The Descartes Systems Group (NASDAQ:DSGX) Lowered to Sell Rating by Wall Street Zen

Key Points

• Wall Street Zen has downgraded The Descartes Systems Group (NASDAQ:DSGX) from a "hold" rating to a "sell" rating, indicating a more negative outlook for the company's stock.
• In recent research reports, other firms have reduced their target prices for DSGX, with Barclays setting a new target at $108.00 while Royal Bank Of Canada targets $126.00.
• Despite these downgrades, analysts still maintain an average rating of "Moderate Buy" for DSGX, with a current average target price of $122.18.

Wall Street Zen downgraded shares of The Descartes Systems Group (NASDAQ:DSGX - Free Report) TSE: DSG from a hold rating to a sell rating in a research report report published on Saturday morning.

A number of other equities research analysts have also issued reports on the company. Stephens reduced their target price on The Descartes Systems Group from $137.00 to $125.00 and set an "overweight" rating on the stock in a research note on Wednesday, April 9th. Barclays reduced their price target on shares of The Descartes Systems Group from $118.00 to $108.00 and set an "equal weight" rating on the stock in a research report on Thursday, June 5th. Morgan Stanley started coverage on shares of The Descartes Systems Group in a research report on Monday, July 14th. They set an "equal weight" rating and a $110.00 price target on the stock. Finally, 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. One research 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 company. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $122.18.

The Descartes Systems Group Price Performance

NASDAQ DSGX traded down $2.20 during trading hours on Friday, reaching $105.44. The company's stock had a trading volume of 136,430 shares, compared to its average volume of 332,814. The company's 50-day moving average is $104.19 and its two-hundred day moving average is $106.85. The Descartes Systems Group has a 1-year low of $92.00 and a 1-year high of $124.31. The firm has a market capitalization of $9.05 billion, a price-to-earnings ratio of 63.52 and a beta of 0.81.

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

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Geode Capital Management LLC increased its stake in shares of The Descartes Systems Group by 23.0% during the fourth quarter. Geode Capital Management LLC now owns 590,010 shares of the technology company's stock valued at $67,934,000 after acquiring an additional 110,329 shares during the period. GAMMA Investing LLC boosted its holdings in The Descartes Systems Group by 9,983.0% during the first quarter. GAMMA Investing LLC now owns 50,919 shares of the technology company's stock worth $5,134,000 after buying an additional 50,414 shares in the last quarter. Wellington Management Group LLP boosted its holdings in The Descartes Systems Group by 5.8% during the fourth quarter. Wellington Management Group LLP now owns 7,957 shares of the technology company's stock worth $904,000 after buying an additional 438 shares in the last quarter. Mackenzie Financial Corp boosted its holdings in The Descartes Systems Group by 130.4% during 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 in the last quarter. Finally, Bank of New York Mellon Corp boosted its stake in The Descartes Systems Group by 2.7% in the 1st quarter. Bank of New York Mellon Corp now owns 128,335 shares of the technology company's stock worth $12,940,000 after purchasing an additional 3,316 shares during the period. Institutional investors and hedge funds 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.