Constellation Software (TSE:CSU) Shares Break Above 200-Day Moving Average - Should You Sell?

Key Points

• Constellation Software shares rose above their 200-day moving average, reaching approximately C$3,003.84 versus the moving average of C$2,785.95.
• Analyst sentiment remained positive: eight analysts rated the stock “Buy” and one rated it “Hold,” producing a consensus “Moderate Buy” rating and an average target price of C$3,884.40.
• The company reported C$18.37 in quarterly EPS on C$4.74 billion in revenue and announced a C$1.00 quarterly dividend. However, insiders recently sold shares, including a director who reduced his ownership by more than 50%.

Constellation Software Inc. (TSE:CSU - Get Free Report)'s stock price passed above its 200-day moving average during trading on Friday. The stock has a 200-day moving average of C$2,785.95 and traded as high as C$3,003.84. Constellation Software shares last traded at C$3,003.78, with a volume of 44,706 shares traded.

Analyst Ratings Changes

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

Constellation Software Trading Up 3.2%

The firm has a market cap of C$63.66 billion, a price-to-earnings ratio of 66.26, a price-to-earnings-growth ratio of 2.95 and a beta of 0.72. The business's 50 day moving average price is C$2,994.63 and its 200-day moving average price is C$2,785.95. The company has a debt-to-equity ratio of 141.06, a quick ratio of 0.55 and a current ratio of 0.90.

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

Constellation Software Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, October 9th. Stockholders of record on Friday, October 9th were given 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 dividend payout ratio (DPR) is presently 8.82%.

Insider Activity at Constellation Software

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

Constellation Software Company Profile

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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