Constellation Software (TSE:CSU) Share Price Breaks Above 200 Day Moving Average - Here's Why

Key Points

• Constellation Software shares broke above their 200-day moving average, reaching C$3,184.20 before closing at C$3,157.21, compared with the C$2,818.97 average.
• Analyst sentiment remains positive: eight analysts rate the stock Buy and one rates it Hold, producing a “Moderate Buy” consensus and an average price target of C$3,884.40.
• The company reported C$18.37 in quarterly EPS on C$4.74 billion in revenue and declared a C$1 quarterly dividend, while two insiders recently sold shares.

Constellation Software Inc. (TSE:CSU - Get Free Report)'s share price passed above its 200-day moving average during trading on Monday. The stock has a 200-day moving average of C$2,818.97 and traded as high as C$3,184.20. Constellation Software shares last traded at C$3,157.21, with a volume of 58,432 shares traded.

Analyst Ratings Changes

A number of research analysts recently weighed in on CSU shares. Royal Bank Of Canada set a C$4,400.00 price objective on Constellation Software and gave the company an "outperform" rating in a research report on Wednesday, August 26th. Jefferies Financial Group boosted their target price on Constellation Software from C$3,185.00 to C$3,294.00 in a report on Thursday, August 13th. Raymond James Financial boosted their target price on Constellation Software from C$3,200.00 to C$3,500.00 and gave the stock a "market perform" rating in a report on Wednesday, August 12th. National Bank Financial increased their target price on Constellation Software from C$3,500.00 to C$3,700.00 and gave the stock an "outperform" rating in a research note on Thursday, August 13th. Finally, Desjardins raised their price target on Constellation Software from C$3,800.00 to C$3,900.00 and gave the company a "buy" rating in a report on Monday, August 10th. Eight analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of C$3,884.40.

Constellation Software Stock Performance

The company has a market capitalization of C$66.91 billion, a PE ratio of 69.65, a price-to-earnings-growth ratio of 2.95 and a beta of 0.72. The company has a current ratio of 0.90, a quick ratio of 0.55 and a debt-to-equity ratio of 141.06. The business's fifty day moving average is C$2,989.66 and its two-hundred day moving average is C$2,818.97.

Constellation Software (TSE:CSU - Get Free Report) last issued its earnings results on Tuesday, August 11th. The company reported C$18.37 EPS for the quarter. Constellation Software had a return on equity of 25.24% and a net margin of 7.57%. The business had revenue of C$4.74 billion for the quarter. Equities research analysts predict that Constellation Software Inc. will post 55.46 earnings per share for the current year.

Constellation Software Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, October 9th. Stockholders of record on Friday, October 9th were paid a $1.00 dividend. The ex-dividend date was Friday, September 18th. This represents a $4.00 annualized dividend and a dividend yield of 0.1%. Constellation Software's payout ratio is currently 8.82%.

Insiders Place Their Bets

In other news, Director Jamal Nizam Baksh sold 149 shares of the company's stock in a transaction on Tuesday, September 29th. The stock was sold at an average price of C$2,871.23, for a total transaction of C$427,813.27. Following the transaction, the director directly owned 143 shares of the company's stock, valued at C$410,585.89. This represents a 51.03% decrease in their ownership of the stock. Also, insider John Edward Billowits sold 1,200 shares of the stock in a transaction on Friday, August 28th. The shares were sold at an average price of C$3,203.00, for a total value of C$3,843,600.00. Following the sale, the insider directly owned 12,370 shares in the company, valued at C$39,621,110. This trade represents a 8.84% decrease in their ownership of the stock. Corporate insiders own 5.69% of the company's stock.

About Constellation Software

Constellation Software is an international provider of market-leading software and services to a number of industries. Our mission is to acquire, manage and build market-leading software businesses that develop specialized, mission-critical software solutions to address the specific needs of our particular industries. Our company was founded in 1995 to assemble a portfolio of vertical market software companies that have the potential to be leaders in their particular market. Since then, we have grown rapidly through a combination of acquisitions and organic growth, and established a strong constellation of companies with a large, diverse customer base.

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