The Descartes Systems Group (TSE:DSG) Stock Crosses Below 200-Day Moving Average - Here's Why

Key Points

• Shares of The Descartes Systems Group recently fell below its 200-day moving average (200-day MA C$119.87), trading as low as C$93.09 and last at C$95.15 on volume of 410,740, down about 3.1%.
• Analyst sentiment is bullish after several upgrades—two firms rate the stock Strong Buy and one rates it Buy, leaving an average consensus of "Strong Buy" following upgrades from Raymond James, TD Securities and Barclays.
• The business has a market cap of C$8.18 billion and a high valuation (P/E ~53.5, PEG 2.39) but solid liquidity (quick ratio 1.85, debt/equity 0.49); it operates the transaction-driven Global Logistics Network, a SaaS platform with multiyear customer minimums.

The Descartes Systems Group Inc. (TSE:DSG - Get Free Report) NASDAQ: DSGX shares passed below its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of C$119.87 and traded as low as C$93.09. The Descartes Systems Group shares last traded at C$95.15, with a volume of 410,740 shares trading hands.

Wall Street Analysts Forecast Growth

DSG has been the subject of a number of analyst reports. Raymond James Financial upgraded shares of The Descartes Systems Group from a "hold" rating to a "moderate buy" rating in a research note on Thursday, December 4th. TD Securities upgraded shares of The Descartes Systems Group to a "strong-buy" rating in a report on Friday, December 5th. Finally, Barclays raised shares of The Descartes Systems Group from a "hold" rating to a "strong-buy" rating in a research note on Monday, January 12th. Two equities research analysts have rated the stock with a Strong Buy rating and one has assigned a Buy rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Strong Buy".

The Descartes Systems Group Stock Down 3.1%

The company has a quick ratio of 1.85, a current ratio of 1.83 and a debt-to-equity ratio of 0.49. The business has a 50-day simple moving average of C$103.14 and a 200-day simple moving average of C$119.87. The stock has a market cap of C$8.18 billion, a P/E ratio of 53.46, a PEG ratio of 2.39 and a beta of 0.26.

The Descartes Systems Group Company Profile

The Descartes Systems Group provides a software solution that allows users in the shipping industry to communicate with one another. The core product is the Global Logistics Network, which is best understood as transaction driven. Descartes charges clients to send/receive messages, data, and documents on the GLN (the transactions). Customers typically contract for a monthly minimum over a multiyear period. The GLN platform allows for Descartes to upsell additional software modules as well, typically provided via a software-as-a-service model.

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