StarTek, Inc. (SRT) Downgraded to Hold at Zacks Investment Research

StarTek, Inc. (NYSE:SRT) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Thursday, July 20th.

According to Zacks, “StarTek, Inc. is a global provider of process management services and owns and operates branded vertical market Internet web sites. Their process management service platforms include E-commerce support and fulfillment, provisioning management for telecommunications systems, high-end inbound technical support, and an offering of supply chain management services. As an outsourcer of process management services as its core business, StarTek allows its clients to focus on their primary business, reduce overhead, replace fixed costs with variable costs, and reduce working capital needs. “

Shares of StarTek (SRT) opened at 12.03 on Thursday. The stock has a market cap of $191.87 million, a price-to-earnings ratio of 45.92 and a beta of -0.07. StarTek has a 12-month low of $4.41 and a 12-month high of $14.78. The firm’s 50-day moving average price is $12.59 and its 200-day moving average price is $10.27.

StarTek (NYSE:SRT) last posted its quarterly earnings data on Wednesday, August 9th. The business services provider reported $0.03 earnings per share for the quarter, topping the consensus estimate of $0.02 by $0.01. The firm had revenue of $73.98 million for the quarter, compared to analysts’ expectations of $76.84 million. StarTek had a return on equity of 9.60% and a net margin of 1.43%. During the same quarter last year, the business earned ($0.11) EPS. On average, analysts forecast that StarTek will post $0.30 EPS for the current fiscal year.

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In other StarTek news, Director Arnaud Ajdler sold 94,603 shares of StarTek stock in a transaction that occurred on Thursday, June 1st. The stock was sold at an average price of $11.48, for a total value of $1,086,042.44. Following the completion of the sale, the director now directly owns 37,507 shares in the company, valued at $430,580.36. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Company insiders own 17.80% of the company’s stock.

Large investors have recently modified their holdings of the company. Dimensional Fund Advisors LP increased its stake in StarTek by 3.2% in the first quarter. Dimensional Fund Advisors LP now owns 954,100 shares of the business services provider’s stock valued at $8,291,000 after buying an additional 29,596 shares in the last quarter. Engine Capital Management LLC increased its stake in StarTek by 8,617.8% in the first quarter. Engine Capital Management LLC now owns 784,425 shares of the business services provider’s stock valued at $6,817,000 after buying an additional 775,427 shares in the last quarter. Renaissance Technologies LLC increased its stake in shares of StarTek by 3.9% in the first quarter. Renaissance Technologies LLC now owns 634,300 shares of the business services provider’s stock valued at $5,512,000 after buying an additional 23,900 shares during the period. Vanguard Group Inc. increased its stake in shares of StarTek by 31.3% in the second quarter. Vanguard Group Inc. now owns 376,404 shares of the business services provider’s stock valued at $4,607,000 after buying an additional 89,679 shares during the period. Finally, Acadian Asset Management LLC increased its stake in shares of StarTek by 70.6% in the first quarter. Acadian Asset Management LLC now owns 150,761 shares of the business services provider’s stock valued at $1,307,000 after buying an additional 62,407 shares during the period. Institutional investors and hedge funds own 44.20% of the company’s stock.

StarTek Company Profile

StarTek, Inc is a customer engagement business process outsourcing (BPO) services provider, delivering customer care solutions. The Company operates through three segments: Domestic, Nearshore and Offshore. As of December 31, 2016, its Domestic segment included the operations of 13 facilities in the United States and one facility in Canada; its Offshore segment included the operations of four facilities in the Philippines, and its Nearshore segment included the operations of two facilities in Honduras and one facility in Jamaica.

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