Constellation Software (TSE:CSU) Stock Crosses Below 200 Day Moving Average - Time to Sell?

Key Points

• Technical signal: Constellation Software shares dropped below their 200-day moving average of C$3,048.75, trading as low as C$2,540.56 and last at C$2,631.56 on volume of 113,397, which may indicate near-term weakness.
• Analyst view: The consensus is a "Moderate Buy" (five Buy, two Hold) with an average target of C$4,195, though several firms recently trimmed price targets while others raised or maintained theirs.
• Financial profile: The stock trades at a high valuation (P/E ~108.97), carries substantial leverage (debt-to-equity 161.87), reported quarterly EPS of C$7.12 and pays a small yield (~0.2% annualized).

Constellation Software Inc. (TSE:CSU - Get Free Report) shares crossed below its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of C$3,048.75 and traded as low as C$2,540.56. Constellation Software shares last traded at C$2,631.56, with a volume of 113,397 shares.

Analyst Ratings Changes

Several research analysts recently commented on CSU shares. UBS Group cut their price objective on shares of Constellation Software from C$4,500.00 to C$4,250.00 in a report on Tuesday, March 31st. TD Securities raised their price objective on shares of Constellation Software from C$4,000.00 to C$4,100.00 and gave the stock a "buy" rating in a report on Tuesday, March 10th. National Bank Financial raised their price objective on shares of Constellation Software from C$3,200.00 to C$3,400.00 and gave the stock a "sector perform" rating in a report on Tuesday, March 10th. Raymond James Financial cut their price objective on shares of Constellation Software from C$4,300.00 to C$3,700.00 and set a "market perform" rating for the company in a report on Tuesday, March 10th. Finally, BMO Capital Markets cut their price objective on shares of Constellation Software from C$4,600.00 to C$4,200.00 in a report on Tuesday, March 10th. Five equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of C$4,195.00.

Constellation Software Stock Performance

The company's fifty day simple moving average is C$2,499.96 and its 200 day simple moving average is C$3,048.75. The company has a current ratio of 0.96, a quick ratio of 0.55 and a debt-to-equity ratio of 161.87. The stock has a market capitalization of C$55.77 billion, a P/E ratio of 108.97, a P/E/G ratio of 2.95 and a beta of 0.39.

Constellation Software (TSE:CSU - Get Free Report) last announced its quarterly earnings results on Monday, March 9th. The company reported C$7.12 EPS for the quarter. Constellation Software had a net margin of 4.40% and a return on equity of 15.35%. The firm had revenue of C$4.19 billion during the quarter. As a group, sell-side analysts forecast that Constellation Software Inc. will post 55.4616354 earnings per share for the current fiscal year.

Constellation Software Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Wednesday, April 15th were issued a $1.00 dividend. This represents a $4.00 annualized dividend and a yield of 0.2%. The ex-dividend date of this dividend was Friday, March 27th. Constellation Software's dividend payout ratio (DPR) is presently 16.56%.

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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