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

Key Points

• Constellation's share price passed below its 200-day moving average of C$3,107.06, trading as low as C$2,372 and last at C$2,378.34 on a volume of 44,284 shares.
• Analysts maintain a consensus rating of "Moderate Buy" with an average price target of C$4,195, despite several recent target cuts and a mix of five Buy and two Hold ratings.
• The stock shows a high valuation and leverage—P/E of 98.48, market cap C$50.4B and debt-to-equity of 161.87—while paying a quarterly dividend of $1.00 (annualized C$4.00, yield 0.2%, payout ratio 16.56%).

Constellation Software Inc. (TSE:CSU - Get Free Report)'s share price passed below its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of C$3,107.06 and traded as low as C$2,372.00. Constellation Software shares last traded at C$2,378.34, with a volume of 44,284 shares changing hands.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on the stock. TD Securities boosted their price target on shares of Constellation Software from C$4,000.00 to C$4,100.00 and gave the company a "buy" rating in a report on Tuesday, March 10th. Raymond James Financial lowered their price target on shares of Constellation Software from C$4,300.00 to C$3,700.00 and set a "market perform" rating on the stock in a report on Tuesday, March 10th. UBS Group dropped their price objective on Constellation Software from C$4,500.00 to C$4,250.00 in a report on Tuesday, March 31st. BMO Capital Markets dropped their price objective on Constellation Software from C$4,600.00 to C$4,200.00 in a report on Tuesday, March 10th. Finally, Royal Bank Of Canada dropped their price objective on Constellation Software from C$5,600.00 to C$4,800.00 and set an "outperform" rating on the stock in a report on Monday, January 26th. Five equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of C$4,195.00.

Constellation Software Stock Down 2.6%

The business has a fifty day moving average of C$2,505.43 and a 200 day moving average of C$3,107.06. The stock has a market cap of C$50.40 billion, a price-to-earnings ratio of 98.48, a P/E/G ratio of 2.95 and a beta of 0.39. The company has a debt-to-equity ratio of 161.87, a current ratio of 0.96 and a quick ratio of 0.55.

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

Constellation Software Announces Dividend

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