The Descartes Systems Group Inc. (NASDAQ:DSGX) Stock Short Interest Falls 52.7%

Key Points

• Short interest plunged 52.7% to 1.87 million shares as of September 15, representing about 2.2% of outstanding shares and 2.2 days of average trading volume to cover.
• Institutional investors own 77.73% of the company, with several firms increasing their stakes during the second quarter, including Manufacturers Life Insurance, which raised its position by 85.8%.
• Descartes reported quarterly revenue of $198.12 million, up 11.8% year over year, while earnings matched estimates at $0.57 per share. Analysts maintain a “Moderate Buy” consensus with an average price target of $102.71.

The Descartes Systems Group Inc. (NASDAQ:DSGX - Get Free Report) TSE: DSG was the recipient of a significant decrease in short interest in the month of September. As of September 15th, there was short interest totaling 1,868,443 shares, a decrease of 52.7% from the August 31st total of 3,946,383 shares. Based on an average daily volume of 844,432 shares, the days-to-cover ratio is currently 2.2 days. Approximately 2.2% of the company's shares are sold short.

Institutional Trading of The Descartes Systems Group

Several institutional investors have recently added to or reduced their stakes in the stock. Envestnet Asset Management Inc. grew its stake in shares of The Descartes Systems Group by 9.0% in the second quarter. Envestnet Asset Management Inc. now owns 143,645 shares of the technology company's stock valued at $9,946,000 after buying an additional 11,828 shares in the last quarter. The Manufacturers Life Insurance Company lifted its stake in The Descartes Systems Group by 85.8% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 2,045,632 shares of the technology company's stock worth $141,403,000 after acquiring an additional 944,877 shares in the last quarter. Van Hulzen Asset Management LLC acquired a new position in The Descartes Systems Group during the 2nd quarter worth about $669,000. Maven Securities LTD purchased a new position in The Descartes Systems Group during the 2nd quarter valued at about $818,000. Finally, Waverly Advisors LLC boosted its holdings in The Descartes Systems Group by 46.6% during the 2nd quarter. Waverly Advisors LLC now owns 80,543 shares of the technology company's stock valued at $5,577,000 after acquiring an additional 25,595 shares during the period. Institutional investors and hedge funds own 77.73% of the company's stock.

The Descartes Systems Group Trading Up 0.8%

NASDAQ DSGX traded up $0.61 during trading hours on Tuesday, reaching $79.46. The company had a trading volume of 388,417 shares, compared to its average volume of 625,681. The stock has a market capitalization of $6.80 billion, a P/E ratio of 37.13 and a beta of 0.62. The stock has a 50-day moving average of $77.06 and a 200 day moving average of $73.45. The Descartes Systems Group has a 1-year low of $62.56 and a 1-year high of $98.35.

The Descartes Systems Group (NASDAQ:DSGX - Get Free Report) TSE: DSG last announced its quarterly earnings results on Thursday, September 10th. The technology company reported $0.57 earnings per share for the quarter, meeting analysts' consensus estimates of $0.57. The business had revenue of $198.12 million during the quarter, compared to analysts' expectations of $197.54 million. The Descartes Systems Group had a net margin of 24.25% and a return on equity of 11.66%. The business's revenue for the quarter was up 11.8% on a year-over-year basis. During the same period last year, the business earned $0.43 earnings per share. As a group, sell-side analysts predict that The Descartes Systems Group will post 2.37 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the stock. Scotiabank lifted 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 research note on Friday, September 11th. National Bank Financial raised their price target on shares of The Descartes Systems Group from $95.00 to $100.00 and gave the stock an "outperform" rating in a report on Monday, September 14th. Weiss Ratings raised shares of The Descartes Systems Group from a "hold (c-)" rating to a "hold (c)" rating in a research report on Monday, September 21st. Royal Bank Of Canada set a $125.00 price objective on The Descartes Systems Group and gave the company an "outperform" rating in a report on Friday, September 4th. Finally, Scotia increased their price objective on The Descartes Systems Group from $95.00 to $98.00 and gave the stock a "sector outperform" rating in a research report on Friday, September 11th. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $102.71.

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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