The Descartes Systems Group (NASDAQ:DSGX) Trading 7.3% Higher on Earnings Beat

The Descartes Systems Group Inc. (NASDAQ:DSGX) (TSE:DSG)’s share price was up 7.3% during trading on Thursday following a stronger than expected earnings report. The stock traded as high as $73.80 and last traded at $74.14. Approximately 402,959 shares changed hands during trading, a decline of 46% from the average daily volume of 745,486 shares. The stock had previously closed at $69.10.

The technology company reported $0.52 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.50 by $0.02. The Descartes Systems Group had a return on equity of 10.57% and a net margin of 22.10%.The firm had revenue of $192.37 million during the quarter, compared to analysts’ expectations of $188.09 million. During the same quarter in the prior year, the business earned $0.43 earnings per share. The company’s revenue was up 15.1% on a year-over-year basis.

Analyst Upgrades and Downgrades

DSGX has been the topic of a number of recent analyst reports. Morgan Stanley upgraded The Descartes Systems Group from an “equal weight” rating to an “overweight” rating in a research note on Thursday, January 15th. Royal Bank Of Canada set a $126.00 price target on shares of The Descartes Systems Group and gave the company an “outperform” rating in a report on Monday, December 1st. Weiss Ratings restated a “hold (c)” rating on shares of The Descartes Systems Group in a report on Monday, December 29th. Zacks Research upgraded shares of The Descartes Systems Group from a “hold” rating to a “strong-buy” rating in a research note on Friday, January 16th. Finally, Raymond James Financial raised The Descartes Systems Group from a “market perform” rating to an “outperform” rating and set a $118.00 target price on the stock in a research report on Thursday, December 4th. Two research analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Buy” and an average price target of $112.60.

Hedge Funds Weigh In On The Descartes Systems Group

Large investors have recently modified their holdings of the stock. Norges Bank bought a new position in The Descartes Systems Group in the 2nd quarter worth approximately $117,678,000. Temasek Holdings Private Ltd bought a new stake in shares of The Descartes Systems Group during the second quarter worth $91,155,000. Morgan Stanley lifted its stake in shares of The Descartes Systems Group by 97.2% during the fourth quarter. Morgan Stanley now owns 1,584,393 shares of the technology company’s stock valued at $138,888,000 after acquiring an additional 780,857 shares during the period. Arrowstreet Capital Limited Partnership boosted its holdings in The Descartes Systems Group by 74.3% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,743,262 shares of the technology company’s stock valued at $152,898,000 after acquiring an additional 743,104 shares during the last quarter. Finally, CIBC Asset Management Inc raised its holdings in The Descartes Systems Group by 275.4% during the 2nd quarter. CIBC Asset Management Inc now owns 835,599 shares of the technology company’s stock worth $85,085,000 after purchasing an additional 613,009 shares during the last quarter. 77.73% of the stock is currently owned by institutional investors and hedge funds.

The Descartes Systems Group Trading Up 7.1%

The stock has a market capitalization of $6.37 billion, a P/E ratio of 41.98 and a beta of 0.77. The company has a fifty day simple moving average of $74.84 and a two-hundred day simple moving average of $86.47.

About The Descartes Systems Group

The Descartes Systems Group Inc (NASDAQ: DSGX) is a global provider of cloud-based logistics and supply chain management solutions. The company’s software-as-a-service platform connects and optimizes the flow of goods, information and payments across the global supply chain, helping businesses coordinate transportation, customs clearance, routing, scheduling and fleet management. Descartes’ modular applications serve shippers, carriers, third-party logistics providers and regulatory authorities by enabling real-time visibility, compliance and execution across complex trade networks.

Headquartered in Waterloo, Ontario, Descartes was founded in 1981 and has grown through a combination of organic development and strategic acquisitions.