What is up with RWS


Hello,

I have been looking at some graphs. I work in the translation and language technology industry –I am not financially involved with this company– and I would like to be more in touch with what's going on in the market. RWS Plc is a huge company, top 1-2 grossing language service provider in the world depending on the year. It recently (Nov. 2020) went through a merger with SDL plc which makes the most used translation softwar suite in the world, it is like the “Microsoft Office”, “Adobe”, etc. of the industry. RWS has a lot of assets and not a lot of debt, good cash flow, etc. and insiders are buying up shares. They are buying new companies, clearly (to me) they are in a growth phase. But share prices are down, profit margin has gone down 50% since last year, and they fired like 2k people in mid 2021 (according to a website I found linked in Yahoo Finance, which I reckon get their info from regulatory filings).

What is going on? Is it just a matter of capping out? Do investors not see growth potential? Is the company in some sort of “grind” phase where it cuts a lot of losses and spends a lot of money, and are investors scared by that?


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