Enghouse Systems (TSE:ENGH) Stock Price Crosses Below Fifty Day Moving Average - Here's What Happened

Key Points

• Stock slipped below its 50‑day moving average: Enghouse traded as low as C$17.80 and last at C$17.90, below its 50‑day MA of C$18.70, on volume of 172,667 shares.
• Analysts trimmed targets and sentiment is negative: UBS and RBC cut price targets (to C$20 and C$22), and MarketBeat shows a consensus rating of "Reduce" with a C$22.33 consensus target.
• High dividend and modest valuation: The company pays a C$1.20 annualized dividend (6.7% yield) with an ~83.6% payout ratio, reported quarterly EPS of C$0.39, and a P/E of 13.36 on a ~C$978M market cap.

Enghouse Systems Limited (TSE:ENGH - Get Free Report)'s share price passed below its fifty day moving average during trading on Wednesday . The stock has a fifty day moving average of C$18.70 and traded as low as C$17.80. Enghouse Systems shares last traded at C$17.90, with a volume of 172,667 shares trading hands.

Analyst Ratings Changes

A number of brokerages have weighed in on ENGH. UBS Group lowered their price target on Enghouse Systems from C$22.00 to C$20.00 in a research report on Monday, December 8th. Royal Bank Of Canada cut their price target on shares of Enghouse Systems from C$24.00 to C$22.00 and set a "sector perform" rating for the company in a report on Wednesday, December 17th. One research analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Reduce" and a consensus price target of C$22.33.

Enghouse Systems Trading Down 0.4%

The company has a quick ratio of 1.84, a current ratio of 1.71 and a debt-to-equity ratio of 1.83. The firm has a market capitalization of C$978.27 million, a price-to-earnings ratio of 13.36, a price-to-earnings-growth ratio of -4.19 and a beta of -0.25. The business's fifty day moving average is C$18.70 and its 200 day moving average is C$20.14.

Enghouse Systems (TSE:ENGH - Get Free Report) last released its earnings results on Monday, December 15th. The company reported C$0.39 earnings per share (EPS) for the quarter. The business had revenue of C$124.48 million for the quarter. Enghouse Systems had a return on equity of 12.17% and a net margin of 14.77%. Equities analysts predict that Enghouse Systems Limited will post 1.6991295 earnings per share for the current year.

Enghouse Systems Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, February 27th. Shareholders of record on Friday, February 27th were given a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a dividend yield of 6.7%. The ex-dividend date was Friday, February 13th. Enghouse Systems's dividend payout ratio is presently 83.58%.

About Enghouse Systems

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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