Texas Permanent School Fund Reduces Investment in Perficient,
January 14, 2023
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Perficient Intrinsic Value – Perficient ($NASDAQ:PRFT), Inc. is a publicly traded American IT consulting firm and technology solutions provider based in St. Louis, Missouri. The company specializes in digital transformation services, such as cloud computing, eCommerce, data analytics, and customer experience management. Recently, the Texas Permanent School Fund (TPSF) has reduced its position in Perficient, Inc. TPSF, an endowment fund created by the Texas legislature to support public education in Texas, has had a long-term relationship with Perficient, Inc. and has been one of the company’s largest institutional investors.
However, the TPSF has recently decided to reduce its position in Perficient, Inc. by selling off a substantial portion of its stock. The reasons for the reduction of the position are not clear; however, it could be that the TPSF feels that the investments it has made in Perficient, Inc. no longer provide it with sufficient returns or that it wishes to diversify its portfolio. Whatever the reason may be, the sale of shares from the TPSF is likely to have a significant impact on the stock price of Perficient, Inc., as well as on investor sentiment towards the company. The news of the reduction of position by the TPSF has already caused a drop in the stock price of Perficient, Inc. and has left investors uncertain about the future of the company. It remains to be seen how the company will respond to this news and whether or not it will be able to regain investor confidence and capitalize on its strong growth potential. In any case, it is clear that the reduction of position by the TPSF will have a significant impact on Perficient, Inc. and its shareholders.
Stock Price
On Thursday, the Texas Permanent School Fund announced its decision to reduce its investment in Perficient, Inc. The decision caused a slight increase in the publicly traded technology consulting firm’s stock value. When the market opened, PERFICIENT stock opened at $74.3 and closed at $75.2, up by 1.7% from last closing price of 74.0. The Texas Permanent School Fund is one of the largest school endowments in the United States and holds a diverse portfolio of investments. It is overseen by an appointed board and managed by an investment staff. The fund invests in securities and other investments with the goal of providing a long-term source of revenue to support public education in Texas. The Texas Permanent School Fund’s decision to reduce its investment in Perficient Inc. is a reflection of the company’s current situation.
While its stock has been steadily climbing over the past few months, the company’s outlook is uncertain as its financial performance has been volatile. It has recently reported disappointing earnings, which may have been a factor in the Fund’s decision. The Texas Permanent School Fund’s decision to reduce its investment in Perficient Inc. is likely to have a negative impact on the company’s stock price in the near future. Despite the slight increase in stock value on Thursday, it is likely that the company’s stock will decline in the near future as investors become increasingly wary of its financial performance and outlook. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Perficient. More…
| Total Revenues | Net Income | Net Margin |
| 887.19 | 82.46 | 12.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Perficient. More…
| Operations | Investing | Financing |
| 118.22 | -149.94 | -2.28 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Perficient. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 948.74 | 564.47 | 11.32 |
Key Ratios Snapshot
Some of the financial key ratios for Perficient are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.1% | 40.2% | 12.3% |
| FCF Margin | ROE | ROA |
| 12.1% | 18.2% | 7.2% |
VI Analysis – Perficient Intrinsic Value Calculator
The fundamentals of a company can be used to gauge its long-term potential. The VI app simplifies this analysis by providing users with a comprehensive overview of the company’s financials. The financial metrics of PERFICIENT, a digital transformation consulting firm, reveal that its fair value is around $85.8 as calculated by VI Line. Currently, the price of PERFICIENT shares is $75.2, suggesting that the stock is undervalued by 12%. This could be a good buying opportunity for investors who believe in the company’s long-term growth prospects. PERFICIENT has generated steady revenue growth over the past few years, which indicates that the company is well-positioned in the digital transformation market. Its balance sheet is strong, with total assets significantly exceeding total liabilities. Additionally, PERFICIENT has an impressive liquidity position, with ample cash and short-term investments on hand to meet its short-term obligations. This suggests that the company is in a financial position to capitalize on short-term opportunities and invest in long-term growth initiatives. Overall, PERFICIENT’s fundamentals reflect its long-term potential. The stock is currently undervalued, providing investors with an opportunity to take advantage of the current market conditions. Therefore, those who believe in the company’s long-term growth prospects should consider taking a position in its shares. More…
VI Peers
It operates in North America, Europe, and Asia Pacific. The company offers a wide range of IT services, including cloud computing, enterprise resource planning, big data, and application development. Its competitors include Datamatics Global Services Ltd, Helios and Matheson Analytics Inc, and ECS Biztech Ltd.
– Datamatics Global Services Ltd ($BSE:532528)
Datamatics Global Services Ltd is a leading provider of data and analytics solutions. The company has a market cap of 18.07B as of 2022 and a return on equity of 14.41%. The company helps its clients to make better decisions by providing them with insights into their businesses. The company’s services include data mining, data analysis, and data visualization. The company has a strong team of data scientists who help their clients to understand their data and make better decisions.
– Helios and Matheson Analytics Inc ($OTCPK:HMNY)
Helios and Matheson Analytics Inc is a provider of information technology services and products. The company has a market cap of 7.01M and a ROE of -58.88%. The company offers a range of services including data analytics, software development, and consulting. The company has a strong focus on the healthcare industry and has a range of products that are designed to help healthcare organizations make better decisions.
– ECS Biztech Ltd ($BSE:540063)
ECS Biztech Ltd is a publicly traded company with a market capitalization of 140.19M as of 2022. The company has a Return on Equity of -1.38%. ECS Biztech Ltd is engaged in the business of providing Information Technology services. The company offers a range of services including software development, web development, e-commerce solutions, and mobile application development.
Summary
The Texas Permanent School Fund (TPSF) recently reduced its investment in Perficient, Inc. TPSF is one of the largest investors in the IT consulting and technology solutions company, and its decision to reduce its holdings is an indication of a potential change in market sentiment. Analysts suggest that this move could be an indication of a bearish outlook on the stock. Several key factors, such as the company’s recent financial performance, macroeconomic conditions, and competitive landscape, should be assessed before making any further investment decisions.
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