Royal Bank Of Canada Has Lowered Expectations for Constellation Software (TSE:CSU) Stock Price

Key Points

• Royal Bank of Canada cut its price target on Constellation Software from C$5,600 to C$4,800 but kept an "outperform" rating, with the new target implying roughly a 71.43% upside from the current share price.
• Several other brokers (TD, Jefferies, Raymond James, BMO, CIBC) also lowered targets, leaving a consensus price target of C$4,481.14 and an overall analyst consensus of "Moderate Buy" (five Buys, two Holds).
• Shares are trading around C$2,799.99 while the company has a market cap of C$59.34B and a PE of 86.42, underscoring a large gap between the current price and analyst targets (12‑month high C$5,300).

Constellation Software (TSE:CSU - Get Free Report) had its price target cut by analysts at Royal Bank Of Canada from C$5,600.00 to C$4,800.00 in a research report issued on Monday,BayStreet.CA reports. The firm presently has an "outperform" rating on the stock. Royal Bank Of Canada's price target points to a potential upside of 71.43% from the stock's current price.

A number of other brokerages have also weighed in on CSU. TD Securities decreased their price objective on Constellation Software from C$5,700.00 to C$5,300.00 in a report on Monday, November 10th. Jefferies Financial Group decreased their price objective on Constellation Software from C$5,850.00 to C$4,500.00 in a report on Monday, November 10th. Raymond James Financial lowered their price target on Constellation Software from C$5,250.00 to C$4,300.00 in a report on Monday, November 10th. BMO Capital Markets lowered their target price on shares of Constellation Software from C$5,400.00 to C$4,600.00 in a research note on Monday, November 10th. Finally, CIBC reduced their price target on shares of Constellation Software from C$5,260.00 to C$4,668.00 in a research note on Friday, January 16th. Five analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of C$4,481.14.

Constellation Software Price Performance

TSE CSU traded up C$18.88 on Monday, hitting C$2,799.99. The company had a trading volume of 93,347 shares, compared to its average volume of 96,105. The company has a debt-to-equity ratio of 169.83, a current ratio of 0.93 and a quick ratio of 0.55. The company has a market capitalization of C$59.34 billion, a PE ratio of 86.42, a PEG ratio of 2.95 and a beta of 0.43. Constellation Software has a 12-month low of C$2,624.41 and a 12-month high of C$5,300.00. The company's fifty day moving average price is C$3,227.04 and its 200-day moving average price is C$3,880.24.

Constellation Software (TSE:CSU - Get Free Report) last released its earnings results on Friday, November 7th. The company reported C$9.89 EPS for the quarter. Constellation Software had a net margin of 6.57% and a return on equity of 27.34%. The business had revenue of C$4.10 billion during the quarter. As a group, analysts predict that Constellation Software will post 55.4616354 earnings per share for the current year.

Insider Buying and Selling

In related news, insider Barry Alan Symons sold 2,500 shares of the company's stock in a transaction on Monday, November 17th. The shares were sold at an average price of C$3,304.25, for a total value of C$8,260,625.00. Following the completion of the sale, the insider owned 57,000 shares in the company, valued at C$188,342,250. This represents a 4.20% decrease in their position. 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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