ePlus (NASDAQ:PLUS) Reaches New 12-Month High - What's Next?

Key Points

• ePlus shares reached a new 52-week high, trading as high as $95.75 and last at $93.66, giving the company a market capitalization of about $2.45 billion.
• Recent quarterly results exceeded expectations, with earnings of $1.00 per share versus $0.98 expected and revenue of $581.63 million versus $569.25 million. The company also raised its quarterly dividend to $0.27, or $1.08 annually, for a 1.2% yield.
• Despite the stock’s momentum, analyst sentiment remains cautious: ratings include Hold and Strong Sell, resulting in a consensus “Reduce” rating. Insiders sold 6,107 shares worth roughly $572,000 in the past quarter, while institutional investors own 93.8% of the stock.

ePlus inc. (NASDAQ:PLUS - Get Free Report)'s stock price reached a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $95.75 and last traded at $93.66, with a volume of 290877 shares trading hands. The stock had previously closed at $92.41.

Analyst Ratings Changes

Several brokerages have recently commented on PLUS. Weiss Ratings reiterated a "hold (c+)" rating on shares of ePlus in a research note on Friday, July 10th. Zacks Research downgraded ePlus from a "hold" rating to a "strong sell" rating in a report on Wednesday, June 17th. One analyst has rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Reduce".

ePlus Price Performance

The company's 50-day simple moving average is $85.12 and its 200-day simple moving average is $83.23. The stock has a market capitalization of $2.45 billion, a price-to-earnings ratio of 19.35, a P/E/G ratio of 1.24 and a beta of 1.02.

ePlus (NASDAQ:PLUS - Get Free Report) last posted its earnings results on Thursday, May 28th. The software maker reported $1.00 EPS for the quarter, beating the consensus estimate of $0.98 by $0.02. The company had revenue of $581.63 million for the quarter, compared to the consensus estimate of $569.25 million. ePlus had a return on equity of 11.36% and a net margin of 5.24%. Research analysts expect that ePlus inc. will post 4.66 earnings per share for the current year.

ePlus Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Wednesday, June 17th were issued a $0.27 dividend. The ex-dividend date of this dividend was Wednesday, June 17th. This represents a $1.08 dividend on an annualized basis and a yield of 1.2%. This is a positive change from ePlus's previous quarterly dividend of $0.25. ePlus's payout ratio is currently 22.31%.

Insider Buying and Selling at ePlus

In other news, COO Darren S. Raiguel sold 1,935 shares of ePlus stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $94.06, for a total transaction of $182,006.10. Following the completion of the sale, the chief operating officer owned 69,236 shares of the company's stock, valued at approximately $6,512,338.16. This trade represents a 2.72% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Elaine D. Marion sold 2,818 shares of the business's stock in a transaction dated Wednesday, July 29th. The shares were sold at an average price of $95.22, for a total transaction of $268,329.96. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 6,107 shares of company stock worth $572,145 in the last quarter. Company insiders own 1.93% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the business. Handelsbanken Fonder AB raised its position in shares of ePlus by 4.5% in the second quarter. Handelsbanken Fonder AB now owns 6,944 shares of the software maker's stock valued at $578,000 after buying an additional 300 shares in the last quarter. Revolve Wealth Partners LLC bought a new position in ePlus during the 2nd quarter worth $206,000. Pacer Advisors Inc. increased its stake in ePlus by 27.3% during the 1st quarter. Pacer Advisors Inc. now owns 3,292 shares of the software maker's stock worth $248,000 after acquiring an additional 705 shares during the period. Empowered Funds LLC raised its holdings in ePlus by 8.0% in the 1st quarter. Empowered Funds LLC now owns 11,113 shares of the software maker's stock valued at $836,000 after acquiring an additional 826 shares in the last quarter. Finally, Segall Bryant & Hamill LLC bought a new stake in shares of ePlus during the 1st quarter valued at $1,179,000. Institutional investors and hedge funds own 93.80% of the company's stock.

About ePlus

ePlus Inc NASDAQ: PLUS is a technology solutions provider that helps enterprises and public-sector organizations maximize the value of their information technology investments. The company specializes in designing, implementing and managing complex IT infrastructures, with a focus on security, cloud computing, data center modernization and unified communications. By combining consulting services with software license management and hardware procurement, ePlus delivers end-to-end solutions that align with its clients' strategic objectives.

The company's offerings include cybersecurity assessments and managed security services, hybrid and public cloud deployments, network architecture and optimization, and collaboration platforms.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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