SS&C Technologies (NASDAQ:SSNC) Updates Q4 Earnings Guidance

by · The Markets Daily

SS&C Technologies (NASDAQ:SSNC – Get Free Report) updated its fourth quarter earnings guidance on Thursday. The company provided earnings per share guidance of $1.29-1.35 for the period, compared to the consensus earnings per share estimate of $1.36. The company issued revenue guidance of $1.46-1.50 billion, compared to the consensus revenue estimate of $1.47 billion. SS&C Technologies also updated its FY 2024 guidance to 5.120-5.180 EPS.

Analyst Ratings Changes

A number of research firms have commented on SSNC. Royal Bank of Canada raised their target price on shares of SS&C Technologies from $75.00 to $86.00 and gave the company an “outperform” rating in a research report on Thursday, September 19th. Needham & Company LLC lifted their price objective on shares of SS&C Technologies from $81.00 to $90.00 and gave the stock a “buy” rating in a research report on Thursday, September 19th. Finally, DA Davidson reaffirmed a “buy” rating and issued a $92.00 price objective on shares of SS&C Technologies in a research report on Thursday, October 10th. Three investment analysts have rated the stock with a hold rating, five have given a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat.com, SS&C Technologies presently has an average rating of “Moderate Buy” and a consensus target price of $73.75.

Read Our Latest Analysis on SS&C Technologies

SS&C Technologies Stock Performance

NASDAQ:SSNC traded down $0.64 during trading hours on Thursday, hitting $75.15. 1,365,068 shares of the company were exchanged, compared to its average volume of 1,025,074. The stock has a market capitalization of $18.59 billion, a price-to-earnings ratio of 29.94 and a beta of 1.38. SS&C Technologies has a 52-week low of $46.61 and a 52-week high of $77.02. The company has a debt-to-equity ratio of 1.01, a current ratio of 1.16 and a quick ratio of 1.16. The company’s 50 day moving average price is $74.43 and its 200-day moving average price is $67.66.

SS&C Technologies (NASDAQ:SSNC – Get Free Report) last released its earnings results on Thursday, July 25th. The technology company reported $1.27 earnings per share for the quarter, topping the consensus estimate of $1.20 by $0.07. The company had revenue of $1.45 billion for the quarter, compared to the consensus estimate of $1.43 billion. SS&C Technologies had a net margin of 12.33% and a return on equity of 17.43%. SS&C Technologies’s revenue was up 6.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.96 EPS. As a group, research analysts forecast that SS&C Technologies will post 4.66 earnings per share for the current year.

SS&C Technologies Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, September 16th. Shareholders of record on Tuesday, September 3rd were paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 1.33%. This is a boost from SS&C Technologies’s previous quarterly dividend of $0.24. The ex-dividend date of this dividend was Tuesday, September 3rd. SS&C Technologies’s payout ratio is presently 39.84%.

SS&C Technologies announced that its Board of Directors has approved a stock repurchase plan on Thursday, July 25th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the technology company to purchase up to 5.4% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s management believes its stock is undervalued.

Insider Activity at SS&C Technologies

In related news, Director Michael Jay Zamkow sold 19,000 shares of the business’s stock in a transaction on Friday, September 20th. The shares were sold at an average price of $75.97, for a total value of $1,443,430.00. Following the completion of the transaction, the director now directly owns 22,576 shares in the company, valued at $1,715,098.72. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. In other SS&C Technologies news, Director Normand A. Boulanger sold 130,000 shares of the company’s stock in a transaction on Monday, September 16th. The shares were sold at an average price of $75.38, for a total transaction of $9,799,400.00. Following the completion of the transaction, the director now directly owns 333,576 shares in the company, valued at approximately $25,144,958.88. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Michael Jay Zamkow sold 19,000 shares of the company’s stock in a transaction on Friday, September 20th. The stock was sold at an average price of $75.97, for a total transaction of $1,443,430.00. Following the transaction, the director now owns 22,576 shares of the company’s stock, valued at $1,715,098.72. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 609,690 shares of company stock worth $44,821,055 in the last three months. Company insiders own 15.40% of the company’s stock.

SS&C Technologies Company Profile

(Get Free Report)

SS&C Technologies Holdings, Inc, together with its subsidiaries, provides software products and software-enabled services to financial services and healthcare industries. The company owns and operates technology stack across securities accounting; front-office functions, such as trading and modeling; middle-office functions comprising portfolio management and reporting; back-office functions, such as accounting, performance measurement, reconciliation, reporting, processing and clearing, and compliance and tax reporting; and healthcare solutions consisting of claims adjudication, benefit management, care management, and business intelligence solutions.

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