SS&C Technologies Holdings Inc. (NASDAQ: SSNC) stock fell -1.45% on Friday to $51.06 against a previous-day closing price of $51.81. With 1.29 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.44 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $51.89 whereas the lowest price it dropped to was $50.93. The 52-week range on SSNC shows that it touched its highest point at $84.85 and its lowest point at $51.77 during that stretch. It currently has a 1-year price target of $76.40. With its current market cap of 13.15 billion, SSNC has annualized dividend of $0.80 while the current yield stands at 1.57%. Beta for the stock currently stands at 1.46.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of SSNC was down-trending over the past week, with a drop of -4.69%, but this was down by -13.09% over a month. Three-month performance dropped to -11.71% while six-month performance fell -33.41%. The stock lost -26.45% in the past year, while it has lost -37.72% so far this year. A look at the trailing 12-month EPS for SSNC yields 2.69 with Next year EPS estimates of 5.35. For the next quarter, that number is 1.19. This implies an EPS growth rate of 27.60% for this year and 10.70% for next year. EPS is expected to grow by 7.87% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 36.30%.
Float and Shares Shorts:
At present, 254.90 million SSNC shares are outstanding with a float of 222.88 million shares on hand for trading. On Jul 14, 2022, short shares totaled 2.95 million, which was 1.16% higher than short shares on Jun 14, 2022. In addition to Mr. William C. Stone as the firm’s Founder, Chairman & CEO, Mr. Rahul Kanwar serves as its Pres & COO.
Through their ownership of 86.61% of SSNC’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 45.12% of SSNC, in contrast to 40.63% held by mutual funds. Shares owned by individuals account for 24.48%. As the largest shareholder in SSNC with 7.89% of the stake, The Vanguard Group, Inc. holds 20,128,740 shares worth 20,128,740. A second-largest stockholder of SSNC, Janus Henderson Investors US LLC, holds 14,859,932 shares, controlling over 5.83% of the firm’s shares. Select Equity Group LP is the third largest shareholder in SSNC, holding 10,444,122 shares or 4.10% stake. With a 3.40% stake in SSNC, the Janus Henderson Enterprise Fund is the largest stakeholder. A total of 8,676,112 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.51% of SSNC stock, is the second-largest Mutual Fund holder. It holds 6,404,636 shares valued at 357.12 million. BlackRock Equity Dividend Fund holds 2.26% of the stake in SSNC, owning 5,765,716 shares worth 321.5 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SSNC since 12 analysts follow the stock currently. There are 8 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 3 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With SSNC analysts setting a high price target of $83.58 and a low target of $65.00, the average target price over the next 12 months is $76.46. Based on these targets, SSNC could surge 63.69% to reach the target high and rise by 27.3% to reach the target low. Reaching the average price target will result in a growth of 49.75% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. SSNC will report FY 2022 earnings on 02/09/2023. Analysts have provided yearly estimates in a range of $5.35 being high and $4.77 being low. For SSNC, this leads to a yearly average estimate of $4.87. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. SS&C Technologies Holdings Inc. surprised analysts by -$0.07 when it reported $1.10 EPS against a consensus estimate of $1.17. The surprise factor in the prior quarter was -$0.00. Based on analyst estimates, the high estimate for the next quarter is $1.37 and the low estimate is $1.16. The average estimate for the next quarter is thus $1.20.
Dividends & Yield:
In terms of dividends, SSNC has a current ratio of $0.8, which is $0.8 over the trailing 12-months, while a dividend of $0.46 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and SSNC currently yields $1.57. In the past year, SSNC’s dividend yield has been $1.57, but when looking at the stock over the past five years, its yield has been $0.76. Accordingly, SSNC has a current buyback yield of $2.56. This was $2.56 for the TTM.
Summary of Insider Activity:
Insiders traded SSNC stock several times over the past three months with 4 Buys and 4 Sells. In these transactions, 200,000 shares were bought while 200,000 shares were sold. The number of buy transactions has increased to 5 while that of sell transactions has risen to 5 over the past year. The total number of shares bought during that period was 200,031 while 310,000 shares were sold.