SS&C Technologies Holdings Inc. (SSNC) has reached a new 52-week high, with its stock price soaring to $75.1. This milestone reflects a significant uptrend for the company, which has seen an impressive 1-year change of 35.07%. Investors have shown increased confidence in SS&C Technologies, a global provider of investment and financial software-enabled services and software for the financial services and healthcare industries. The company’s strong performance over the past year has been propelled by strategic acquisitions, robust demand for its software solutions, and a growing customer base, culminating in this latest peak in stock value.
In other recent news, SS&C Technologies Holdings, Inc. made significant strides with the acquisition of Battea-Class Action Services, a prominent figure in securities litigation, for approximately $670 million. This move is expected to bolster SS&C’s earnings and expand its financial recovery services. In another development, SS&C increased its quarterly dividend from $0.24 to $0.25 per share, following a reported growth in net cash from operating activities.
Analysts have responded positively to these developments. RBC Capital has upgraded the price target for SS&C from $72 to $75, maintaining an Outperform rating. Similarly, Needham lifted its price target from $74 to $81, sustaining a Buy rating on the stock.
SS&C’s second-quarter 2024 results exceeded expectations with a record adjusted revenue of $1,452.4 million, surpassing their forecast by $20 million. The company’s adjusted diluted earnings per share (EPS) also saw a year-over-year increase of 17.6%. These positive results were driven by strong performance in the Alternatives, Blue Prism, and Intralinks divisions.
In line with these recent developments, SS&C’s management has expressed an ongoing interest in pursuing mergers and acquisitions that complement its existing operations. The company is also focusing on acquisitions that provide attractive returns and expects to close several smaller deals along with a potential substantial acquisition.
InvestingPro Insights
SS&C Technologies Holdings Inc. (SSNC) has not only achieved a new 52-week high but also presents a compelling financial profile according to InvestingPro data. With a market capitalization of $18.41 billion and a P/E ratio of 26.31, the company is recognized for its substantial gross profit margin of 49.38% over the last twelve months as of Q2 2024. This robust margin is a testament to the company’s efficient operations and strong pricing power. SS&C’s revenue growth has also been steady, showing a 5.19% increase over the last twelve months, which indicates a consistent demand for its services in the financial and healthcare sectors.
InvestingPro Tips highlight that SS&C has raised its dividend for 7 consecutive years, demonstrating a commitment to returning value to shareholders. Additionally, SS&C is expected to see net income growth this year, which could further bolster investor confidence. For those interested in a deeper dive, there are over 10 additional InvestingPro Tips available, including insights on earnings revisions and valuation multiples, which can be found on the InvestingPro platform at https://www.investing.com/pro/SSNC.
Investors considering SS&C Technologies as part of their portfolio will note the stock’s low price volatility, which may appeal to those seeking stable equity investments. Moreover, the company’s impressive return of 23.56% over the last three months aligns with the strong performance highlighted in the article. As SS&C continues to trade near its 52-week high, these InvestingPro Insights offer a richer perspective on the company’s financial health and market position.
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