Constellation Software (OTCMKTS:CNSWF) Shares Gap Up - Here's Why

Key Points

• Shares of Constellation Software gapped up pre-market, opening at $1,731 versus the prior close of $1,658 and last trading near $1,715 on light volume (757 shares).
• The company missed EPS expectations, reporting $24.64 vs. $29.20 estimate while revenue of $3.18B was roughly in line; the business shows a high ROE (48.18%) but a low net margin (4.22%).
• Analysts maintain a Moderate Buy consensus (six Buys, two Holds) and Canadian Imperial Bank of Commerce reiterated an "outperform" rating.

Constellation Software Inc. (OTCMKTS:CNSWF - Get Free Report)'s share price gapped up prior to trading on Monday . The stock had previously closed at $1,658.00, but opened at $1,731.00. Constellation Software shares last traded at $1,715.00, with a volume of 757 shares.

Analyst Upgrades and Downgrades

Separately, Canadian Imperial Bank of Commerce reiterated an "outperform" rating on shares of Constellation Software in a report on Friday, January 16th. Six analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy".

Constellation Software Price Performance

The firm has a market capitalization of $36.69 billion, a P/E ratio of 74.69 and a beta of 1.02. The company has a debt-to-equity ratio of 0.90, a current ratio of 0.96 and a quick ratio of 0.94. The stock's fifty day simple moving average is $1,819.56 and its 200 day simple moving average is $2,218.67.

Constellation Software (OTCMKTS:CNSWF - Get Free Report) last announced its earnings results on Monday, March 9th. The company reported $24.64 EPS for the quarter, missing analysts' consensus estimates of $29.20 by ($4.56). The firm had revenue of $3.18 billion during the quarter, compared to the consensus estimate of $3.15 billion. Constellation Software had a return on equity of 48.18% and a net margin of 4.22%. On average, equities research analysts predict that Constellation Software Inc. will post 77.19 EPS 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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