Fred Alger Management LLC Cuts Holdings in The Descartes Systems Group Inc. $DSGX

Key Points

• Fred Alger Management LLC has significantly reduced its stake in The Descartes Systems Group by 93.5%, selling 69,660 shares and now holding only 4,858 shares valued at approximately $490,000.
• Despite a 10% increase in year-over-year revenue to $178.98 million, the company reported an earnings per share of $0.43, missing analysts' expectations of $0.49.
• Analysts have mixed views on the stock, with a consensus target price of $123.60 and ratings ranging from "Strong Buy" to "Hold." Barclays recently lowered its price target from $118 to $108.

Fred Alger Management LLC lessened its position in shares of The Descartes Systems Group Inc. (NASDAQ:DSGX - Free Report) TSE: DSG by 93.5% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 4,858 shares of the technology company's stock after selling 69,660 shares during the quarter. Fred Alger Management LLC's holdings in The Descartes Systems Group were worth $490,000 as of its most recent SEC filing.

Several other hedge funds have also modified their holdings of the company. NBC Securities Inc. bought a new position in shares of The Descartes Systems Group during the 1st quarter valued at approximately $25,000. Cullen Frost Bankers Inc. purchased a new stake in The Descartes Systems Group during the first quarter valued at $49,000. Versant Capital Management Inc lifted its position in The Descartes Systems Group by 2,013.5% during the first quarter. Versant Capital Management Inc now owns 1,099 shares of the technology company's stock valued at $111,000 after purchasing an additional 1,047 shares during the last quarter. Intact Investment Management Inc. bought a new position in The Descartes Systems Group during the first quarter valued at $141,000. Finally, Vident Advisory LLC purchased a new position in shares of The Descartes Systems Group in the 1st quarter worth $220,000. 77.73% of the stock is owned by hedge funds and other institutional investors.

The Descartes Systems Group Stock Performance

DSGX traded down $0.70 during trading on Tuesday, hitting $101.86. 347,276 shares of the stock were exchanged, compared to its average volume of 474,599. The firm has a 50 day simple moving average of $102.85 and a 200 day simple moving average of $103.80. The firm has a market cap of $8.75 billion, a price-to-earnings ratio of 60.27 and a beta of 0.80. The Descartes Systems Group Inc. has a 1 year low of $92.00 and a 1 year high of $124.31.

The Descartes Systems Group (NASDAQ:DSGX - Get Free Report) TSE: DSG last posted its quarterly earnings results on Wednesday, September 3rd. The technology company reported $0.43 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.49 by ($0.06). The firm had revenue of $178.98 million for the quarter, compared to the consensus estimate of $176.51 million. The Descartes Systems Group had a return on equity of 10.41% and a net margin of 21.64%.The Descartes Systems Group's quarterly revenue was up 10.0% compared to the same quarter last year. During the same period in the previous year, the company posted $0.40 EPS. As a group, equities analysts anticipate that The Descartes Systems Group Inc. will post 1.64 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on DSGX. Zacks Research upgraded shares of The Descartes Systems Group from a "strong sell" rating to a "hold" rating in a research report on Tuesday, September 2nd. Wall Street Zen upgraded The Descartes Systems Group from a "sell" rating to a "hold" rating in a research report on Friday, September 5th. Barclays cut their price objective on shares of The Descartes Systems Group from $118.00 to $108.00 and set an "equal weight" rating on the stock in a research report on Thursday, June 5th. Morgan Stanley assumed coverage on shares of The Descartes Systems Group in a report on Monday, July 14th. They issued an "equal weight" rating and a $110.00 target price for the company. Finally, Royal Bank Of Canada cut their price target on shares of The Descartes Systems Group from $130.00 to $126.00 and set an "outperform" rating on the stock in a report on Thursday, June 5th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $123.60.

The Descartes Systems Group Profile

The Descartes Systems Group Inc provides cloud-based logistics and supply chain management solutions worldwide. Its Logistics Technology platform offers a range of modular, interoperable web and wireless logistics management solutions. The company provides a suite of solutions that include routing, mobile, and telematics; transportation management; ecommerce, shipping, and fulfillment; customs and regulatory compliance; global trade intelligence; broker and forwarder enterprise systems; and B2B messaging and connectivity services.