Information Services Group (NASDAQ:III) Shares Pass Below 50 Day Moving Average - Here's Why

Key Points

• Technical weakness: Shares of Information Services Group (NASDAQ:III) fell below their 50‑day moving average, last trading at $4.07 versus the 50‑day of $4.21 and the 200‑day of $5.11, on volume of 133,580 shares.
• Analyst view is mixed: The consensus rating is "Hold" with an average target price of $5.50 (one Buy and two Hold ratings), though recent notes include Barrington's "Outperform" ($5.50) and Wall Street Zen's upgrade to "Strong‑Buy."
• Income and fundamentals: ISG pays a $0.045 quarterly dividend (annual $0.18) for a 4.4% yield but a 100% payout ratio; the company posted $0.08 EPS last quarter (meeting estimates), has a market cap of ~$194M and a P/E of 22.6.

Information Services Group, Inc. (NASDAQ:III - Get Free Report) shares crossed below its 50 day moving average during trading on Monday . The stock has a 50 day moving average of $4.21 and traded as low as $4.05. Information Services Group shares last traded at $4.07, with a volume of 133,580 shares.

Wall Street Analysts Forecast Growth

III has been the subject of a number of recent research reports. Barrington Research reissued an "outperform" rating and set a $5.50 price target on shares of Information Services Group in a research note on Thursday, April 16th. Wall Street Zen raised shares of Information Services Group from a "buy" rating to a "strong-buy" rating in a research note on Saturday, April 18th. Finally, Weiss Ratings reissued a "hold (c+)" rating on shares of Information Services Group in a research note on Wednesday, January 28th. One investment analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $5.50.

Information Services Group Price Performance

The company has a debt-to-equity ratio of 0.63, a current ratio of 2.34 and a quick ratio of 2.34. The stock has a market cap of $194.02 million, a P/E ratio of 22.61, a P/E/G ratio of 0.90 and a beta of 1.09. The company's 50 day simple moving average is $4.21 and its 200 day simple moving average is $5.11.

Information Services Group (NASDAQ:III - Get Free Report) last issued its earnings results on Thursday, March 5th. The business services provider reported $0.08 EPS for the quarter, meeting the consensus estimate of $0.08. Information Services Group had a net margin of 3.82% and a return on equity of 11.49%. The firm had revenue of $61.21 million during the quarter, compared to the consensus estimate of $61.11 million. As a group, equities analysts forecast that Information Services Group, Inc. will post 0.27 earnings per share for the current year.

Information Services Group Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, March 26th. Shareholders of record on Friday, March 20th were paid a $0.045 dividend. This represents a $0.18 annualized dividend and a yield of 4.4%. The ex-dividend date of this dividend was Friday, March 20th. Information Services Group's dividend payout ratio is presently 100.00%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in III. Hillsdale Investment Management Inc. boosted its holdings in shares of Information Services Group by 603.2% in the third quarter. Hillsdale Investment Management Inc. now owns 480,318 shares of the business services provider's stock valued at $2,762,000 after buying an additional 412,018 shares during the period. Essex Investment Management Co. LLC acquired a new position in shares of Information Services Group in the fourth quarter valued at approximately $2,177,000. Potomac Capital Management Inc. acquired a new position in shares of Information Services Group in the fourth quarter valued at approximately $1,687,000. O Shaughnessy Asset Management LLC boosted its holdings in shares of Information Services Group by 51.6% in the fourth quarter. O Shaughnessy Asset Management LLC now owns 771,444 shares of the business services provider's stock valued at $4,459,000 after buying an additional 262,509 shares during the period. Finally, Ritholtz Wealth Management boosted its holdings in shares of Information Services Group by 68.8% in the fourth quarter. Ritholtz Wealth Management now owns 539,232 shares of the business services provider's stock valued at $3,117,000 after buying an additional 219,723 shares during the period. Institutional investors and hedge funds own 73.10% of the company's stock.

Information Services Group Company Profile

Information Services Group, Inc (ISG) is a leading global technology research and advisory firm specializing in digital transformation, sourcing strategies and technology-driven business operations. Headquartered in Stamford, Connecticut, the company leverages deep market insights and data analytics to help clients optimize cost structures, accelerate growth and navigate complex technology landscapes. Since its founding in 2006, ISG has cultivated expertise across industries including financial services, healthcare, manufacturing and the public sector.

ISG's core offerings include sourcing advisory, managed governance, market intelligence and research services.

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