IBS Group reduced its stake in Luxoft
Today, IBS Group sold a 4% stake in Luxoft , a software development company. In total, IBS Group account has about 37% of the company's shares in the amount of 11.87 million, and the cost of the shares sold was about $ 71.1 million.
The main reason for the sale of the block of shares could be a decrease in the market value of Luxoft by 14.06% from the mark in $ 67.28 to $ 57.82 amid falling Down Jones index by 1.29% and NASDAQ by 3.25%. In the 2015 report, the IBS Group similarly announced possible plans for a complete abandonment of the share in Luxoft or its subsequent reduction. Together with investors, Luxoft shares were also sold by the general director Dmitry Loshchinin - for 3.6% of the company's shares he received $ 15.9 million.
Luxoft is developing software for the corporate sector - among its main customers are companies such as UBS, Deutsche Bank, Citi, Ford, Avaya and Juniper. Strong growth allowed Luxoft to increase revenue to $ 520.5 million. Luxoft received about 36.3% from Deutsche Bank, and 20.1% from UBS. In part, it was these banks that could affect the decline in company shares - taking into account the large role in the growth of the company's income, the banks finished the last quarter relatively weakly, which caused investors' insecurity in the growth of Luxoft income in the near future. Despite this, analysts believe in Luxoft's profit growth due to the potential savings that the company's automation services bring to banks, so their rejection of Luxoft services is unlikely.
According to Sberbank CIB analyst Julia Gordeeva, the reason for the sale of shares could be the desire of shareholders to support Russian business or the simple desire to monetize labor and investment due to the large liquidity of Luxoft securities. So, only in 2015, Luxoft shares rose from $ 38.51 to $ 77.13, after which in 2016 their value began to decline. In just one day, January 4, shares fell in price from $ 76.55 to $ 71.36.