Insight Enterprises (NASDAQ:NSIT) Reaches New 1-Year Low After Earnings Miss

Key Points

• Insight Enterprises stock reached a new 52-week low of $118.30 after reporting quarterly earnings that fell short of analyst expectations, with a net income margin of 2.26% and revenue declining 3.3% year-over-year.
• The company's reported EPS of $2.45 missed the consensus estimate of $2.49 by $0.04, contributing to the significant drop in stock price.
• Equities analysts have varied opinions, with Barrington Research maintaining an "outperform" rating and a price target of $164, while JPMorgan increased its price objective to $165 with a "neutral" rating.

Insight Enterprises, Inc. (NASDAQ:NSIT - Get Free Report) shares hit a new 52-week low during mid-day trading on Friday following a weaker than expected earnings announcement. The stock traded as low as $118.30 and last traded at $118.58, with a volume of 1080845 shares traded. The stock had previously closed at $144.59.

The software maker reported $2.45 earnings per share for the quarter, missing the consensus estimate of $2.49 by ($0.04). Insight Enterprises had a net margin of 1.79% and a return on equity of 18.68%. The firm had revenue of $2.09 billion during the quarter, compared to analysts' expectations of $2.15 billion. During the same period in the previous year, the firm posted $2.46 earnings per share. The firm's revenue for the quarter was down 3.3% on a year-over-year basis.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on the company. Barrington Research reissued an "outperform" rating and issued a $164.00 target price on shares of Insight Enterprises in a report on Monday, July 21st. JPMorgan Chase & Co. upped their price objective on Insight Enterprises from $152.00 to $165.00 and gave the company a "neutral" rating in a research note on Thursday, July 17th.

Institutional Trading of Insight Enterprises

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Bessemer Group Inc. raised its stake in Insight Enterprises by 79.2% during the 1st quarter. Bessemer Group Inc. now owns 190 shares of the software maker's stock valued at $29,000 after acquiring an additional 84 shares during the last quarter. Janney Montgomery Scott LLC acquired a new position in Insight Enterprises during the 1st quarter worth approximately $952,000. WCM Investment Management LLC increased its position in Insight Enterprises by 60.9% during the 1st quarter. WCM Investment Management LLC now owns 114,047 shares of the software maker's stock worth $17,406,000 after purchasing an additional 43,186 shares during the period. Raymond James Financial Inc. acquired a new position in Insight Enterprises during the 4th quarter worth approximately $532,000. Finally, TT International Asset Management LTD acquired a new position in Insight Enterprises during the 1st quarter worth approximately $3,705,000.

Insight Enterprises Price Performance

The company has a debt-to-equity ratio of 0.83, a quick ratio of 1.19 and a current ratio of 1.29. The company has a 50-day simple moving average of $136.99 and a 200-day simple moving average of $145.67. The company has a market cap of $3.84 billion, a price-to-earnings ratio of 28.74, a PEG ratio of 1.11 and a beta of 1.21.

Insight Enterprises Company Profile

Insight Enterprises, Inc, together with its subsidiaries, provides information technology, hardware, software, and services in the United States and internationally. The company offers modern platforms/infrastructure that manages and supports cloud and data platforms, modern networks, and edge technologies; cybersecurity solutions automates and connects modern platform securely; data and artificial intelligence modernizes data platforms and architectures, and build data analytics and AI solutions; modern workplace and apps; and intelligent edge solutions that gathers and utilizes data for real-time decision making.