B.Riley FBR analyst Kevin Liu maintained a Buy rating on PRGX Global (NASDAQ: PRGX) yesterday and set a price target of $12. The company’s shares closed yesterday at $9.25.
Liu observed:
“We note that expected growth rates are similar for COTV, yet PRGX trades at just 8.9x EBITDA on a TTM basis and at an even lower 6.7x based on our FY19 EBITDA estimate. While COTV’s ~40% EBITDA margin is over twice that of PRGX’s, we remind investors that our current estimates reflect significant investments in the Adjacent Services segment expected to fuel further acceleration in growth over time. In any event, the acquisition of COTV has positive implications for PRGX both from a strategic and valuation perspective. Analyst certification and important disclosures can be found on pages 3 – 6 of this report. This document represents an abbreviated discussion of the subject issuer and should not be used as the sole basis for an investment decision.”
According to TipRanks.com, Liu is a 5-star analyst with an average return of 15.8% and a 65.9% success rate. Liu covers the Technology sector, focusing on stocks such as Cornerstone Ondemand, American Software, and Computer Task.
PRGX Global has an analyst consensus of Moderate Buy, with a price target consensus of $12.
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The company has a one-year high of $10.30 and a one-year low of $5.40. Currently, PRGX Global has an average volume of 61.19K.
Based on the recent corporate insider activity of 41 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of PRGX in relation to earlier this year. Last month, Michael Cochrane, the SVP, Global Client Operations of PRGX sold 8,750 shares for a total of $82,513.
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PRGX Global, Inc. is a business analytics and information services company. It operates through following segments: Recovery Audit Services-Americas, Recovery Audit Services-Europe/Asia-Pacific, and Adjacent Services. The Recovery Audit Services -Americas segment provides recovery audit services in U.S., Canada and Latin America.
