Intact Investment Management Inc., a prominent institutional investor, recently reduced its holdings in Lightspeed Commerce Inc. by 51.6% during the first quarter of the financial year, according to its disclosure with the Securities and Exchange Commission (SEC). The company sold 278,790 shares, resulting in a remaining ownership of 261,600 shares or approximately 0.17% of Lightspeed Commerce’s total stock value. At the end of the most recent quarter in September 10, 2023, Intact Investment Management Inc.’s stake was valued at $3,977,000.
On August 3rd, Lightspeed Commerce announced its earnings results for the same quarter. Despite analysts’ consensus estimates that predicted an EPS loss of ($0.23), the company reported a better-than-expected EPS loss of ($0.14), exceeding expectations by $0.09. These results indicate that Lightspeed Commerce performed well and outperformed market projections during this period.
However, it is important to note that Lightspeed Commerce still faces challenges in terms of profitability indicators. The company’s net margin stands at a negative percentage of 132.94%, indicating that its expenses exceed revenue generation significantly. Additionally, there is a negative return on equity of 3.94%. These figures suggest that although Lightspeed Commerce has managed to surpass some predictions concerning EPS loss, it still struggles with overall profitability and efficiency.
In terms of revenue generation, Lightspeed Commerce reported $209.09 million for the quarter under review— which surpassed analysts’ expectations of $197.30 million—highlighting strong performance in sales revenue. This positive outcome may indicate increasing demand for its cloud-based software subscriptions and payment solutions among small and midsize businesses worldwide.
Lightspeed Commerce operates primarily in North America, Europe, the United Kingdom, Australia, New Zealand, and other international markets where it provides Software as a Service (SaaS) platforms to facilitate consumer engagement, operational management, and payment acceptance. The company specifically caters to retailers, restaurants, and golf course operators in these regions.
Looking ahead, equities researchers predict that for the current fiscal year, Lightspeed Commerce is set to post -0.63 EPS. While uncertainty remains regarding the company’s future financial performance, it is worth considering the potential impact of its cloud-based solutions on small and midsize businesses globally.
As Intact Investment Management Inc. adjusts its position in Lightspeed Commerce with a substantial reduction in stock ownership, investors will closely monitor further developments within the company. Nonetheless, Lightspeed Commerce continues to serve as a noteworthy player in the market for cloud-based software subscriptions and payment solutions for various industries on an international scale.
Changes in Hedge Fund Holdings and Analyst Insight: Lightspeed Commerce Inc.
Lightspeed Commerce Inc. has seen modifications in the holdings of several hedge funds and other institutional investors. Vanguard Group Inc., for example, increased its holdings in the company by 9.3% during the third quarter, now owning 4,634,517 shares worth $81,475,000. Artisan Partners Limited Partnership also saw growth in their holdings by 32.5% during the first quarter, bringing their total to 4,313,990 shares worth $65,592,000. FMR LLC experienced a significant increase of 1,847.9% in their holdings during the first quarter and currently owns 4,199,338 shares valued at $63,836,000.
Additionally, Royal Bank of Canada witnessed a substantial growth of 249.8% in its holdings during the first quarter and now owns 3,280,715 shares valued at $99,9640 million. Wellington Management Group LLP also added to its holdings with an increase of 13.3% during the first quarter and currently holds 2,645,493 shares valued at $40,1590 million. Hedge funds and other institutional investors now own approximately 51.98% of Lightspeed Commerce’s stock.
On September 10th NYSE LSPD opened at $15.80 per share with a fifty-day simple moving average of $16.62 and a two hundred-day simple moving average of $15.26. The company has a market cap of $2.40 billion and a P/E ratio of -2.35 with a beta of 2.36 indicating higher volatility.
Several equities research analysts have weighed in on Lightspeed Commerce’s stock recently. JPMorgan Chase & Co., for instance lowered their target price from $18 to $17 while giving it an “underweight” rating in their report on August 22nd. On the other hand,BMO Capital Markets increased their target price from $19 to $21 and provided the company with an “outperform” rating in a report on August 4th. Similarly, Scotiabank boosted their target price from $24 to $25 and also rated the company as “outperform” on August 4th. Meanwhile, Morgan Stanley raised their target price from $17 to $18 while rating it as “equal weight” on the same day.
Overall, Lightspeed Commerce has received a consensus rating of “Moderate Buy” with an average target price of $20.25, based on data from Bloomberg.com. These figures indicate that despite some analysts giving a sell or hold rating, many see potential for growth in the company’s stock.
With various hedge funds and institutional investors modifying their holdings of Lightspeed Commerce and analysts providing different insights, it will be interesting to see how the company performs in the coming months. Investors should remain cautious and evaluate all available information before making any investment decisions regarding this stock.