Resource Group International Ltd, a major shareholder and director of IBEX Ltd (NASDAQ:IBEX), has sold a significant portion of its holdings in the company. According to a recent filing, the company sold 54,517 common shares on November 11, 2024, at an average price of approximately $20.01 per share. The total transaction amounted to $1,091,081.
Following this sale, Resource Group International now holds 5,293,915 shares of IBEX Ltd. The sales were executed in multiple transactions, with prices ranging from $20.00 to $20.14 per share.
This transaction was conducted under a 10b5-1 trading plan, which allows insiders to set up a predetermined plan to sell company stock, helping to avoid concerns about insider trading.
In other recent news, IBEX Limited has announced a promising start to fiscal year 2025, posting record Q1 revenue of $129.7 million, a 4.1% increase from the previous year. The company's earnings call also indicated an increase in adjusted EBITDA to $15.6 million and a 30% rise in adjusted EPS to $0.52. In light of these developments, IBEX has elevated its full-year revenue guidance to between $515 million and $525 million, with adjusted EBITDA predicted to reach between $67 million and $69 million.
The company has also reported the launch of three new client relationships and the receipt of 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, management remains optimistic about FY 2025 prospects.
While the company acknowledged potential macroeconomic challenges, it expressed confidence in maintaining revenue growth and enhancing profitability. This confidence is largely based on new client acquisitions and market share gains, which are seen as key drivers for future success. These are some of the latest developments for IBEX Limited.
InvestingPro Insights
The recent insider sale by Resource Group International Ltd comes at a time when IBEX Ltd (NASDAQ:IBEX) is showing some interesting financial metrics and trends. According to InvestingPro data, IBEX is currently trading at a P/E ratio of 10.02, which suggests the stock may be undervalued relative to its earnings. This aligns with one of the InvestingPro Tips, which indicates that IBEX is "Trading at a low earnings multiple."
Furthermore, the company has demonstrated strong recent performance, with a 31.9% price return over the last three months and a 38.69% return over the past six months. This positive momentum is reflected in another InvestingPro Tip, which notes a "Significant return over the last week."
Despite the insider sale, IBEX's financial health appears robust. The company's cash flows can sufficiently cover interest payments, and it operates with a moderate level of debt. These factors, combined with the fact that liquid assets exceed short-term obligations, suggest a stable financial position.
It's worth noting that while Resource Group International has reduced its stake, IBEX's management has been aggressively buying back shares, indicating confidence in the company's future prospects. This information, along with 11 additional InvestingPro Tips, is available to InvestingPro subscribers, offering a more comprehensive view of IBEX's financial situation and potential.
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