SS&C Technologies’ price movement

SS&C Technologies (SSNC) has a market cap of $7.2 billion. SS&C’s YTD (or year-to-date) price movement has been rising quarter-over-quarter in 2015. After the company’s 3Q15 earnings report, it rose by 0.4% to close at $74.5 per share as of November 2, 2015, with a rise in revenue of 32.0% in 3Q15. The company’s price movement on a weekly, monthly, and YTD basis is 0.7%, 3.6%, and 28.0%, respectively.

SS&C Technologies’ Earnings Rose after 3Q15 Report

The stock broke the support of the 20-day and 50-day moving averages throughout 2015. Currently, the stock trading at 2.3% above the 20-day moving average, 5.5% above the 50-day moving average, and 16.1% above the 200-day moving average.

The PowerShares DWA Technology Momentum ETF (PTF) invests 2.6% of its holdings in SS&C. The ETF tracks an index of US tech firms selected and weighted by price momentum. The YTD price movement of the PTF ETF was 9.0% as of October 30, 2015.

The company’s peers

The competitors of SS&C Technologies (SSNC) and their market caps are:

  • Tableau Software (DATA) at $6.2 billion
  • Manhattan Associates (MANH) at $5.4 billion
  • Paycom Software (PAYC) at $2.3 billion
  • LogMeIn (LOGM) at $1.73 billion

Performance of SS&C Technologies in 3Q15

The company reported a net revenue of $280.9 million in 3Q15, a rise of 32.0% when compared to the net revenue of $212.8 million in 2Q15. The cost of revenue as a percentage of revenue and operating expense as a percentage of revenue rose by 5.9% and 90.5%, respectively, in 3Q15 on a quarterly basis. The net income and EPS (earnings per share) fell to -$34.6 million and -$0.36 per share in 3Q15, respectively, as compared to the net income and EPS of $39.1 million and $0.44 per share in 2Q15.

Meanwhile, cash and cash equivalents fell by 31.0%, and accounts receivables rose by 64.0% in 3Q15. The current ratio fell to 2.14, and the debt-to-equity ratio rose to 1.78 in 3Q15. This is compared to the respective current ratio and debt-to-equity ratio of 5.62 and 0.33 in 2Q15.

Key activities in 3Q15

In 3Q15, the company appointed Bob Shepro as a senior vice president, responsible for a new business unit. The new business unit focused on meeting the unique needs of the private capital market. The company also completed the acquisition of Advent Software, a provider of software and services for the global investment management industry.

Other key activities and events include:

  • Chrysalis Financial selected Precision LM, SS&C’s next generation commercial loan management suite.
  • SS&C announced the acquisition of Citigroup’s Alternative Investor Services business that includes Hedge Fund Services and Private Equity Fund Services, for $425 million, subject to certain adjustments.
  • SS&C acquired Varden Technologies and Primatics Financial for ~$122 million on a cash and debt-free basis from The Carlyle Group.
  • SS&C announced continued growth for SS&C HiPortfolio and Anova among new and existing customers after the acquisition of DST Global Solutions.
  • The company declared a quarterly dividend of $0.125 per share on its common stock.
  • The company launched Evare Data Services Portal, a managed service for financial data acquisition, normalization, transformation, and delivery, serving as a data transformations hub for over 500 financial services firms.

About SS&C Technologies

SS&C provides cloud-based services and software for the global financial services industry. It provides solutions for fund administration, insurance and pension funds, and asset and wealth management accounting and operations.

Latest articles

WeWork is gearing up for an IPO. On Wednesday, the company made its IPO filing with the SEC public and expects to garner $3.5 billion from its IPO.

After FCC Chairman Ajit Pai recommended the approval of the T-Mobile–Sprint merger, Representative David Cicilline urged the FCC to allow public comment.

Cresco Labs (CRLBF) is set to report its Q2 earnings on August 21 after the market closes. The company's stock fell 5.3% yesterday.

Cannabis stocks mostly traded in positive territory today. Supreme Cannabis (FIRE) and Aurora Cannabis (ACB) rose about 9.5% and 5.5%, respectively.

NVIDIA (NVDA) stock soared 6% in today’s trading session as its Q2 earnings for fiscal 2020 beat estimates. However, its guidance missed estimates.

Nio Inc. (NIO) has disrupted the automotive space since 2014 but only made waves in the market since its IPO. Investors have suffered numerous setbacks.