Constellation Software (OTCMKTS:CNSWF) Shares Down 6.3% - Here's Why

Key Points

• Shares fell about 6.3% intraday to roughly $2,029.60 (from a $2,165 close) on light trading of ~2,752 shares, about 81% below average volume.
• The company missed EPS expectations—reporting $24.64 vs. estimates of $29.20 (a $4.56 shortfall)—while revenue of $3.18 billion slightly beat estimates; net margin was 4.22% with ROE 49.29%.
• Analyst sentiment is mixed but tilted positive with a consensus of "Moderate Buy" (six Buy, two Hold); CIBC reissued an outperform rating while Zacks recently downgraded to Hold.

Constellation Software Inc. (OTCMKTS:CNSWF - Get Free Report)'s share price was down 6.3% during trading on Wednesday . The company traded as low as $1,995.50 and last traded at $2,029.6040. Approximately 2,752 shares changed hands during trading, a decline of 81% from the average daily volume of 14,303 shares. The stock had previously closed at $2,165.00.

Analyst Ratings Changes

Several analysts have recently issued reports on CNSWF shares. Canadian Imperial Bank of Commerce reissued an "outperform" rating on shares of Constellation Software in a report on Friday, January 16th. Zacks Research cut shares of Constellation Software from a "strong-buy" rating to a "hold" rating in a research report on Thursday, November 13th. Six investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, Constellation Software presently has a consensus rating of "Moderate Buy".

Constellation Software Trading Down 6.9%

The firm has a market capitalization of $42.73 billion, a price-to-earnings ratio of 86.99 and a beta of 1.03. The company has a debt-to-equity ratio of 1.01, a current ratio of 1.02 and a quick ratio of 1.00. The firm's 50-day simple moving average is $1,989.24 and its 200 day simple moving average is $2,446.98.

Constellation Software (OTCMKTS:CNSWF - Get Free Report) last issued its earnings results on Monday, March 9th. The company reported $24.64 earnings per share for the quarter, missing analysts' consensus estimates of $29.20 by ($4.56). Constellation Software had a net margin of 4.22% and a return on equity of 49.29%. The business had revenue of $3.18 billion during the quarter, compared to analyst estimates of $3.15 billion. Equities analysts expect that Constellation Software Inc. will post 77.19 earnings per share for the current year.

Constellation Software Company Profile

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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