Constellation Software (TSE:CSU) Stock Crosses Below 200-Day Moving Average - Here's Why

Key Points

• Constellation Software shares crossed below their 200-day moving average, trading as low as C$2,485.02 and last at C$2,537.90 versus the 200-day MA of C$3,262.71.
• Analysts have trimmed price targets (e.g., RBC to C$4,800, Raymond James to C$3,700) but the consensus rating remains a Moderate Buy with a consensus target of C$4,187.14.
• The company reported quarterly EPS of C$7.12 on C$4.19 billion in revenue and announced a C$1.00 quarterly dividend (C$4.00 annualized, 0.2% yield); valuation metrics show a high P/E of 105.09 and a debt-to-equity ratio of 161.87.

Constellation Software Inc. (TSE:CSU - Get Free Report)'s stock price crossed below its two hundred day moving average during trading on Monday . The stock has a two hundred day moving average of C$3,262.71 and traded as low as C$2,485.02. Constellation Software shares last traded at C$2,537.90, with a volume of 72,334 shares changing hands.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on the stock. Royal Bank Of Canada reduced their price target on shares of Constellation Software from C$5,600.00 to C$4,800.00 and set an "outperform" rating for the company in a research report on Monday, January 26th. Canadian Imperial Bank of Commerce dropped their price objective on Constellation Software from C$4,688.00 to C$4,610.00 and set an "outperform" rating for the company in a research note on Tuesday, March 10th. Raymond James Financial reduced their target price on Constellation Software from C$4,300.00 to C$3,700.00 and set a "market perform" rating for the company in a research report on Tuesday, March 10th. BMO Capital Markets decreased their target price on Constellation Software from C$4,600.00 to C$4,200.00 in a research note on Tuesday, March 10th. Finally, TD Securities upped their target price on Constellation Software from C$4,000.00 to C$4,100.00 and gave the stock a "buy" rating in a research note on Tuesday, March 10th. Five research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of C$4,187.14.

Constellation Software Trading Up 1.5%

The company has a quick ratio of 0.55, a current ratio of 0.96 and a debt-to-equity ratio of 161.87. The firm has a market capitalization of C$53.78 billion, a P/E ratio of 105.09, a price-to-earnings-growth ratio of 2.95 and a beta of 0.33. The firm's 50-day simple moving average is C$2,596.48 and its 200-day simple moving average is C$3,262.71.

Constellation Software (TSE:CSU - Get Free Report) last issued its quarterly earnings results on Monday, March 9th. The company reported C$7.12 EPS for the quarter. The firm had revenue of C$4.19 billion for the quarter. Constellation Software had a net margin of 4.40% and a return on equity of 15.35%. Analysts anticipate that Constellation Software Inc. will post 55.4616354 EPS for the current year.

Constellation Software Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Wednesday, April 15th will be paid a $1.00 dividend. This represents a $4.00 dividend on an annualized basis and a yield of 0.2%. The ex-dividend date of this dividend is Friday, March 27th. Constellation Software's dividend payout ratio is currently 16.56%.

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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