Constellation Software (TSE:CSU) Reaches New 52-Week Low - Time to Sell?

Key Points

• Constellation hit a new 52-week low, trading as low as C$2,791.01 (down ~1.9%) and sitting well below its 50-day (C$3,274) and 200-day (C$3,944) moving averages.
• Analysts remain mixed: the consensus is a Moderate Buy with an average target of C$4,781.14, but several major banks have recently cut ratings and price targets.
• Key fundamentals raise caution — market cap C$59.2B, very high P/E (86.1) and debt-to-equity (169.8), low liquidity ratios, a tiny 0.1% dividend yield, and a recent insider sale.

Constellation Software Inc. (TSE:CSU - Get Free Report)'s share price reached a new 52-week low during trading on Tuesday . The company traded as low as C$2,791.01 and last traded at C$2,791.01, with a volume of 28320 shares changing hands. The stock had previously closed at C$2,844.99.

Analysts Set New Price Targets

Several analysts recently issued reports on the stock. National Bankshares lowered shares of Constellation Software from an "outperform" rating to a "sector perform" rating and cut their target price for the company from C$5,500.00 to C$4,500.00 in a research report on Friday, September 26th. BMO Capital Markets reduced their price objective on Constellation Software from C$5,400.00 to C$4,600.00 in a research note on Monday, November 10th. National Bank Financial cut Constellation Software from a "strong-buy" rating to a "hold" rating in a report on Thursday, September 25th. Desjardins raised Constellation Software to a "moderate buy" rating in a report on Thursday, October 30th. Finally, Royal Bank Of Canada set a C$5,600.00 price target on Constellation Software and gave the stock an "outperform" rating in a research report on Wednesday, January 7th. Five investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of C$4,781.14.

Constellation Software Trading Down 1.9%

The firm has a market cap of C$59.15 billion, a P/E ratio of 86.14, a P/E/G ratio of 2.95 and a beta of 0.43. The stock has a 50 day simple moving average of C$3,274.32 and a 200-day simple moving average of C$3,944.06. The company has a current ratio of 0.93, a quick ratio of 0.55 and a debt-to-equity ratio of 169.83.

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

Constellation Software Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, January 12th. Shareholders of record on Monday, January 12th were paid a dividend of $1.00 per share. This represents a $4.00 annualized dividend and a yield of 0.1%. The ex-dividend date was Friday, December 19th. Constellation Software's payout ratio is presently 12.35%.

Insider Transactions at Constellation Software

In related news, insider Barry Alan Symons sold 2,500 shares of the firm's stock in a transaction on 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 of the company's stock, valued at C$188,342,250. This trade represents a 4.20% decrease in their ownership of the stock. Corporate insiders own 5.69% of the company's stock.

About Constellation Software

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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