Lionbridge Technology (NASDAQ: LIOX), Insider Buying, and Navigating Unfamiliar Territories

Lionbridge Technology (NASDAQ: LIOX), Insider Buying, and Navigating Unfamiliar Territories

Everybody needs a little help when they travel to a country they are unfamiliar with. A guide or someone local who knows the lay of the land is always extremely helpful, making the experience more enjoyable and relaxing. Companies are just like individuals when traveling, and need assistance and guidance when entering a foreign market. Many corporations need advice regarding culture, translation services and knowledge of the local market. To fill this void many companies are hiring Lionbridge Technology to help.

Partnerships with leading brands and their agencies allows Lionbridge Technology (NASDAQ: LIOX) to increase efficiency and customer engagement. The company is able to combine expertise in digital operations, localization, and content marketing for its customers. Lionbridge services over 815 leading brands, offering a variety of outsourced solutions by providing innovative technology and most importantly in-country knowledge. The company has made a couple of positive announcements as of late that is expected to help boost the company’s revenue over the next fiscal year. .

Recently the company released details about its partner program that will be used for its Global Marketing Operations solution. The program allows Lionbridge to integrate marketing technology solutions from partners, which includes companies such Dotsub, BrightEdge, ActiveStandards, Sitecore and PlyMedia with its GMO services. Effectively, this allows marketers to be able to work with a single partner to manage and deliver multichannel digital marketing campaigns and content in local markets around the globe.

In late December, LIOX made public that Thomas Cook Online selected Lionbridge as its official translation web partner. LIOX will provide Transcreation, Global Web Operations and content creation, which all will be localized to Thomas Cook. The new verticals and offerings of Lionbridge will allow Thomas Cook to increase its exposure and value for clients around the world. The Lionbridge and Thomas Cook partnership is expected to increase revenue, mainly due to the online channel by providing relevant and accurate information with premier search optimization.

The stock is currently trading just below $4.00 a share, and has a 52-week range of $2.40 – $4.25. Lately there has been some insider buying, Edward Blechschmid, Director purchased 25,000 shares on January 14^th. On December 20^th, Guy Chazal, Director, bought 27,500 shares. CEO Rory Cowan also purchased 60,000 shares on December 26^th. Due to the share price being just $3.95, overall these are not tremendous buy-ins, but it does install confidence that the executive team is putting its money into the company.

Lionbridge has a market cap of $236m and has some competition in the industry. The company’s main opposition stems from translation and technology providers such as Translations.com, SDL International Plc, Moravia and Welocalize. These companies are direct competitors and compete for market share. The company also faces some pressure from information technology software development companies such as Persistent Systems and Beyondsoft.

Despite the competition Lionbridge has grown over 50% year-over-year and is consistently increasing its market share. When looking at the company’s 1-year stock chart it displays a solid uptrend that keeps appreciating. Lionbridge is poised to have another solid year and is a growth story that will continue to provide great returns.