The Descartes Systems Group (NASDAQ:DSGX – Get Free Report) (TSE:DSG) had its price target hoisted by equities research analysts at Scotia from $95.00 to $98.00 in a report released on Friday, BayStreet reports. The brokerage presently has a “sector outperform” rating on the technology company’s stock. Scotia’s price objective would suggest a potential upside of 30.12% from the company’s previous close.
A number of other equities analysts have also weighed in on the company. National Bank Financial set a $95.00 price objective on The Descartes Systems Group and gave the stock an “outperform” rating in a research note on Monday, July 20th. Royal Bank Of Canada set a $125.00 price target on The Descartes Systems Group and gave the stock an “outperform” rating in a report on Friday, September 4th. Weiss Ratings raised shares of The Descartes Systems Group from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Tuesday, July 21st. Loop Capital reissued a “buy” rating and issued a $96.00 price objective on shares of The Descartes Systems Group in a report on Thursday, June 4th. Finally, Raymond James Financial cut their price objective on shares of The Descartes Systems Group from $118.00 to $108.00 and set an “outperform” rating for the company in a research report on Thursday, June 4th. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, The Descartes Systems Group currently has a consensus rating of “Moderate Buy” and an average price target of $102.36.
Read Our Latest Research Report on DSGX
The Descartes Systems Group Price Performance
The Descartes Systems Group (NASDAQ:DSGX – Get Free Report) (TSE:DSG) last issued its earnings results on Thursday, September 10th. The technology company reported $0.57 EPS for the quarter, meeting analysts’ consensus estimates of $0.57. The business had revenue of $198.12 million during the quarter, compared to analysts’ expectations of $197.54 million. The Descartes Systems Group had a net margin of 23.35% and a return on equity of 11.17%. The company’s quarterly revenue was up 11.8% compared to the same quarter last year. During the same period in the prior year, the business earned $0.43 earnings per share. As a group, equities research analysts expect that The Descartes Systems Group will post 2.34 earnings per share for the current year.
Institutional Inflows and Outflows
Large investors have recently bought and sold shares of the stock. AXA S.A. increased its stake in shares of The Descartes Systems Group by 2.0% in the 2nd quarter. AXA S.A. now owns 6,702 shares of the technology company’s stock valued at $681,000 after acquiring an additional 130 shares during the last quarter. Reynders McVeigh Capital Management LLC raised its holdings in The Descartes Systems Group by 0.3% in the third quarter. Reynders McVeigh Capital Management LLC now owns 55,260 shares of the technology company’s stock worth $5,207,000 after purchasing an additional 140 shares during the period. Orion Porfolio Solutions LLC grew its holdings in shares of The Descartes Systems Group by 4.1% in the 2nd quarter. Orion Porfolio Solutions LLC now owns 3,616 shares of the technology company’s stock valued at $368,000 after buying an additional 143 shares during the period. Federated Hermes Inc. increased its position in shares of The Descartes Systems Group by 19.2% in the 4th quarter. Federated Hermes Inc. now owns 1,098 shares of the technology company’s stock valued at $96,000 after buying an additional 177 shares in the last quarter. Finally, EverSource Wealth Advisors LLC raised its stake in The Descartes Systems Group by 57.5% during the 1st quarter. EverSource Wealth Advisors LLC now owns 548 shares of the technology company’s stock worth $39,000 after buying an additional 200 shares during the period. Institutional investors and hedge funds own 77.73% of the company’s stock.
The Descartes Systems Group News Summary
Here are the key news stories impacting The Descartes Systems Group this week:
- Positive Sentiment: Scotiabank raised its price target from $95 to $98 and maintained a “sector outperform” rating. The new target implies approximately 29% upside from the referenced share price, providing additional investor support.
- Positive Sentiment: Descartes reported record Q2FY27 results. Revenue increased 12% year over year to $201.1 million, while income from operations rose 36% to $65.5 million and net income climbed 32% to $50.0 million. Descartes Announces Fiscal 2027 Second Quarter Financial Results
- Positive Sentiment: Profitability and cash flow improved. Diluted EPS rose to $0.57 from $0.43 a year earlier, adjusted EBITDA increased 18% to $94.4 million, and the EBITDA margin expanded to 47%. Operating cash flow grew 28% to $81.3 million. Descartes reports another record-breaking quarter
- Positive Sentiment: Recurring services revenue remains the core growth engine. Services revenue, representing 94% of total revenue, rose 13% year over year. Descartes also ended the quarter with $401.1 million in cash and repurchased approximately $24.3 million of stock during the quarter.
- Positive Sentiment: Recent acquisitions broaden the company’s growth opportunities. The purchases of Transportation Applied Intelligence Software and Extensiv, totaling approximately $219 million, expand Descartes’ transportation-management, warehouse-management and fulfillment capabilities.
- Neutral Sentiment: Short-interest data showed zero reported shares short. While this suggests limited evidence of bearish positioning, the figure may reflect incomplete or unreliable data and is not a significant standalone catalyst.
- Negative Sentiment: Acquisition execution remains a risk. Integrating the newly acquired businesses could create costs or operational challenges, and the transactions reduce cash available for other investments or buybacks.
The Descartes Systems Group Company Profile
The Descartes Systems Group Inc is a Canadian technology company that provides cloud-based logistics and supply chain management software. Its platform helps businesses manage the movement of goods, shipments, vehicles and trade-related information across complex supply chains.
The company’s offerings include transportation management, route planning and optimization, shipment tracking, telematics, freight matching, customs and regulatory compliance, logistics messaging, and electronic connectivity among shippers, carriers, brokers, manufacturers and other supply chain participants.
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