The Descartes Systems Group (TSE:DSG) Stock Passes Below 200 Day Moving Average – Should You Sell?

The Descartes Systems Group Inc. (TSE:DSG) (NASDAQ:DSGX)’s stock price crossed below its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of C$124.55 and traded as low as C$87.77. The Descartes Systems Group shares last traded at C$90.42, with a volume of 275,487 shares traded.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on DSG. Barclays upgraded The Descartes Systems Group from a “hold” rating to a “strong-buy” rating in a report on Monday, January 12th. Raymond James Financial raised shares of The Descartes Systems Group from a “hold” rating to a “moderate buy” rating in a research report on Thursday, December 4th. Finally, TD Securities upgraded shares of The Descartes Systems Group to a “strong-buy” rating in a report on Friday, December 5th. Two equities research analysts have rated the stock with a Strong Buy rating and one has issued a Buy rating to the company. According to MarketBeat.com, The Descartes Systems Group presently has a consensus rating of “Strong Buy”.

The Descartes Systems Group Stock Up 1.6%

The company’s 50 day simple moving average is C$111.65 and its 200-day simple moving average is C$124.55. The company has a current ratio of 1.34, a quick ratio of 1.85 and a debt-to-equity ratio of 0.51. The firm has a market cap of C$7.77 billion, a P/E ratio of 50.80, a PEG ratio of 2.39 and a beta of 0.30.

The Descartes Systems Group (TSE:DSG) (NASDAQ:DSGX) last announced its earnings results on Wednesday, December 3rd. The company reported C$0.70 earnings per share for the quarter. The business had revenue of C$263.74 million during the quarter. The Descartes Systems Group had a net margin of 21.80% and a return on equity of 10.65%. Research analysts forecast that The Descartes Systems Group Inc. will post 3.3498285 earnings per share for the current fiscal year.

The Descartes Systems Group Company Profile

The Descartes Systems Group provides a software solution that allows users in the shipping industry to communicate with one another. The core product is the Global Logistics Network, which is best understood as transaction driven. Descartes charges clients to send/receive messages, data, and documents on the GLN (the transactions). Customers typically contract for a monthly minimum over a multiyear period. The GLN platform allows for Descartes to upsell additional software modules as well, typically provided via a software-as-a-service model.