Computer Modelling Group (TSE:CMG) Trading Up 8.8% - Should You Buy?

Key Points

• Computer Modelling Group shares jumped 8.8% to C$4.22 in mid-day trading, with volume modestly above average.
• Analyst sentiment remains cautiously positive: the stock has a consensus “Moderate Buy” rating and an average price target of C$5.75, although National Bank Financial lowered its target to C$4.50 and maintained a “sector perform” rating.
• The company reported quarterly EPS of C$0.02 on C$27.85 million in revenue and recently paid a C$0.01 quarterly dividend, equivalent to a 1.0% annual yield; insiders have also purchased shares recently.

Shares of Computer Modelling Group Ltd. (TSE:CMG - Get Free Report) rose 8.8% during mid-day trading on Wednesday . The stock traded as high as C$4.27 and last traded at C$4.22. 195,493 shares changed hands during mid-day trading, an increase of 9% from the average session volume of 179,143 shares. The stock had previously closed at C$3.88.

Wall Street Analysts Forecast Growth

Separately, National Bank Financial reduced their target price on Computer Modelling Group from C$5.00 to C$4.50 and set a "sector perform" rating for the company in a report on Wednesday, May 27th. Two equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of C$5.75.

Computer Modelling Group Trading Up 8.0%

The company has a quick ratio of 2.25, a current ratio of 1.06 and a debt-to-equity ratio of 54.99. The company has a market cap of C$326.79 million, a P/E ratio of 22.05, a P/E/G ratio of 1.97 and a beta of -0.61. The business has a 50-day moving average price of C$3.85 and a two-hundred day moving average price of C$3.88.

Computer Modelling Group (TSE:CMG - Get Free Report) last posted its quarterly earnings results on Wednesday, August 12th. The company reported C$0.02 earnings per share (EPS) for the quarter. The business had revenue of C$27.85 million for the quarter. Computer Modelling Group had a return on equity of 18.44% and a net margin of 12.41%. On average, analysts predict that Computer Modelling Group Ltd. will post 0.3055122 EPS for the current year.

Computer Modelling Group Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 15th. Investors of record on Tuesday, September 15th were paid a dividend of $0.01 per share. This represents a $0.04 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend was Friday, September 4th. Computer Modelling Group's payout ratio is 21.05%.

Insider Activity at Computer Modelling Group

In related news, Director Pramod Jain purchased 12,054 shares of Computer Modelling Group stock in a transaction dated Tuesday, June 30th. The shares were acquired at an average cost of C$3.47 per share, for a total transaction of C$41,827.38. Following the transaction, the director directly owned 192,897 shares of the company's stock, valued at approximately C$669,352.59. This trade represents a 6.67% increase in their ownership of the stock. Also, Director Anuroop Duggal acquired 25,000 shares of the company's stock in a transaction that occurred on Tuesday, June 30th. The stock was bought at an average price of C$3.57 per share, with a total value of C$89,250.00. Following the acquisition, the director directly owned 214,134 shares of the company's stock, valued at C$764,458.38. The trade was a 13.22% increase in their position. Insiders purchased 48,367 shares of company stock worth $170,333 over the last 90 days. 1.03% of the stock is currently owned by company insiders.

About Computer Modelling Group

Computer Modelling Group Ltd is a Canada-based provider of reservoir simulation software for the oil and gas industry. Its capabilities include integrated analysis and optimization, black oil and unconventional simulation, reservoir and production system modelling, post-processor visualization, compositional simulation, thermal processes simulation, and fluid property characterization. The firm has operations in over 60 countries in the Americas, Europe, Middle East, Africa, and Asia-Pacific regions.

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