Royal Bank of Canada Buys 125,597 Shares of The Descartes Systems Group Inc. $DSGX

Key Points

• The Royal Bank of Canada increased its stake in The Descartes Systems Group Inc. by 22.1%, acquiring an additional 125,597 shares, bringing its total holdings to 694,236 shares valued at approximately $70 million.
• Despite a revenue increase of 10% year-over-year, The Descartes Systems Group reported earnings per share of $0.43, falling short of the analysts' consensus estimate of $0.49.
• Institutional investors now own 77.73% of The Descartes Systems Group, with other significant stakeholders including Mackenzie Financial Corp and Price T Rowe Associates significantly increasing their positions in recent quarters.

Royal Bank of Canada boosted its holdings in The Descartes Systems Group Inc. (NASDAQ:DSGX - Free Report) TSE: DSG by 22.1% during the first quarter, according to the company in its most recent disclosure with the SEC. The firm owned 694,236 shares of the technology company's stock after purchasing an additional 125,597 shares during the quarter. Royal Bank of Canada owned about 0.81% of The Descartes Systems Group worth $70,001,000 at the end of the most recent quarter.

Several other large investors have also recently made changes to their positions in DSGX. Mackenzie Financial Corp grew its stake in shares of The Descartes Systems Group by 130.4% in the 4th quarter. Mackenzie Financial Corp now owns 4,947,789 shares of the technology company's stock worth $561,827,000 after buying an additional 2,800,492 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its holdings in The Descartes Systems Group by 15.1% in the first quarter. Price T Rowe Associates Inc. MD now owns 7,134,467 shares of the technology company's stock worth $719,370,000 after acquiring an additional 936,718 shares in the last quarter. Praesidium Investment Management Company LLC purchased a new stake in shares of The Descartes Systems Group in the fourth quarter worth $54,724,000. Nuveen LLC purchased a new stake in shares of The Descartes Systems Group in the first quarter worth $21,074,000. Finally, Fiera Capital Corp increased its holdings in shares of The Descartes Systems Group by 8.0% during the first quarter. Fiera Capital Corp now owns 2,745,848 shares of the technology company's stock valued at $276,705,000 after acquiring an additional 202,973 shares in the last quarter. 77.73% of the stock is currently owned by hedge funds and other institutional investors.

The Descartes Systems Group Stock Performance

Shares of NASDAQ DSGX traded down $1.07 during midday trading on Wednesday, hitting $105.88. 304,900 shares of the company's stock traded hands, compared to its average volume of 554,914. The firm has a fifty day moving average of $102.76 and a 200 day moving average of $104.05. The Descartes Systems Group Inc. has a 1 year low of $92.00 and a 1 year high of $124.31. The stock has a market capitalization of $9.10 billion, a price-to-earnings ratio of 62.65 and a beta of 0.80.

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

Analysts Set New Price Targets

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

About The Descartes Systems Group

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.