TD Securities Begins Coverage on The Descartes Systems Group (NASDAQ:DSGX)

Key Points

• TD Securities has reiterated a "buy" rating for The Descartes Systems Group (NASDAQ:DSGX) with a target price of $121.00, indicating a potential upside of 31.05% from the current stock price.
• Recent earnings fell short of expectations, with the company reporting $0.43 EPS against a consensus estimate of $0.49, although revenue rose by 10% year-over-year.
• Institutional investors own 77.73% of the company, with notable increases in holdings by firms such as Wellington Management and GAMMA Investing in recent quarters.

Analysts at TD Securities began coverage on shares of The Descartes Systems Group (NASDAQ:DSGX - Get Free Report) TSE: DSG in a research report issued on Friday, Marketbeat Ratings reports. The brokerage set a "buy" rating and a $121.00 price target on the technology company's stock. TD Securities' price objective indicates a potential upside of 28.14% from the stock's previous close.

Several other brokerages have also commented on DSGX. Zacks Research raised The Descartes Systems Group from a "strong sell" rating to a "hold" rating in a report on Tuesday, September 2nd. Royal Bank Of Canada reduced their price target on shares of The Descartes Systems Group from $130.00 to $126.00 and set an "outperform" rating on the stock in a research report on Thursday, June 5th. Wall Street Zen upgraded shares of The Descartes Systems Group from a "sell" rating to a "hold" rating in a report on Friday, September 5th. Morgan Stanley assumed coverage on shares of The Descartes Systems Group in a report on Monday, July 14th. They issued an "equal weight" rating and a $110.00 price objective for the company. Finally, Barclays lowered their price target on shares of The Descartes Systems Group from $118.00 to $108.00 and set an "equal weight" rating for the company in a report on Thursday, June 5th. Six investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $121.89.

The Descartes Systems Group Trading Up 2.3%

Shares of The Descartes Systems Group stock traded up $2.10 on Friday, reaching $94.43. The stock had a trading volume of 41,436 shares, compared to its average volume of 372,904. The Descartes Systems Group has a 1 year low of $91.00 and a 1 year high of $124.31. The company has a market cap of $8.11 billion, a P/E ratio of 55.81 and a beta of 0.77. The business's 50 day moving average is $101.30 and its two-hundred day moving average is $103.41.

The Descartes Systems Group (NASDAQ:DSGX - Get Free Report) TSE: DSG last announced its quarterly earnings results on Wednesday, September 3rd. The technology company reported $0.43 earnings per share (EPS) for the quarter, missing analysts' consensus estimates 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 period in the previous year, the company posted $0.40 earnings per share. The company's quarterly revenue was up 10.0% compared to the same quarter last year. On average, equities analysts anticipate that The Descartes Systems Group will post 1.64 EPS for the current fiscal year.

Hedge Funds Weigh In On The Descartes Systems Group

A number of institutional investors have recently added to or reduced their stakes in the company. Price T Rowe Associates Inc. MD raised its holdings in The Descartes Systems Group by 15.1% in the first quarter. Price T Rowe Associates Inc. MD now owns 7,134,467 shares of the technology company's stock worth $719,370,000 after purchasing an additional 936,718 shares in the last quarter. Mackenzie Financial Corp raised its position in shares of The Descartes Systems Group by 2.1% in the 2nd quarter. Mackenzie Financial Corp now owns 3,944,757 shares of the technology company's stock worth $400,969,000 after purchasing an additional 80,309 shares during the last quarter. Vanguard Group Inc. raised its position in shares of The Descartes Systems Group by 1.4% in the 1st quarter. Vanguard Group Inc. now owns 3,345,692 shares of the technology company's stock worth $336,814,000 after purchasing an additional 46,369 shares during the last quarter. Fiera Capital Corp raised its position in shares of The Descartes Systems Group by 8.0% in the 1st quarter. Fiera Capital Corp now owns 2,745,848 shares of the technology company's stock worth $276,705,000 after purchasing an additional 202,973 shares during the last quarter. Finally, T. Rowe Price Investment Management Inc. raised its position in shares of The Descartes Systems Group by 10.2% in the 1st quarter. T. Rowe Price Investment Management Inc. now owns 1,947,947 shares of the technology company's stock worth $196,412,000 after purchasing an additional 181,086 shares during the last quarter. Institutional investors own 77.73% of the company's stock.

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.