Baird Financial Group Inc. Sells 31,526 Shares of The Descartes Systems Group Inc. $DSGX

Key Points

• Baird Financial Group reduced its DSGX position by 15.8%, selling 31,526 shares during the second quarter and retaining 168,301 shares valued at approximately $11.7 million.
• Institutional ownership remains substantial at 77.73%, with several firms—including Amundi, Waverly Advisors and Nykredit—initiating or expanding positions during the quarter.
• Descartes reported strong quarterly results, including 12% year-over-year revenue growth to $201.1 million and a 32% increase in net income to $50 million. Analysts maintain a generally positive outlook, with an average price target of $102.36 versus a recent share price near $76.

Baird Financial Group Inc. lowered its position in The Descartes Systems Group Inc. (NASDAQ:DSGX - Free Report) TSE: DSG by 15.8% in the 2nd quarter, according to the company in its most recent filing with the SEC. The fund owned 168,301 shares of the technology company's stock after selling 31,526 shares during the quarter. Baird Financial Group Inc. owned about 0.20% of The Descartes Systems Group worth $11,653,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in DSGX. Waverly Advisors LLC grew its stake in The Descartes Systems Group by 46.6% in the 2nd quarter. Waverly Advisors LLC now owns 80,543 shares of the technology company's stock valued at $5,577,000 after buying an additional 25,595 shares in the last quarter. Nykredit A S bought a new position in shares of The Descartes Systems Group in the second quarter worth $1,869,000. Corient Private Wealth LP bought a new position in shares of The Descartes Systems Group in the second quarter worth $377,000. Amundi purchased a new position in shares of The Descartes Systems Group in the second quarter valued at $9,609,000. Finally, Wellington Grp LLC purchased a new position in shares of The Descartes Systems Group in the second quarter valued at $142,000. 77.73% of the stock is currently owned by institutional investors.

More The Descartes Systems Group News

Here are the key news stories impacting The Descartes Systems Group this week:

• Positive Sentiment: Record quarterly performance: Revenue increased 12% year over year to $201.1 million, while operating income rose 36% to $65.5 million and net income climbed 32% to $50.0 million. Diluted EPS increased to $0.57 from $0.43, meeting consensus, and adjusted EBITDA grew 18% to $94.4 million, with the margin expanding to 47%. Descartes fiscal 2027 second-quarter results
• Positive Sentiment: Strong recurring revenue and cash flow: Services revenue, which represented 94% of total revenue, grew 13%. Operating cash flow rose 28% to $81.3 million, and the company ended July with $401.1 million in cash. These figures support continued investment, acquisitions and share repurchases.
• Positive Sentiment: Higher analyst target: Scotiabank raised its DSGX price target from $95 to $98 and maintained a “sector outperform” rating, implying roughly 29% potential upside from recently cited levels. Benzinga analyst coverage
• Positive Sentiment: Acquisition strategy broadens its platform: Recent purchases of Transportation Applied Intelligence Software and Extensiv, totaling approximately $219.2 million, expand Descartes’ transportation-management, warehouse-management and fulfillment capabilities. Its Global Logistics Network also creates customer switching costs that can support retention and pricing power. Descartes outlook and valuation
• Neutral Sentiment: Key execution risk: Future growth depends partly on successfully integrating acquisitions and finding additional attractive targets. Acquisition-related costs may also recur, making adjusted EBITDA less representative of fully loaded operating expenses.
• Neutral Sentiment: Short-interest data: Reported short interest was zero, but the accompanying change and days-to-cover figures appear unreliable, limiting their usefulness as a trading signal.

The Descartes Systems Group Price Performance

Shares of The Descartes Systems Group stock opened at $76.04 on Monday. The Descartes Systems Group Inc. has a 1 year low of $62.56 and a 1 year high of $107.52. The firm has a market cap of $6.51 billion, a PE ratio of 35.53 and a beta of 0.62. The company has a 50 day simple moving average of $75.62 and a two-hundred day simple moving average of $72.62.

The Descartes Systems Group (NASDAQ:DSGX - Get Free Report) TSE: DSG last issued its quarterly earnings results on Thursday, September 10th. The technology company reported $0.57 EPS for the quarter, hitting analysts' consensus estimates of $0.57. The Descartes Systems Group had a net margin of 24.25% and a return on equity of 11.75%. The firm had revenue of $198.12 million for the quarter, compared to analyst estimates of $197.54 million. During the same quarter in the prior year, the firm earned $0.43 EPS. The business's revenue for the quarter was up 11.8% compared to the same quarter last year. As a group, research analysts anticipate that The Descartes Systems Group Inc. will post 2.38 earnings per share for the current year.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on DSGX. Scotia lifted their target price on The Descartes Systems Group from $95.00 to $98.00 and gave the company a "sector outperform" rating in a report on Friday. Weiss Ratings upgraded shares of The Descartes Systems Group from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Tuesday, July 21st. Royal Bank Of Canada set a $125.00 price objective on shares of The Descartes Systems Group and gave the company an "outperform" rating in a research note on Friday, September 4th. Scotiabank upped their target price on shares of The Descartes Systems Group from $95.00 to $98.00 and gave the stock a "sector outperform" rating in a report on Friday. Finally, Canadian Imperial Bank of Commerce increased their target price on shares of The Descartes Systems Group from $116.00 to $118.00 and gave the stock an "outperformer" rating in a research note on Thursday, June 4th. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, The Descartes Systems Group presently has an average rating of "Moderate Buy" and an average price target of $102.36.

The Descartes Systems Group Company Profile

The Descartes Systems Group Inc is a Canadian technology company that provides cloud-based logistics and supply chain management software. Its platform helps businesses manage the movement of goods, shipments, vehicles and trade-related information across complex supply chains.

The company's offerings include transportation management, route planning and optimization, shipment tracking, telematics, freight matching, customs and regulatory compliance, logistics messaging, and electronic connectivity among shippers, carriers, brokers, manufacturers and other supply chain participants.

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