Constellation Software (TSE:CSU) Reaches New 12-Month Low - Should You Sell?

Key Points

• 52-week low: Constellation's shares hit a new 12-month low, trading as low as C$2,575 and last at C$2,586 with roughly 39,294 shares changing hands.
• Analyst view mixed but positive on average: Several firms cut price targets recently, yet the consensus rating is "Moderate Buy" with an average target of C$4,481—well above the current price.
• Key financials/risks: The company shows high leverage (debt-to-equity 169.83) and a rich valuation (P/E 80.74) alongside a low dividend yield (0.2%), despite recent quarterly EPS of C$9.89 and ROE of 27.34%.

Constellation Software Inc. (TSE:CSU - Get Free Report)'s share price reached a new 52-week low on Wednesday . The company traded as low as C$2,575.00 and last traded at C$2,586.06, with a volume of 39294 shares traded. The stock had previously closed at C$2,651.30.

Wall Street Analyst Weigh In

Several research firms recently commented on CSU. Royal Bank Of Canada lowered their target price on Constellation Software from C$5,600.00 to C$4,800.00 and set an "outperform" rating for the company in a research note on Monday. National Bankshares lowered their price objective on Constellation Software from C$4,500.00 to C$3,200.00 and set a "sector perform" rating for the company in a research report on Thursday, January 22nd. Desjardins raised shares of Constellation Software to a "moderate buy" rating in a research report on Thursday, October 30th. Raymond James Financial decreased their price objective on shares of Constellation Software from C$5,250.00 to C$4,300.00 in a research report on Monday, November 10th. Finally, TD Securities dropped their target price on Constellation Software from C$5,700.00 to C$5,300.00 in a report on Monday, November 10th. Five analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, Constellation Software has an average rating of "Moderate Buy" and a consensus target price of C$4,481.14.

Constellation Software Stock Down 1.3%

The company has a debt-to-equity ratio of 169.83, a quick ratio of 0.55 and a current ratio of 0.93. The firm has a market capitalization of C$55.44 billion, a price-to-earnings ratio of 80.74, a PEG ratio of 2.95 and a beta of 0.43. The firm has a fifty day moving average price of C$3,206.59 and a 200 day moving average price of C$3,849.38.

Constellation Software (TSE:CSU - Get Free Report) last released its quarterly earnings results on Friday, November 7th. The company reported C$9.89 earnings per share for the quarter. The business had revenue of C$4.10 billion for the quarter. Constellation Software had a return on equity of 27.34% and a net margin of 6.57%. As a group, sell-side analysts expect that Constellation Software Inc. will post 55.4616354 EPS for the current fiscal year.

Constellation Software Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, January 12th. Investors of record on Monday, January 12th were given a $1.00 dividend. The ex-dividend date was Friday, December 19th. This represents a $4.00 annualized dividend and a dividend yield of 0.2%. Constellation Software's payout ratio is currently 12.35%.

Insiders Place Their Bets

In other Constellation Software news, insider Barry Alan Symons sold 2,500 shares of Constellation Software stock in a transaction dated Monday, November 17th. The shares were sold at an average price of C$3,304.25, for a total transaction of C$8,260,625.00. Following the completion of the transaction, the insider owned 57,000 shares in the company, valued at approximately C$188,342,250. The trade was a 4.20% decrease in their ownership of the stock. Company insiders own 5.69% of the company's stock.

Constellation Software Company Profile

Constellation Software is an international provider of market-leading software and services to a number of industries. Our mission is to acquire, manage and build market-leading software businesses that develop specialized, mission-critical software solutions to address the specific needs of our particular industries. Our company was founded in 1995 to assemble a portfolio of vertical market software companies that have the potential to be leaders in their particular market. Since then, we have grown rapidly through a combination of acquisitions and organic growth, and established a strong constellation of companies with a large, diverse customer base.

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