Converge Technology Solutions (TSE:CTS) Trading Down 13.3% - Should You Sell?

Converge Technology Solutions Corp. (TSE:CTS - Get Free Report)'s share price fell 13.3% during mid-day trading on Thursday . The stock traded as low as C$3.40 and last traded at C$3.84. 283,174 shares traded hands during trading, a decline of 39% from the average session volume of 467,960 shares. The stock had previously closed at C$4.43.

Analysts Set New Price Targets

Several brokerages have issued reports on CTS. CIBC dropped their target price on shares of Converge Technology Solutions from C$5.00 to C$4.50 in a report on Friday, August 9th. Cormark dropped their target price on shares of Converge Technology Solutions from C$6.50 to C$5.50 in a report on Friday, August 9th. Finally, TD Securities upgraded shares of Converge Technology Solutions from a "hold" rating to a "buy" rating and dropped their target price for the stock from C$6.00 to C$5.50 in a report on Friday, August 9th. Two research 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 stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of C$6.43.

Converge Technology Solutions Stock Down 23.7 %

The firm has a market capitalization of C$659.78 million, a P/E ratio of -4.50, a PEG ratio of 0.14 and a beta of 1.81. The company has a debt-to-equity ratio of 99.08, a quick ratio of 0.68 and a current ratio of 1.00. The business's fifty day moving average price is C$4.49 and its two-hundred day moving average price is C$4.69.

Converge Technology Solutions (TSE:CTS - Get Free Report) last released its quarterly earnings results on Thursday, August 8th. The company reported C$0.19 earnings per share for the quarter, beating analysts' consensus estimates of C$0.12 by C$0.07. Converge Technology Solutions had a negative net margin of 6.10% and a negative return on equity of 33.46%. The business had revenue of C$651.85 million for the quarter, compared to analysts' expectations of C$645.18 million. Equities analysts expect that Converge Technology Solutions Corp. will post 0.6884058 earnings per share for the current fiscal year.

Converge Technology Solutions Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 10th. Investors of record on Tuesday, September 10th were paid a $0.015 dividend. This represents a $0.06 dividend on an annualized basis and a yield of 1.78%. The ex-dividend date of this dividend was Tuesday, August 27th. Converge Technology Solutions's dividend payout ratio (DPR) is presently -7.50%.

Insider Buying and Selling

In related news, Senior Officer Greg Berard bought 10,105 shares of the stock in a transaction that occurred on Tuesday, September 3rd. The stock was bought at an average cost of C$4.42 per share, for a total transaction of C$44,684.31. 5.97% of the stock is owned by company insiders.

Converge Technology Solutions Company Profile

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.