Enghouse Systems (TSE:ENGH) Stock Jumps 0.3% - Still a Buy?

Key Points

• Enghouse Systems shares rose 0.3% to C$19.13 in mid-day trading, with volume slightly above average and the stock trading well above its 50- and 200-day moving averages.
• Analysts remain cautious: TD raised its price target to C$17.00 but maintained a “Hold” rating, while the consensus rating is also “Hold” with a C$17.80 target—below the current share price.
• The company reported quarterly EPS of C$0.28 on C$117.58 million in revenue and pays a quarterly dividend of C$0.31, equivalent to a 6.5% annualized yield; however, its 93.8% payout ratio leaves limited room for error.

Enghouse Systems Limited (TSE:ENGH - Get Free Report)'s stock price traded up 0.3% during mid-day trading on Monday. The company traded as high as C$19.20 and last traded at C$19.13. Approximately 271,138 shares were traded during trading, an increase of 7% from the average daily volume of 252,379 shares. The stock had previously closed at C$19.07.

Wall Street Analyst Weigh In

Separately, TD upped their price objective on Enghouse Systems from C$16.00 to C$17.00 and gave the stock a "hold" rating in a research note on Monday, September 14th. Four investment analysts have rated the stock with a Hold rating. According to data from MarketBeat.com, Enghouse Systems has an average rating of "Hold" and a consensus price target of C$17.80.

Enghouse Systems Trading Up 0.3%

The company has a quick ratio of 1.84, a current ratio of 1.77 and a debt-to-equity ratio of 1.34. The firm has a market capitalization of C$1.03 billion, a price-to-earnings ratio of 14.83, a price-to-earnings-growth ratio of -4.19 and a beta of 0.20. The firm's 50 day moving average is C$17.09 and its 200 day moving average is C$17.18.

Enghouse Systems (TSE:ENGH - Get Free Report) last announced its earnings results on Thursday, September 10th. The company reported C$0.28 EPS for the quarter. The business had revenue of C$117.58 million during the quarter. Enghouse Systems had a return on equity of 11.70% and a net margin of 14.75%. Equities analysts forecast that Enghouse Systems Limited will post 1.70 earnings per share for the current year.

Enghouse Systems Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 28th. Shareholders of record on Friday, August 28th were given a $0.31 dividend. This represents a $1.24 annualized dividend and a yield of 6.5%. The ex-dividend date of this dividend was Friday, August 14th. Enghouse Systems's dividend payout ratio is presently 93.80%.

Enghouse Systems Company Profile

Enghouse Systems Limited is a Canadian publicly traded company TSX: ENGH that provides mission-critical vertically focused enterprise software solutions. Our core technologies are used for contact centers, video communications, virtual healthcare, education, telecommunications, networks, IPTV, public safety and transit. The Company's two-pronged strategy to grow earnings focuses on both organic growth and acquisitions, which, to date, have been funded through net cash provided by operating activities as the Company has no external debt financing.

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