Q: What would have to happen at Tixt to get the company back on track and have insiders been buyers?
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5i Research Answer:
We see a number of insiders exercising options as well as numerous contract buys from their CIO back in March. The last straight up insider buys were in Q4 of 2023. Revenue growth and profit growth reacceleration is the easy answer to what the stock needs to do fundementally. What this actually looks like in practice will be harder to display. The company recently rebranded to 'Telus Digital Experience.' This highlights the company's shifted focus AI. A successful rebrand with customers taking to the company's AI/data solutions could be a catalyst for a turnaround in TIXT, however with how poorly it has performed a 'wait-and-see' approach is emphasized.