Zacks Investment Research Downgrades CSG Systems International (CSGS) to Hold

Zacks Investment Research cut shares of CSG Systems International (NASDAQ:CSGS) from a buy rating to a hold rating in a research note released on Friday morning.

According to Zacks, “CSG Systems International Inc. is a leading provider of outsourced billing, customer care and print and mail solutions and services supporting the North American cable and direct broadcast satellite markets. CSG’s solutions support some of the world’s largest and most innovative providers of bundled multi-channel video, Internet, voice and IP-based services. CSG’s unique combination of solutions, services and expertise ensure that cable and satellite operators can continue to rapidly launch new service offerings, improve operational efficiencies and deliver a high-quality customer experience in a competitive and ever-changing marketplace. “

A number of other research analysts have also weighed in on CSGS. ValuEngine raised CSG Systems International from a sell rating to a hold rating in a report on Monday, February 4th. BidaskClub lowered CSG Systems International from a hold rating to a sell rating in a report on Tuesday, December 4th. Finally, TheStreet lowered CSG Systems International from a b- rating to a c+ rating in a report on Tuesday, December 18th. Three investment analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. CSG Systems International has an average rating of Hold and an average price target of $47.33.

CSG Systems International stock opened at $40.93 on Friday. CSG Systems International has a 12 month low of $30.40 and a 12 month high of $48.82. The company has a debt-to-equity ratio of 0.98, a current ratio of 1.71 and a quick ratio of 2.61. The company has a market cap of $1.37 billion, a PE ratio of 15.68 and a beta of 0.99.

CSG Systems International (NASDAQ:CSGS) last released its quarterly earnings results on Wednesday, February 6th. The technology company reported $0.83 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.67 by $0.16. CSG Systems International had a return on equity of 24.07% and a net margin of 7.56%. The business had revenue of $231.70 million during the quarter, compared to analysts’ expectations of $228.30 million. During the same quarter in the prior year, the business earned $0.62 earnings per share. The company’s quarterly revenue was up 12.9% compared to the same quarter last year. As a group, sell-side analysts anticipate that CSG Systems International will post 2.72 EPS for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, March 29th. Investors of record on Thursday, March 14th will be issued a dividend of $0.2225 per share. This represents a $0.89 dividend on an annualized basis and a yield of 2.17%. The ex-dividend date of this dividend is Wednesday, March 13th. This is a positive change from CSG Systems International’s previous quarterly dividend of $0.21. CSG Systems International’s dividend payout ratio is currently 32.18%.

A number of hedge funds have recently made changes to their positions in the stock. Martingale Asset Management L P grew its holdings in CSG Systems International by 21.2% during the fourth quarter. Martingale Asset Management L P now owns 141,013 shares of the technology company’s stock worth $4,481,000 after acquiring an additional 24,701 shares during the period. Bank of New York Mellon Corp grew its holdings in CSG Systems International by 4.6% during the fourth quarter. Bank of New York Mellon Corp now owns 994,620 shares of the technology company’s stock worth $31,599,000 after acquiring an additional 43,935 shares during the period. California Public Employees Retirement System grew its holdings in CSG Systems International by 19.6% during the fourth quarter. California Public Employees Retirement System now owns 101,175 shares of the technology company’s stock worth $3,214,000 after acquiring an additional 16,577 shares during the period. 361 Capital LLC grew its holdings in CSG Systems International by 637.2% in the fourth quarter. 361 Capital LLC now owns 73,705 shares of the technology company’s stock valued at $2,342,000 after purchasing an additional 63,707 shares during the last quarter. Finally, Oregon Public Employees Retirement Fund acquired a new stake in CSG Systems International in the fourth quarter valued at $403,000. 99.04% of the stock is currently owned by hedge funds and other institutional investors.

CSG Systems International Company Profile

CSG Systems International, Inc provides business support solutions primarily to the communications industry in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company's services include Advanced Convergent Platform, a billing and customer care platform for cable and satellite providers; Ascendon, a software-as-a-service cloud-based platform that provides a trusted path to digital transformation; and Singleview solution to deliver real-time charging services.

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