In a recent series of transactions, a director of IBEX Ltd (NASDAQ:IBEX), who is also a ten percent owner, sold a significant number of shares in the company, totaling over $1.28 million. The sales occurred over three separate days, with prices ranging from $20.00 to $20.0495 per share.
On September 19, 2024, the director sold 1,572 shares at a price of $20.00 each. The following day, an additional 3,303 shares were sold at slightly varied prices, with a weighted average of $20.002. The sales continued on September 23, where the director disposed of 59,269 shares at a weighted average price of $20.0495. These latter two transactions involved sales at multiple prices within a specified range.
The transactions have left the director with a substantial holding of 5,375,114 shares in IBEX Ltd following the sales. According to the footnotes in the filing, The Resource Group International Limited, which conducted the sale, is directly holding the shares. However, The Resource Group Pakistan may also be deemed to beneficially own the shares due to its relationship with The Resource Group International Limited, but it disclaims beneficial ownership except to the extent of its pecuniary interest.
The sale was signed off by Mohammed Khaishgi, the CEO of The Resource Group International Limited, on September 23, 2024. This move by a high-ranking insider is often closely monitored by investors as it can provide insights into the company's performance and future prospects.
In other recent news, IBEX Ltd. has been the center of significant developments. The company experienced 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 minor 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, projecting revenue between $510 million and $525 million, and an adjusted EBITDA of $67 million to $69 million.
Financial services firm Baird heightened its price target for IBEX shares to $23.00, maintaining an Outperform rating. The firm notes the company's aspirations to achieve 5-7% revenue growth and 15% EBITDA margins over time, with artificial intelligence playing a significant role. Simultaneously, RBC Capital Markets raised its price target for IBEX from $18 to $20, maintaining a Sector Perform rating. The adjustment followed IBEX's recent announcement of a return to revenue growth.
Furthermore, 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
Amidst the recent insider transactions at IBEX Ltd, it's noteworthy to consider the company's current financial health and market performance. With a market capitalization of $336.4 million, IBEX Ltd is trading at a P/E ratio of 10.53, which suggests a valuation that may be attractive to investors looking for earnings at a reasonable price. Adjusted for the last twelve months leading up to Q4 2024, the P/E ratio stands even lower at 9.35. This is complemented by a PEG ratio of 0.98 for the same period, indicating a potential alignment between the company's earnings growth rate and its stock price.
InvestingPro Tips highlight that IBEX Ltd's management has been actively buying back shares, which could signal their confidence in the company's value. Additionally, the stock is identified as trading near its 52-week high, with a price that is 97.71% of this peak, reflecting strong recent performance. Over the last six months, the stock has experienced a large price uptick of 33.93%, and analysts forecast profitability for the company this year.
For investors seeking further insights, InvestingPro offers a suite of additional tips for IBEX Ltd, including analysis on shareholder yield, liquidity, and debt levels. With 14 more InvestingPro Tips available, there is a wealth of information for those considering an investment in IBEX Ltd. To explore these insights, visit: https://www.investing.com/pro/IBEX
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