5 Underperforming Stocks Insiders are Buying

4. Concentrix Corp (NASDAQ:CNXC)

Number of Hedge Fund Investors: 20

Customer experience solutions company Concentrix Corp (NASDAQ:CNXC) ranks fourth in our list of the top underperforming stocks this year with recent insider purchases. The stock is down about 40% this year.

Kathryn Hayley, a director at Concentrix Corp (NASDAQ:CNXC), bought 379 shares at $65.96 per share. The transaction took place on April 1. Since then the stock is down 8%.

FPA Queens Road Small Cap Value Fund stated the following regarding Concentrix Corporation (NASDAQ:CNXC) in its fourth quarter 2023 investor letter:

“Concentrix Corporation (NASDAQ:CNXC) is one of two top customer experience (CX) vendors globally. The company started off managing call centers but has since evolved into a high-tech business process outsourcer (BPO) that also designs and runs customer-facing websites and apps, integrates the data, and optimizes a client’s customer interactions. CX is a relatively new business, and Concentrix has been acquiring smaller competitors. In March, 2023 they bought WebHelp, a leading European CX player, for $4.8B in cash and stock. 26 We believe the WebHelp acquisition will help consolidate an industry where Concentrix and Teleperformance are the largest players. The company was spun out from TD Synnex, another of the Fund’s core holdings, and we have always been impressed with the company’s innovation and growth. The market is currently concerned about the potential of artificial intelligence to disrupt Concentrix’ core call center business, which has resulted in the underperformance of shares of all CX companies.”