a low P/E ratio relative to near-term earnings growth, with a P/E ratio of 10.5 and an adjusted P/E ratio for the last twelve months as of Q4 2024 at 9.3. Additionally, the company's return on assets for the same period stands at a robust 11.46%, reflecting efficient use of its assets to generate profits. These metrics, coupled with the strong share performance, could be seen as signs of underlying strength in the company's financials and market position.
Moreover, the company has been identified as having a high shareholder yield, which is often a signal of management's commitment to returning value to shareholders. Another InvestingPro Tip points out that management has been aggressively buying back shares, which can be a positive indicator of the company's belief in its own undervalued stock and a potential catalyst for future price appreciation.
For investors interested in a deeper analysis, there are additional InvestingPro Tips available for IBEX Ltd, which can be accessed through InvestingPro's platform. These tips provide further insights that could help investors make more informed decisions regarding their investment in IBEX Ltd.
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