The Descartes Systems Group (NASDAQ:DSGX) Sees Large Volume Increase - Still a Buy?

Key Points

• The Descartes Systems Group experienced a significant increase in trading volume, with approximately 1.7 million shares traded, marking a 407% rise from the previous session.
• Research analysts have mixed ratings on the stock, with a consensus rating of "Moderate Buy" and an average price target of $122.18.
• Despite reporting a revenue increase of 11.5% year-over-year, the company's EPS of $0.41 fell short of analysts' expectations of $0.46.

The Descartes Systems Group Inc. (NASDAQ:DSGX - Get Free Report) TSE: DSG shares saw an uptick in trading volume on Wednesday . 1,725,360 shares traded hands during trading, an increase of 407% from the previous session's volume of 340,078 shares.The stock last traded at $99.46 and had previously closed at $99.36.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on DSGX. Morgan Stanley began 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 objective for the company. Royal Bank Of Canada cut their price objective 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. Barclays dropped their target price 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. Finally, Wall Street Zen cut The Descartes Systems Group from a "hold" rating to a "sell" rating in a research report on Saturday, August 2nd. One analyst has rated the stock with a sell rating, three have issued a hold rating, eight have issued a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, The Descartes Systems Group presently has an average rating of "Moderate Buy" and an average target price of $122.18.

The Descartes Systems Group Trading Up 0.5%

The firm has a 50-day moving average of $102.39 and a 200 day moving average of $105.78. The stock has a market capitalization of $8.48 billion, a price-to-earnings ratio of 59.45 and a beta of 0.81.

The Descartes Systems Group (NASDAQ:DSGX - Get Free Report) TSE: DSG last posted its earnings results on Wednesday, June 4th. The technology company reported $0.41 EPS for the quarter, missing analysts' consensus estimates of $0.46 by ($0.05). The Descartes Systems Group had a return on equity of 10.53% and a net margin of 21.67%. The firm had revenue of $168.74 million for the quarter, compared to analyst estimates of $169.60 million. During the same period in the previous year, the firm posted $0.40 earnings per share. The company's revenue for the quarter was up 11.5% on a year-over-year basis. As a group, research analysts forecast that The Descartes Systems Group Inc. will post 1.64 EPS for the current year.

Hedge Funds Weigh In On The Descartes Systems Group

Institutional investors have recently made changes to their positions in the business. Price T Rowe Associates Inc. MD increased its stake in The Descartes Systems Group by 15.1% during the first quarter. Price T Rowe Associates Inc. MD now owns 7,134,467 shares of the technology company's stock valued at $719,370,000 after purchasing an additional 936,718 shares during the last quarter. Mackenzie Financial Corp increased its position in The Descartes Systems Group by 130.4% in the fourth quarter. Mackenzie Financial Corp now owns 4,947,789 shares of the technology company's stock worth $561,827,000 after buying an additional 2,800,492 shares during the period. Vanguard Group Inc. increased its position in The Descartes Systems Group by 1.4% in the first quarter. Vanguard Group Inc. now owns 3,345,692 shares of the technology company's stock worth $336,814,000 after buying an additional 46,369 shares during the period. Fiera Capital Corp increased its position in The Descartes Systems Group by 8.0% in the first quarter. Fiera Capital Corp now owns 2,745,848 shares of the technology company's stock worth $276,705,000 after buying an additional 202,973 shares during the period. Finally, T. Rowe Price Investment Management Inc. increased its position in The Descartes Systems Group by 10.2% in the first quarter. T. Rowe Price Investment Management Inc. now owns 1,947,947 shares of the technology company's stock worth $196,412,000 after buying an additional 181,086 shares during the period. 77.73% of the stock is owned by institutional investors and hedge funds.

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.