ePlus (NASDAQ:PLUS) Hits New 12-Month High - Time to Buy?

Key Points

• ePlus shares reached a new 52-week high, trading as high as $98.21 and last quoted at $97.22, giving the company a market capitalization of approximately $2.54 billion.
• The company exceeded quarterly expectations, reporting $1.28 in earnings per share versus the $1.19 consensus estimate and revenue of $649.11 million. ePlus also pays a quarterly dividend of $0.27 per share, equivalent to a 1.1% yield.
• Analysts maintain a consensus “Hold” rating, while insiders sold 19,700 shares worth about $1.88 million over the past three months; institutional investors own 93.8% of outstanding shares.

ePlus inc. (NASDAQ:PLUS - Get Free Report)'s share price hit a new 52-week high on Monday. The stock traded as high as $98.21 and last traded at $97.2220, with a volume of 16,724 shares trading hands. The stock had previously closed at $95.36.

Analyst Upgrades and Downgrades

PLUS has been the subject of several analyst reports. Zacks Research raised shares of ePlus from a "strong sell" rating to a "hold" rating in a research note on Friday, July 31st. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of ePlus in a research report on Tuesday, October 6th. Two investment analysts have rated the stock with a Hold rating. According to MarketBeat.com, the company presently has an average rating of "Hold".

ePlus Price Performance

The stock has a market capitalization of $2.54 billion, a P/E ratio of 21.19, a PEG ratio of 1.23 and a beta of 0.96. The stock has a 50 day moving average price of $90.94 and a 200-day moving average price of $87.30.

ePlus (NASDAQ:PLUS - Get Free Report) last released its earnings results on Tuesday, August 4th. The software maker reported $1.28 earnings per share for the quarter, topping analysts' consensus estimates of $1.19 by $0.09. ePlus had a net margin of 4.91% and a return on equity of 11.51%. The firm had revenue of $649.11 million for the quarter, compared to the consensus estimate of $639.95 million. Research analysts predict that ePlus inc. will post 4.86 earnings per share for the current fiscal year.

ePlus Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, September 16th. Shareholders of record on Tuesday, August 25th were paid a dividend of $0.27 per share. This represents a $1.08 annualized dividend and a yield of 1.1%. The ex-dividend date was Tuesday, August 25th. ePlus's payout ratio is presently 23.63%.

Insider Buying and Selling

In related news, CFO Elaine D. Marion sold 4,842 shares of the stock in a transaction on Tuesday, October 13th. The stock was sold at an average price of $96.33, for a total value of $466,429.86. Following the transaction, the chief financial officer owned 79,259 shares of the company's stock, valued at $7,635,019.47. This represents a 5.76% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director John E. Callies sold 500 shares of the firm's stock in a transaction on Friday, August 14th. The stock was sold at an average price of $88.09, for a total transaction of $44,045.00. Following the completion of the sale, the director owned 20,648 shares of the company's stock, valued at $1,818,882.32. This trade represents a 2.36% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 19,700 shares of company stock valued at $1,875,748. Corporate insiders own 2.20% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. bought a new stake in ePlus during the second quarter valued at $337,929,000. Dimensional Fund Advisors LP increased its stake in shares of ePlus by 3.8% during the first quarter. Dimensional Fund Advisors LP now owns 1,310,378 shares of the software maker's stock valued at $98,604,000 after acquiring an additional 48,158 shares during the period. First Trust Advisors LP lifted its holdings in shares of ePlus by 118.2% in the first quarter. First Trust Advisors LP now owns 579,047 shares of the software maker's stock valued at $43,573,000 after buying an additional 313,674 shares during the period. Royal Bank of Canada boosted its position in shares of ePlus by 9.6% during the 1st quarter. Royal Bank of Canada now owns 278,636 shares of the software maker's stock valued at $20,968,000 after purchasing an additional 24,348 shares in the last quarter. Finally, Neumeier Poma Investment Counsel LLC bought a new stake in shares of ePlus during the 2nd quarter worth $22,888,250. 93.80% of the stock is owned by hedge funds and other institutional investors.

ePlus Company Profile

ePlus inc. NASDAQ: PLUS provides technology solutions, professional services and financing to organizations in the commercial, government, healthcare and education sectors. Through its technology business, the company helps customers plan, implement and manage information technology environments, including data center, networking, cybersecurity, collaboration, cloud and digital infrastructure solutions.

The company also offers managed and professional services, technology consulting, IT asset management, and lifecycle services.

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