State of Michigan Retirement System showed optimistic signs as it raised its stake in shares of SS&C Technologies Holdings, Inc. (NASDAQ: SSNC) by 18.2% in the fourth quarter, according to recent disclosure with the Securities and Exchange Commission (SEC). The Fund owned a whopping 11,670 shares of the technology company’s stock after purchasing an additional 1,800 shares during that quarter. Such a move proved beneficial as State of Michigan Retirement System’s holdings in SS&C Technologies reached $608,000 as of its most recent filing with the SEC.
The company specializes in developing and providing software solutions for financial services and healthcare industries. Its geographical segments include the United States, Europe, the Middle East and Africa, Asia Pacific and Japan, Canada, and the Americas. It has been continuously performing well in generating revenue quarterly within these areas.
Recently, SS&C Technologies presented impressive results on Tuesday, February 7th when they issued their quarterly earnings data. The reports reveal an EPS worth $1.16 for the quarter; this was quite remarkable as it surpassed analysts’ consensus estimates of $1.03 by $0.13. The firm’s 2020 Q4 revenue generated up to $1.34 billion compared to the consensus estimate of $1.33 billion. Another commendable feat was seen in SS&C Technologies’ net margin which had a figure of 12.31%, showcasing substantial growth for shareholders.
In contrast to last year’s similar quarter performance where they earned $1.16 EPS; hence growth is experienced which makes research analysts anticipate that SS&C Technologies will post an EPS worth approximately 4.41 for the current year.
To conclude, SS&C Technologies’ performance portrays impressive statistics as the year has rolled out amidst all economic shocks experienced globally due to the COVID-19 pandemic outbreak and other market-related turbulences; thus proving encouraging grounds for investors willing to diversify their portfolios in the long term.
Institutional Investors Increasingly Drawn to SS&C Technologies as Company’s Stock Value Rises
SS&C Technologies Holdings, Inc. continues to attract interest from institutional investors, as several hedge funds have recently purchased and sold shares of the technology company’s stock. BlackRock Inc. now owns 25,067,431 shares of the company’s stock valued at $1,196,968,000 after an additional purchase of 1,809,055 shares during the last quarter. Pzena Investment Management LLC and Diamond Hill Capital Management Inc. also increased their position in SS&C Technologies by 19.9% and 29%, respectively, during the third quarter of last year. Similarly, Capital World Investors bought a new stake in shares worth approximately $103 million in Q1 this year and Boston Partners elevated its holdings by 15%. Overall, institutional investment has put the ownership of approximately 83% of SS&C assets under portfolio management.
Shares of SS&C Technologies opened at $57.48 on Friday with a market cap value of $14.34 billion due to its development and provision of software solutions to financial services and healthcare industries worldwide working across geographical segments including the United States, Asia Pacific, and Japan amongst others. The company also recently disclosed its quarterly dividend with shareholders receiving $0.20 per share; paying out a dividend yield rate of 1.39%.
Several investment analysts have weighed in positively on SSNC with DA Davidson increasing their price target from $70 to $74 whilst rating it a “buy” earlier this year in January – this was echoed by Needham & Company LLC who boosted their price objective further once again to $76 whilst maintaining a “buy” rating for the company during February earlier this year.
SS&C Technologies appears poised for further growth as its products continue being sought after within financial and healthcare sectors globally in tandem with institutional investor confidence growing resulting in driving up the value of SSNC stocks closing with a P/E ratio of 23:18 with mixed ratings according to Bloomberg.com averaging out to “Buy” status with a target price of $68.25.
