Enghouse Systems (TSE:ENGH) Shares Up 3.3% - What's Next?

Key Points

• Enghouse Systems shares rose 3.3% in Friday trading, reaching an intraday high of C$16.17 before last trading at C$16.11.
• Analysts have trimmed their price targets on the stock, with RBC, CIBC, and TD all lowering estimates and maintaining Hold/Neutral-type ratings; the consensus target is C$17.60.
• The company recently raised its quarterly dividend to C$0.31 per share from C$0.30, implying an annualized yield of about 7.7%.

Enghouse Systems Limited (TSE:ENGH - Get Free Report) was up 3.3% during mid-day trading on Friday . The company traded as high as C$16.17 and last traded at C$16.11. 160,503 shares changed hands during mid-day trading, a decline of 36% from the average daily volume of 250,939 shares. The stock had previously closed at C$15.60.

Analysts Set New Price Targets

Several research analysts have recently weighed in on the company. Royal Bank Of Canada lowered their price objective on Enghouse Systems from C$20.00 to C$18.00 and set a "sector perform" rating for the company in a research report on Thursday, June 11th. Canadian Imperial Bank of Commerce lowered their target price on Enghouse Systems from C$18.00 to C$17.00 and set a "neutral" rating for the company in a report on Thursday, June 11th. Finally, TD dropped their price target on Enghouse Systems from C$17.00 to C$16.00 and set a "hold" rating on the stock in a research note on Thursday, June 11th. Four research analysts have rated the stock with a Hold rating, According to MarketBeat.com, Enghouse Systems has an average rating of "Hold" and a consensus price target of C$17.60.

Enghouse Systems Stock Up 3.3%

The stock has a market cap of C$875.92 million, a price-to-earnings ratio of 12.20, a price-to-earnings-growth ratio of -4.19 and a beta of 0.13. The firm's fifty day moving average price is C$16.54 and its two-hundred day moving average price is C$17.23. The company has a debt-to-equity ratio of 1.51, a current ratio of 1.77 and a quick ratio of 1.84.

Enghouse Systems (TSE:ENGH - Get Free Report) last issued its earnings results on Tuesday, June 9th. The company reported C$0.30 EPS for the quarter. Enghouse Systems had a return on equity of 11.97% and a net margin of 14.88%.The company had revenue of C$114.28 million during the quarter. Sell-side analysts forecast that Enghouse Systems Limited will post 1.6991295 earnings per share for the current fiscal year.

Enghouse Systems Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, May 29th. Stockholders of record on Friday, May 29th were issued a dividend of $0.31 per share. This is a positive change from Enghouse Systems's previous quarterly dividend of $0.30. This represents a $1.24 annualized dividend and a dividend yield of 7.7%. The ex-dividend date was Friday, May 15th. Enghouse Systems's dividend payout ratio is presently 90.91%.

Enghouse Systems Company Profile

Enghouse Systems Limited is a Canadian publicly traded company TSX: ENGH that provides mission-critical vertically focused enterprise software solutions. Our core technologies are used for contact centers, video communications, virtual healthcare, education, telecommunications, networks, IPTV, public safety and transit. The Company's two-pronged strategy to grow earnings focuses on both organic growth and acquisitions, which, to date, have been funded through net cash provided by operating activities as the Company has no external debt financing.

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