Wall Street Zen Downgrades The Descartes Systems Group (NASDAQ:DSGX) to Sell

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.

The Descartes Systems Group (NASDAQ:DSGX - Get Free Report) TSE: DSG was downgraded by stock analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued on Saturday.

Several other research firms have also recently issued reports on DSGX. Barclays decreased their target price 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. Stephens decreased their target price on shares of The Descartes Systems Group from $137.00 to $125.00 and set an "overweight" rating on the stock in a research report on Wednesday, April 9th. Morgan Stanley initiated coverage on shares of The Descartes Systems Group in a research report on Monday, July 14th. They issued an "equal weight" rating and a $110.00 target price on the stock. Finally, Royal Bank Of Canada decreased their target price 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 investment analyst has rated the stock with a sell rating, three have issued a hold rating, eight have issued a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $122.18.

The Descartes Systems Group Price Performance

Shares of NASDAQ DSGX opened at $104.46 on Friday. The company has a market cap of $8.96 billion, a PE ratio of 62.93 and a beta of 0.81. The Descartes Systems Group has a 12 month low of $90.61 and a 12 month high of $124.31. The company has a 50-day simple moving average of $104.54 and a 200-day simple moving average of $107.02.

The Descartes Systems Group (NASDAQ:DSGX - Get Free Report) TSE: DSG last issued its quarterly 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 analysts' expectations of $169.60 million. During the same quarter last year, the firm earned $0.40 earnings per share. The business's quarterly revenue was up 11.5% compared to the same quarter last year. On average, analysts anticipate that The Descartes Systems Group will post 1.64 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Bessemer Group Inc. lifted its position in The Descartes Systems Group by 4.0% during the second quarter. Bessemer Group Inc. now owns 245,286 shares of the technology company's stock valued at $24,930,000 after buying an additional 9,407 shares in the last quarter. MQS Management LLC acquired a new position in shares of The Descartes Systems Group during the second quarter worth $225,000. Whittier Trust Co. of Nevada Inc. lifted its position in shares of The Descartes Systems Group by 15.3% during the second quarter. Whittier Trust Co. of Nevada Inc. now owns 22,368 shares of the technology company's stock worth $2,273,000 after purchasing an additional 2,976 shares in the last quarter. Whittier Trust Co. lifted its position in shares of The Descartes Systems Group by 10.8% during the second quarter. Whittier Trust Co. now owns 17,446 shares of the technology company's stock worth $1,773,000 after purchasing an additional 1,700 shares in the last quarter. Finally, Stephens Inc. AR lifted its position in shares of The Descartes Systems Group by 7.1% during the second quarter. Stephens Inc. AR now owns 9,275 shares of the technology company's stock worth $943,000 after purchasing an additional 616 shares in the last quarter. 77.73% of the stock is owned by institutional investors and hedge funds.

The Descartes Systems Group Company Profile

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.

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