Constellation Software (OTCMKTS:CNSWF) Shares Down 5.7% - What's Next?

Key Points

• Constellation Software shares fell 5.7% to $2,050, with just 61 shares traded—99% below the average session volume.
• Analyst sentiment remains positive overall, with a consensus “Buy” rating based on one Strong Buy, six Buy, and one Hold rating; Zacks was the only firm to downgrade the stock, to Hold.
• The company exceeded quarterly earnings expectations, reporting $28.70 in EPS versus $27.81 expected, although revenue of $3.33 billion came in slightly below the $3.36 billion consensus estimate.

Constellation Software Inc. (OTCMKTS:CNSWF - Get Free Report) fell 5.7% during trading on Wednesday . The stock traded as low as $2,050.00 and last traded at $2,050.00. 61 shares were traded during trading, a decline of 99% from the average session volume of 10,002 shares. The stock had previously closed at $2,175.00.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on the stock. BMO Capital Markets restated an "outperform" rating on shares of Constellation Software in a research note on Wednesday, May 13th. Zacks Research downgraded Constellation Software from a "strong-buy" rating to a "hold" rating in a report on Wednesday, July 29th. TD Securities reiterated a "buy" rating on shares of Constellation Software in a research report on Thursday, May 14th. Jefferies Financial Group reissued a "buy" rating on shares of Constellation Software in a research note on Thursday, August 13th. Finally, Royal Bank Of Canada restated an "outperform" rating on shares of Constellation Software in a report on Thursday, May 14th. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat, Constellation Software presently has a consensus rating of "Buy".

Constellation Software Price Performance

The business has a 50-day simple moving average of $2,113.86 and a 200 day simple moving average of $1,978.30. The stock has a market cap of $43.23 billion, a P/E ratio of 45.00 and a beta of 0.98. The company has a current ratio of 0.91, a quick ratio of 0.90 and a debt-to-equity ratio of 0.80.

Constellation Software (OTCMKTS:CNSWF - Get Free Report) last released its earnings results on Tuesday, August 11th. The company reported $28.70 earnings per share for the quarter, beating analysts' consensus estimates of $27.81 by $0.89. The business had revenue of $3.33 billion during the quarter, compared to the consensus estimate of $3.36 billion. Constellation Software had a net margin of 7.60% and a return on equity of 48.87%. On average, analysts forecast that Constellation Software Inc. will post 119.33 earnings per share for the current year.

About Constellation Software

Constellation Software Inc is a Canadian technology company that acquires, manages and develops vertical market software businesses. Its subsidiaries provide specialized, mission-critical software used by organizations in industries such as healthcare, education, government, construction, real estate, hospitality, financial services and professional services.

The company generally focuses on acquiring established software businesses that serve specific industry niches. These businesses typically continue operating with substantial autonomy, while Constellation provides capital, management expertise and resources to support long-term growth.

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