Over the past few weeks, as companies get ready to report earnings for Q2 2023, we’ve seen insider purchases slow down and enter a “quiet period.” As a result, we dig deeper and sometimes go beyond the top five insider purchases and sales to find interesting opportunities. This was on of those weeks where we found the customer experience (CX) oriented company, Concentrix Corporation (CNXC) interesting because both an EVP and a Director recently purchased shares.
On the selling side it was interesting to see a cluster of insiders of Coinbase (COIN), including the CEO and Chief Legal Officer, continue selling shares. Given the regulatory issues the cryptocurrency brokerage is facing, I would have expected them to take a break from selling under their established 10b5-1 plans but that was not the case.
Getting back to Concentrix, the company offers a wide range of services and solutions to augment the customer experience (CX) as a whole. Concentrix has managed to expand to all parts of the CX process: designing, building, and running the product – and this is what has solidified the company’s position as one of the largest CX outsourcers in the world.
Concentrix was acquired by the Synnex Corporation (SNX) in 2008 – an IT distribution company which is now known as TD Synnex following Synnex’s merger with Tech Data in September 2021. In the period in which Concentrix was being incubated within Synnex, the company acquired IBM’s CX division in addition to the customer managemnted business Convergys.
On December 1st, 2020, Concentrix was spun out of Synnex and went public with shares priced at $80 each, with shareholders of Synnex receiving one share of Concentrix for every share of Synnex that they owned. By 2022, Concentrix’s stock had run up to over $200 a share, but recently dropped back down to its IPO price, sitting at $82.90 a share as of July 7, 2023.