ePlus (NASDAQ:PLUS) Stock Jumps 13.2% After Better-Than-Expected Earnings

Shares of ePlus inc. (NASDAQ:PLUS) rose 13.2% during mid-day trading on Friday following a better than expected earnings announcement. The company traded as high as $95.35 and last traded at $93.3350. Approximately 19,404 shares traded hands during trading, a decline of 91% from the average session volume of 213,214 shares. The stock had previously closed at $82.43.

The software maker reported $1.82 EPS for the quarter, topping analysts’ consensus estimates of $1.47 by $0.35. The business had revenue of $667.92 million for the quarter, compared to analyst estimates of $636.10 million. ePlus had a net margin of 4.91% and a return on equity of 11.51%.

ePlus Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, December 16th. Investors of record on Tuesday, November 24th will be issued a $0.27 dividend. The ex-dividend date is Tuesday, November 24th. This represents a $1.08 dividend on an annualized basis and a dividend yield of 1.2%. ePlus’s payout ratio is presently 23.63%.

Wall Street Analysts Forecast Growth

Several research analysts have commented on PLUS shares. Zacks Research upgraded ePlus from a “strong sell” rating to a “hold” rating in a report on Friday, July 31st. Weiss Ratings reiterated a “hold (c+)” rating on shares of ePlus in a report on Tuesday, October 6th. Two analysts have rated the stock with a Hold rating. According to MarketBeat, the company currently has an average rating of “Hold”.

Insider Buying and Selling

In other ePlus news, CFO Elaine D. Marion sold 4,842 shares of ePlus stock in a transaction dated Tuesday, October 13th. The stock was sold at an average price of $96.33, for a total value of $466,429.86. Following the transaction, the chief financial officer owned 79,259 shares in the company, valued at $7,635,019.47. The trade was a 5.76% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, COO Darren S. Raiguel sold 470 shares of the business’s stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $93.11, for a total transaction of $43,761.70. Following the completion of the transaction, the chief operating officer owned 67,182 shares of the company’s stock, valued at $6,255,316.02. This represents a 0.69% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 7,500 shares of company stock worth $709,495 in the last three months. 2.20% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. BlackRock Inc. purchased a new position in ePlus during the 2nd quarter worth $337,929,000. Dimensional Fund Advisors LP grew its position in ePlus by 3.8% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,310,378 shares of the software maker’s stock worth $98,604,000 after purchasing an additional 48,158 shares during the last quarter. First Trust Advisors LP grew its position in ePlus by 118.2% during the 1st quarter. First Trust Advisors LP now owns 579,047 shares of the software maker’s stock worth $43,573,000 after purchasing an additional 313,674 shares during the last quarter. Royal Bank of Canada increased its stake in ePlus by 9.6% during the 1st quarter. Royal Bank of Canada now owns 278,636 shares of the software maker’s stock valued at $20,968,000 after purchasing an additional 24,348 shares in the last quarter. Finally, Neumeier Poma Investment Counsel LLC acquired a new position in ePlus during the 2nd quarter valued at approximately $22,888,250. Hedge funds and other institutional investors own 93.80% of the company’s stock.

ePlus Price Performance

The stock’s fifty day simple moving average is $91.82 and its 200-day simple moving average is $85.79. The firm has a market cap of $2.38 billion, a PE ratio of 19.97, a PEG ratio of 1.16 and a beta of 0.95.

About ePlus

ePlus inc. (NASDAQ: PLUS) provides technology solutions, professional services and financing to organizations in the commercial, government, healthcare and education sectors. Through its technology business, the company helps customers plan, implement and manage information technology environments, including data center, networking, cybersecurity, collaboration, cloud and digital infrastructure solutions.

The company also offers managed and professional services, technology consulting, IT asset management, and lifecycle services.