Constellation Software (OTCMKTS:CNSWF) Sets New 1-Year Low - What's Next?

Key Points

• 52‑week low: Shares of Constellation Software (CNSWF) fell to a new 52‑week low of $2,118.25 and are trading well below their 50‑day ($2,381.85) and 200‑day ($2,890.18) moving averages.
• EPS miss drove weakness — quarterly EPS was $21.71 vs. $27.84 expected and revenue was slightly below estimates — while analyst sentiment is mixed (six Buys, three Holds) with a MarketBeat average rating of "Moderate Buy".
• Fundamentals show a large market cap (~$44.5B) and very high ROE (51.25%), but a high P/E (~66.8), thin net margin (5.97%), and debt/equity around 1.0, which may leave investors weighing growth versus valuation and leverage risks.

Shares of Constellation Software Inc. (OTCMKTS:CNSWF - Get Free Report) hit a new 52-week low during trading on Thursday . The stock traded as low as $2,118.25 and last traded at $2,118.25, with a volume of 431 shares changing hands. The stock had previously closed at $2,199.99.

Analysts Set New Price Targets

Several research firms recently weighed in on CNSWF. National Bankshares cut shares of Constellation Software from an "outperform" rating to a "sector perform" rating in a report on Thursday, September 25th. Desjardins upgraded Constellation Software to a "moderate buy" rating in a research note on Thursday, October 30th. CIBC reaffirmed an "outperform" rating on shares of Constellation Software in a report on Wednesday, October 29th. Zacks Research downgraded Constellation Software from a "strong-buy" rating to a "hold" rating in a research report on Thursday, November 13th. Finally, National Bank Financial cut Constellation Software from a "strong-buy" rating to a "hold" rating in a research report on Thursday, September 25th. Six analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy".

Constellation Software Price Performance

The company has a current ratio of 1.02, a quick ratio of 1.00 and a debt-to-equity ratio of 1.01. The business's fifty day moving average is $2,381.85 and its 200 day moving average is $2,890.18. The company has a market cap of $44.50 billion, a P/E ratio of 66.82 and a beta of 1.05.

Constellation Software (OTCMKTS:CNSWF - Get Free Report) last released its earnings results on Friday, November 7th. The company reported $21.71 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $27.84 by ($6.13). The firm had revenue of $2.95 billion during the quarter, compared to analysts' expectations of $2.99 billion. Constellation Software had a return on equity of 51.25% and a net margin of 5.97%. As a group, sell-side analysts anticipate that Constellation Software Inc. will post 77.19 EPS for the current year.

About Constellation Software

Constellation Software is a diversified software company that acquires, manages and builds mission-critical software businesses serving a wide range of specialized industries. Its primary focus is on vertical market software, delivering tailored solutions for sectors such as public transit, healthcare, utilities, construction and hospitality. Through its decentralized operating model, Constellation harnesses the expertise of individual business units to develop, implement and support software products that address specific customer needs.

Founded in 1995 by Mark Leonard and headquartered in Toronto, Canada, Constellation Software has grown organically and through strategic acquisitions.

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