The Descartes Systems Group Inc (NASDAQ:DSGX) shares fell to a low of $49.79 before closing at $50.79. Intraday shares traded counted 0.14 million, which was 26.95% higher than its 30-day average trading volume of 189.36K. DSGX’s previous close was $50.69 while the outstanding shares total 84.16M. The firm has a beta of 1.04, a 12-month trailing P/E ratio of 105.16, and a growth ratio of 5.41. The stock’s Relative Strength Index (RSI) is 61.08, with weekly volatility at 2.48% and ATR at 1.41. The DSGX stock’s 52-week price range has touched low of $24.35 and a $53.30 high. The stock traded higher over the last trading session, gaining 0.20% on 06/29/20.
Investors have identified the Software – Application company The Descartes Systems Group Inc as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $4.35 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
The Descartes Systems Group Inc (DSGX) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 112360000 million total, with 88960000 million as their total liabilities.
DSGX were able to record 26.51 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 11.57 million. In cash movements, the company had a total of 27.53 million as operating cash flow.
Potential earnings growth for The Descartes Systems Group Inc (DSGX)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, The Descartes Systems Group Inc recorded a total of 83.7 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 6.81% coming in sequential stages and their sales for the third quarter reducing by -0.62%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 21.87 million trying to sell their products during the last quarter, with the result yielding a gross income of 61.84 million. This allows shareholders to hold on to 84.16M with the revenue now reading 0.13 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.12 cents a share).
Having a look at the company’s valuation, the company is expected to record 0.45 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on DSGX sounds very interesting.
Is the stock of DSGX attractive?
In the last 6 months, insiders have changed their ownership in shares of company stock by 0.10%.
7 out of 13 analysts covering the stock have rated it a Buy, while 6 have maintained a Hold recommendation on The Descartes Systems Group Inc. 0 analysts has assigned a Sell rating on the DSGX stock. The 12-month mean consensus price target for the company’s shares has been set at $45.60.