ePlus (NASDAQ:PLUS) Stock Crosses Above 200 Day Moving Average - Here's What Happened

Key Points

• ePlus shares rose 1.7% and moved above their 200-day moving average, trading as high as $89.53 after closing around $89.27. The stock’s 200-day average was $83.03.
• Analysts remain cautious on the stock, with recent downgrades leaving ePlus at a consensus “Reduce” rating. Recent calls included Weiss Ratings reaffirming Hold, while Zacks cut the stock to Strong Sell.
• The company recently beat quarterly earnings expectations, reporting $1.00 EPS versus $0.98 expected and revenue of $581.63 million versus $569.25 million estimated. ePlus also raised its quarterly dividend to $0.27 from $0.25.

ePlus inc. (NASDAQ:PLUS - Get Free Report)'s stock price passed above its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $83.03 and traded as high as $89.53. ePlus shares last traded at $89.27, with a volume of 179,522 shares.

Analysts Set New Price Targets

Several research firms have weighed in on PLUS. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of ePlus in a research note on Friday, July 10th. Zacks Research cut shares of ePlus from a "hold" rating to a "strong sell" rating in a research report on Wednesday, June 17th. Finally, Wall Street Zen downgraded ePlus from a "buy" rating to a "hold" rating in a research note on Saturday, March 28th. One equities research analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Reduce".

ePlus Stock Up 1.7%

The business has a 50-day moving average price of $83.72 and a two-hundred day moving average price of $83.03. The company has a market capitalization of $2.49 billion, a price-to-earnings ratio of 18.44, a price-to-earnings-growth ratio of 1.18 and a beta of 1.02.

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

ePlus Increases Dividend

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

Insider Activity

In other news, COO Darren S. Raiguel sold 1,000 shares of the business's stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $89.95, for a total transaction of $89,950.00. Following the completion of the sale, the chief operating officer directly owned 55,748 shares of the company's stock, valued at $5,014,532.60. The trade was a 1.76% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Insiders have sold 1,289 shares of company stock worth $115,757 in the last ninety days. 1.93% of the stock is owned by company insiders.

Hedge Funds Weigh In On ePlus

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

ePlus Company Profile

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.

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