TD Cowen Reiterates "Buy" Rating for The Descartes Systems Group (NASDAQ:DSGX)

Key Points

• TD Cowen has reiterated its "buy" rating for The Descartes Systems Group (NASDAQ:DSGX), with a price target of $121.00, indicating a potential upside of 27.66% from the current stock price.
• The Descartes Systems Group's recent quarterly earnings report revealed earnings per share (EPS) of $0.43, missing analyst expectations, though revenue increased by 10.0% year-over-year.
• Institutional interest is high, with 77.73% of the stock owned by hedge funds and significant investments made by Norges Bank and others in recent quarters.

The Descartes Systems Group (NASDAQ:DSGX - Get Free Report) TSE: DSG's stock had its "buy" rating restated by research analysts at TD Cowen in a report issued on Friday,Benzinga reports. They currently have a $121.00 price objective on the technology company's stock. TD Cowen's price target would suggest a potential upside of 27.66% from the company's current price.

DSGX has been the subject of several other reports. Wall Street Zen upgraded The Descartes Systems Group from a "sell" rating to a "hold" rating in a research report on Friday, September 5th. TD Securities started coverage on The Descartes Systems Group in a research report on Friday. They set a "buy" rating and a $121.00 price target for the company. Barclays reduced their price target on The Descartes Systems Group from $118.00 to $108.00 and set an "equal weight" rating for the company in a research report on Thursday, June 5th. Morgan Stanley started coverage on The Descartes Systems Group in a research report on Monday, July 14th. They set an "equal weight" rating and a $110.00 price target for the company. Finally, Royal Bank Of Canada reduced their price target on The Descartes Systems Group from $130.00 to $126.00 and set an "outperform" rating for the company in a research report on Thursday, June 5th. Seven equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $121.80.

The Descartes Systems Group Stock Up 2.7%

Shares of NASDAQ:DSGX traded up $2.46 during trading on Friday, hitting $94.79. The stock had a trading volume of 59,260 shares, compared to its average volume of 373,026. The Descartes Systems Group has a 12-month low of $91.00 and a 12-month high of $124.31. The stock has a market capitalization of $8.15 billion, a price-to-earnings ratio of 56.06 and a beta of 0.77. The stock has a 50-day simple moving average of $101.30 and a two-hundred day simple moving average of $103.41.

The Descartes Systems Group (NASDAQ:DSGX - Get Free Report) TSE: DSG last announced its quarterly earnings data on Wednesday, September 3rd. The technology company reported $0.43 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.49 by ($0.06). The Descartes Systems Group had a return on equity of 10.41% and a net margin of 21.64%.The firm had revenue of $178.98 million during the quarter, compared to analysts' expectations of $176.51 million. During the same quarter in the previous year, the business earned $0.40 earnings per share. The company's revenue for the quarter was up 10.0% compared to the same quarter last year. As a group, sell-side analysts forecast that The Descartes Systems Group will post 1.64 earnings per share for the current year.

Institutional Trading of The Descartes Systems Group

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Norges Bank purchased a new stake in The Descartes Systems Group in the second quarter valued at $117,678,000. Price T Rowe Associates Inc. MD boosted its position in shares of The Descartes Systems Group by 15.1% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 7,134,467 shares of the technology company's stock worth $719,370,000 after acquiring an additional 936,718 shares in the last quarter. Temasek Holdings Private Ltd acquired a new position in shares of The Descartes Systems Group during the 2nd quarter worth about $91,155,000. CIBC Asset Management Inc boosted its position in shares of The Descartes Systems Group by 275.4% in the 2nd quarter. CIBC Asset Management Inc now owns 835,599 shares of the technology company's stock valued at $85,085,000 after purchasing an additional 613,009 shares during the period. Finally, Picton Mahoney Asset Management acquired a new stake in shares of The Descartes Systems Group in the 2nd quarter valued at about $48,378,000. 77.73% of the stock is currently owned by hedge funds and other institutional investors.

About The Descartes Systems Group

The Descartes Systems Group Inc provides cloud-based logistics and supply chain management solutions worldwide. Its Logistics Technology platform offers a range of modular, interoperable web and wireless logistics management solutions. The company provides a suite of solutions that include routing, mobile, and telematics; transportation management; ecommerce, shipping, and fulfillment; customs and regulatory compliance; global trade intelligence; broker and forwarder enterprise systems; and B2B messaging and connectivity services.

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