The Descartes Systems Group Inc. (NASDAQ:DSGX) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• The Descartes Systems Group has an average analyst rating of “Moderate Buy” from 13 brokerages, with nine buy/strong-buy ratings outweighing one sell and two hold ratings.
• Analysts have trimmed price targets recently, including cuts from Canaccord Genuity, Barclays, Morgan Stanley and Scotiabank, though the consensus 12-month target remains about $105.45.
• The company beat quarterly expectations, reporting EPS of $0.52 versus $0.50 expected and revenue of $192.37 million, while revenue rose 15.1% year over year.

Shares of The Descartes Systems Group Inc. (NASDAQ:DSGX - Get Free Report) TSE: DSG have been assigned an average recommendation of "Moderate Buy" from the thirteen research firms that are covering the company, Marketbeat.com reports. One investment analyst has rated the stock with a sell rating, two have issued a hold rating, nine have assigned a buy rating and one has given a strong buy rating to the company. The average twelve-month target price among analysts that have issued ratings on the stock in the last year is $105.4545.

Several equities analysts have commented on the stock. Canaccord Genuity Group dropped their price target on shares of The Descartes Systems Group from $110.00 to $92.00 and set a "buy" rating on the stock in a research note on Thursday, March 12th. Barclays dropped their price target on shares of The Descartes Systems Group from $90.00 to $89.00 and set an "overweight" rating on the stock in a research note on Thursday, March 12th. Morgan Stanley dropped their price target on shares of The Descartes Systems Group from $115.00 to $100.00 and set an "overweight" rating on the stock in a research note on Thursday, March 12th. Scotiabank dropped their price target on shares of The Descartes Systems Group from $115.00 to $95.00 and set an "outperform" rating on the stock in a research note on Wednesday, February 4th. Finally, Zacks Research cut The Descartes Systems Group from a "strong-buy" rating to a "hold" rating in a research report on Monday, March 16th.

Institutional Trading of The Descartes Systems Group

Several institutional investors and hedge funds have recently made changes to their positions in DSGX. Norges Bank purchased a new stake in shares of The Descartes Systems Group in the 4th quarter valued at about $100,405,000. Morgan Stanley grew its position in shares of The Descartes Systems Group by 97.2% during the fourth quarter. Morgan Stanley now owns 1,584,393 shares of the technology company's stock worth $138,888,000 after acquiring an additional 780,857 shares during the last quarter. Arrowstreet Capital Limited Partnership grew its position in shares of The Descartes Systems Group by 74.3% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,743,262 shares of the technology company's stock worth $152,898,000 after acquiring an additional 743,104 shares during the last quarter. Temasek Holdings Private Ltd grew its position in shares of The Descartes Systems Group by 63.3% during the third quarter. Temasek Holdings Private Ltd now owns 1,464,165 shares of the technology company's stock worth $137,968,000 after acquiring an additional 567,386 shares during the last quarter. Finally, Westfield Capital Management Co. LP grew its position in shares of The Descartes Systems Group by 54.1% during the third quarter. Westfield Capital Management Co. LP now owns 1,001,331 shares of the technology company's stock worth $94,355,000 after acquiring an additional 351,700 shares during the last quarter. 77.73% of the stock is owned by hedge funds and other institutional investors.

The Descartes Systems Group Price Performance

Shares of NASDAQ DSGX opened at $72.30 on Friday. The Descartes Systems Group has a 1 year low of $62.56 and a 1 year high of $117.35. The company has a market capitalization of $6.22 billion, a price-to-earnings ratio of 38.87 and a beta of 0.65. The business has a 50-day moving average of $70.91 and a two-hundred day moving average of $78.73.

The Descartes Systems Group (NASDAQ:DSGX - Get Free Report) TSE: DSG last issued its earnings results on Wednesday, March 11th. The technology company reported $0.52 earnings per share for the quarter, topping the consensus estimate of $0.50 by $0.02. The business had revenue of $192.37 million for the quarter, compared to analyst estimates of $188.09 million. The Descartes Systems Group had a return on equity of 10.70% and a net margin of 22.47%.The business's quarterly revenue was up 15.1% on a year-over-year basis. During the same quarter last year, the company earned $0.43 EPS. As a group, equities research analysts expect that The Descartes Systems Group will post 2.62 earnings per share for the current year.

The Descartes Systems Group Company Profile

The Descartes Systems Group Inc NASDAQ: DSGX is a global provider of cloud-based logistics and supply chain management solutions. The company's software-as-a-service platform connects and optimizes the flow of goods, information and payments across the global supply chain, helping businesses coordinate transportation, customs clearance, routing, scheduling and fleet management. Descartes' modular applications serve shippers, carriers, third-party logistics providers and regulatory authorities by enabling real-time visibility, compliance and execution across complex trade networks.

Headquartered in Waterloo, Ontario, Descartes was founded in 1981 and has grown through a combination of organic development and strategic acquisitions.

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