Assessing Whether Conduent Incorporated (NASDAQ: CNDT) Is Over- Or Undervalued


Neuberger Berman Investment Advis.. has recently announced that it has increased stake in Conduent Incorporated (NASDAQ:CNDT) by 64.07%. After grabbing 6.66 million shares, the institutional investor is now in possession of 2.6 million shares of the Technology Company. The new investment brought the stake of investor firm to 3.19% having worth around $12.73 million. Moreover, D. E. Shaw & Co. LP increased its share by 1.7 million to have a control over 6.05 million shares. And Victory Capital Management, Inc.. raised its holdings to 1.01 million shares by acquiring 4.41 million shares or 2.11% of the stake.

Conduent Incorporated (CNDT) concluded trading on 08/26/20 at a closing price of $3.66, with 2.15 million shares of worth about $7.85 million changed hands on the day. Weekly performance of the stock remained negative as price took a plunge of -1.08% during that period and on Wednesday the price saw a loss of about -2.79%. Currently the company’s common shares owned by public are about 209.13M shares, out of which, 196.98M shares are available for trading.

A deeper look into what the analysts at Wall Street are thinking about the price target of this stock provides us with the following: 5 analysts are covering the CNDT stock and their offered price forecasts bring an average price target of $5.25. Over the next 12 months, analysts forecasted that the stock’s price could jump as high as $6.00 and could fall to a lowest price of $4.50. Analysts also issued an outlook of 2.80 for the Conduent Incorporated stock for next 12 months. The stock’s current price level is 30.29% above of average price target set by the analysts, while a rise to estimated low would result in gain of 18.67 for the stock. However, touching the estimated high of $6.00 would mean a gain of 39.0% for the stock.

According to filings with the U.S. Securities and Exchange Commission (SEC), insiders took part in trade of the company’s stock for 50 times over the past 12 months. They bought 4,171,662 shares in 38 of the transactions. In 12 selling transactions, insiders dumped 195,073 shares.

Vanguard Total Stock Market Index, Fidelity Small Cap Value Fund, and Vanguard Small Cap Index Fund are the top 3 mutual funds which are holding stakes in Conduent Incorporated Vanguard Total Stock Market Index is currently holding 4.61 million shares of worth totaling $8.8 million. The company recently came buying 0.0 shares which brought its stake up to 2.20% of the company’s outstanding shares. Fidelity Small Cap Value Fund bought 1.92 million shares, after which its hold over company’s outstanding shares expand to 1.87%, leaving 3.91 million shares with the mutual fund that have a worth of about $7.47 million. Vanguard Small Cap Index Fund, after selling 3.91 million shares, have now control over 1.87% of the stake in the company. It holds 23100.0 shares of worth $7.46 million.

Conduent Incorporated (NASDAQ: CNDT) started trading at $3.72, below -$0.05 from concluding price of the previous day. However, the stock finished the trading on the day at a closing price of $3.66, or with a loss of -2.79%. Stock saw a price change of -1.08% in past 5 days and over the past one month there was a price change of 89.64%. Year-to-date (YTD), CNDT shares are showing a performance of -40.97% which decreased to -41.25% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $1.54 but also hit the highest price of $7.97 during that period. While comparing its average daily trading volume of 4.26 million shares, we see that about 2.15 million changed hands on the day. The stock is currently trading 12.62% above its 20-day simple moving average (SMA20), while that difference is up 39.37% for SMA50 and it goes to 0.38% higher than SMA200.

Neuberger Berman Investment Advis.. acquired 6.66 million shares of Conduent Incorporated having value of about $12.73 million. Data submitted at the U.S SEC by Neuberger Berman Investment Advis.. revealed that the firm now holds 2.6 million shares in the company valued at close to $9523298.04, or have control over 64.07% stake in the company. Conduent Incorporated (NASDAQ: CNDT) currently have 209.13M outstanding shares and institutions hold larger chunk of about 81.10% of that. Holding of mutual funds in the company is about 31.94% while other institutional holders and individual stake holders have control over 49.17% and 117.63% of the stake respectively.

The stock has a current market capitalization of $765.78M and its 3Y-monthly beta is at 1.72. It has posted earnings per share of -$3.33 in the same period. It has Quick Ratio of 1.50 while making debt-to-equity ratio of 1.40. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for CNDT, volatility over the week remained 7.62% while standing at 9.29% over the month.

Analysts are in expectations that Conduent Incorporated (CNDT) stock would likely to be making an EPS of $0.12 in the current quarter, while forecast for next quarter ESPS is $0.13 and it is $0.49 for next year. For the current quarter EPS, analysts have given the company a lowest target $0.11 which is $0.14 at the higher side of the target for the same. When we compare those targets with actual EPS, we find that company posted an EPS of $0.16 in the same quarter a year ago. Stock’s fiscal year EPS is expected to drop by -353.30% while it is estimated to increase by 21.67% in next year.

Analysts at 5 brokerage firms have issued recommendations for the Conduent Incorporated (CNDT)’s stock and average of those rates the stock at a “Moderate Buy” and assign it a score of 2.80. Out of those 5 Wall Street analysts, 1 recommended a “Buy” rating, while 4 were in favor recommending the stock as a “Hold” and 0 analyst recommended the stock as “Sell”.

Digging deeper we find that several firms have released their research notes about the support levels of the stock. Most recent of them is a note released by JP Morgan on April 14, 2020 offering a Neutral rating for the stock and assigned a target price of to it. Coverage by Needham stated Conduent Incorporated (CNDT) stock as a Buy in their note to investors on February 21, 2020, suggesting a price target of $5.50 for the stock. On August 09, 2019, JP Morgan Upgrade their recommendations, while on May 09, 2019, Needham Reiterated their ratings for the stock with a price target of $14. Stock get a Neutral rating from JP Morgan on May 09, 2019.


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