A Look at Conduent Incorporated (CNDT) Shares in the Recent Past Indicates Growth

Conduent Incorporated (NASDAQ: CNDT) stock jumped 1.67% on Friday to $4.25 against a previous-day closing price of $4.18. With 1.47 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.27 million shares. During the session, the Information Technology Services company that operates in wider Technology sector, reached to the highest price of $4.3000 whereas the lowest price it dropped to was $4.1100. The 52-week range on CNDT shows that it touched its highest point at $7.50 and its lowest point at $3.71 during that stretch. It currently has a 1-year price target of $4.50. Beta for the stock currently stands at 1.68.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of CNDT was down-trending over the past week, with a drop of -8.99%, but this was up by 2.66% over a month. Three-month performance dropped to -8.60% while six-month performance fell -10.15%. The stock lost -32.43% in the past year, while it has lost -20.41% so far this year. A look at the trailing 12-month EPS for CNDT yields 0.49 with Next year EPS estimates of 0.45. For the next quarter, that number is 0.05. This implies an EPS growth rate of 70.70% for this year and 25.14% for next year.

Float and Shares Shorts:

At present, 215.50 million CNDT shares are outstanding with a float of 204.77 million shares on hand for trading. On Jul 14, 2022, short shares totaled 3.78 million, which was 1.75% higher than short shares on Jun 14, 2022. In addition to Mr. Clifford A. Skelton as the firm’s Pres, CEO & Director, Mr. Stephen Henry Wood serves as its Exec. VP, CFO & Principal Accounting Officer.

Institutional Ownership:

Through their ownership of 81.61% of CNDT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 47.02% of CNDT, in contrast to 33.42% held by mutual funds. Shares owned by individuals account for 115.62%. As the largest shareholder in CNDT with 17.69% of the stake, Icahn Associates Holding LLC holds 38,149,336 shares worth 38,149,336. A second-largest stockholder of CNDT, The Vanguard Group, Inc., holds 15,050,875 shares, controlling over 6.98% of the firm’s shares. Neuberger Berman Investment Advis is the third largest shareholder in CNDT, holding 13,300,164 shares or 6.17% stake. With a 2.22% stake in CNDT, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 4,781,360 shares are owned by the mutual fund manager. The Neuberger Berman Intrinsic Value, which owns about 2.05% of CNDT stock, is the second-largest Mutual Fund holder. It holds 4,419,324 shares valued at 19.09 million. Vanguard Small Cap Index Fund holds 1.91% of the stake in CNDT, owning 4,113,281 shares worth 17.77 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2022, CNDT reported revenue of $967.00M and operating income of $47.00M. It generated $136.00M net income for the quarter, which came to $119.00M over the last twelve months. The EBITDA in the recently reported quarter was $108.00M and diluted EPS was $0.61. EBITDA for the full year was $441.00M.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CNDT since 5 analysts follow the stock currently. There are 0 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 5 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With CNDT analysts setting a high price target of $6.00 and a low target of $4.50, the average target price over the next 12 months is $5.25. Based on these targets, CNDT could surge 41.18% to reach the target high and rise by 5.88% to reach the target low. Reaching the average price target will result in a growth of 23.53% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. CNDT will report FY 2022 earnings on 02/22/2023. Analysts have provided yearly estimates in a range of $0.39 being high and $0.33 being low. For CNDT, this leads to a yearly average estimate of $0.36. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Conduent Incorporated surprised analysts by -$0.02 when it reported $0.03 EPS against a consensus estimate of $0.05. The surprise factor in the prior quarter was $0.04. Based on analyst estimates, the high estimate for the next quarter is $0.10 and the low estimate is $0.08. The average estimate for the next quarter is thus $0.09.

Summary of Insider Activity:

Insiders traded CNDT stock several times over the past three months with 6 Buys and 5 Sells. In these transactions, 110,702 shares were bought while 63,622 shares were sold. The number of buy transactions has increased to 38 while that of sell transactions has risen to 23 over the past year. The total number of shares bought during that period was 2,145,823 while 650,484 shares were sold.

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