Zacks Investment Research Downgrades StarTek (SRT) to Strong Sell

StarTek (NYSE:SRT) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research note issued to investors on Friday.

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. “

A number of other brokerages have also recently commented on SRT. ValuEngine raised StarTek from a “sell” rating to a “hold” rating in a research report on Monday, July 2nd. TheStreet cut StarTek from a “c-” rating to a “d+” rating in a research report on Monday, May 21st. One investment analyst has rated the stock with a sell rating, three have given a hold rating and one has given a buy rating to the company. The stock currently has a consensus rating of “Hold” and a consensus target price of $12.67.

SRT traded up $0.06 on Friday, reaching $7.01. 71,259 shares of the stock were exchanged, compared to its average volume of 65,676. StarTek has a fifty-two week low of $6.11 and a fifty-two week high of $14.27. The company has a quick ratio of 2.41, a current ratio of 2.50 and a debt-to-equity ratio of 0.84.

A number of institutional investors and hedge funds have recently modified their holdings of the business. Dimensional Fund Advisors LP raised its stake in shares of StarTek by 2.1% during the 2nd quarter. Dimensional Fund Advisors LP now owns 856,232 shares of the business services provider’s stock valued at $5,386,000 after buying an additional 17,482 shares during the last quarter. LMR Partners LLP purchased a new position in shares of StarTek during the 2nd quarter valued at about $160,000. Finally, Bank of New York Mellon Corp raised its stake in shares of StarTek by 39.1% during the 4th quarter. Bank of New York Mellon Corp now owns 80,164 shares of the business services provider’s stock valued at $799,000 after buying an additional 22,551 shares during the last quarter. 37.40% of the stock is owned by institutional investors.

StarTek Company Profile

StarTek, Inc provides business process outsourcing services in the United States, Canada, Honduras, Jamaica, and the Philippines. It operates in three segments: Domestic, Nearshore, and Offshore. The company's service offerings include customer care, sales support, inbound sales, complex order processing, accounts receivable management, technical and product support, up-sell and cross-sell opportunities, customer intelligence analytics, and other industry-specific processes.

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