Converge Technology Solutions (TSE:CTS) Trading Down 13.3% – Here’s Why

Converge Technology Solutions Corp. (TSE:CTS)’s stock price dropped 13.3% during trading on Thursday . The stock traded as low as C$3.40 and last traded at C$3.84. Approximately 283,174 shares changed hands during trading, a decline of 39% from the average daily volume of 467,960 shares. The stock had previously closed at C$4.43.

Analyst Upgrades and Downgrades

CTS has been the topic of a number of recent research reports. TD Securities upgraded shares of Converge Technology Solutions from a “hold” rating to a “buy” rating and cut their price objective for the stock from C$6.00 to C$5.50 in a report on Friday, August 9th. Cormark reduced their price objective on Converge Technology Solutions from C$6.50 to C$5.50 in a research report on Friday, August 9th. Finally, CIBC lowered their price objective on Converge Technology Solutions from C$5.00 to C$4.50 in a research note on Friday, August 9th. Two equities research analysts have rated the stock with a hold rating, five have assigned a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of C$6.43.

Converge Technology Solutions Stock Performance

The company has a quick ratio of 0.68, a current ratio of 1.00 and a debt-to-equity ratio of 99.08. The stock has a market capitalization of C$751.52 million, a P/E ratio of -4.80, a P/E/G ratio of 0.14 and a beta of 1.81. The business has a fifty day moving average price of C$4.48 and a 200-day moving average price of C$4.69.

Converge Technology Solutions (TSE:CTS) last posted its earnings results on Thursday, August 8th. The company reported C$0.19 earnings per share (EPS) for the quarter, beating the consensus estimate of C$0.12 by C$0.07. The business had revenue of C$651.85 million for the quarter, compared to analysts’ expectations of C$645.18 million. Converge Technology Solutions had a negative net margin of 6.10% and a negative return on equity of 33.46%. On average, sell-side analysts expect that Converge Technology Solutions Corp. will post 0.6884058 EPS for the current year.

Converge Technology Solutions Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 10th. Shareholders of record on Tuesday, September 10th were paid a dividend of $0.015 per share. The ex-dividend date was Tuesday, August 27th. This represents a $0.06 dividend on an annualized basis and a yield of 1.56%. Converge Technology Solutions’s dividend payout ratio is presently -7.50%.

Insider Activity

In other news, Senior Officer Greg Berard acquired 10,105 shares of the business’s stock in a transaction that occurred on Tuesday, September 3rd. The stock was bought at an average price of C$4.42 per share, with a total value of C$44,684.31. Insiders own 5.97% of the company’s stock.

About Converge Technology Solutions

Converge Technology Solutions Corp. provides software-enabled IT and cloud solutions in the United States and Canada. Its solutions approach delivers advanced analytics, artificial intelligence, application modernization, cloud, cybersecurity, digital infrastructure, and digital workplace offerings to clients across various industries.