The Aspen Technology Inc. (AZPN) shares are trading at higher $126.12 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $119.80.
To add more color to this target, the company’s high over the last year is $142.89 and the low is $73.07. Over the last 52 weeks, AZPN is down -11.74% while the S&P 500 is down -0.18%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, AZPN reported a profit of $116.32 million. Aspen Technology Inc. also saw revenues increase to $132.03 million. In addition, AZPN has free cash flow of $142.34 million as of 03-2020. The company’s EBITDA came in at $51.99 million which compares well with its peers.
AZPN booked profit margins of 39.50%, its Return on Equity (ROE) is 59.30%, and its Return on Assets is 22.60%. All told, it is clear that, AZPN needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. AZPN has a short ratio of 3.58 and outstanding shares of 67.81M.
AZPN has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.44 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 3.35. Aspen Technology Inc. AZPN also noted assets of $1.13 billion at the end of the last quarter. Investors should also keep an eye on sector updates as AZPN has historically followed its peers on positive news.
All told, Aspen Technology Inc. AZPN has strung together solid data and demonstrated underlying fundamentals. At its current valuation, AZPN represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Aspen Technology Inc. AZPN is now commanding a market cap of 8.46B and a float of 67.33M. AZPN is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of AZPN stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in AZPN, either long or short, and we have not been compensated for this article.