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Canonsburg, Pennsylvania-based ANSYS, Inc. (ANSS) develops and markets engineering simulation software and services for engineers, designers, researchers, and students. With a market cap of $28.4 billion, ANSYS' operations span the Americas, Indo-Pacific, Europe, the Middle East, and Africa.
Companies worth $10 billion or more are generally described as "large-cap stocks," ANSYS fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the software application industry.
ANSS touched its 52-week high of $363.03 on Dec. 4, 2024, and is currently trading 11% below that peak. Meanwhile, ANSS stock has dropped 3.4% over the past three months, outperforming the Technology Select Sector SPDR Fund’s (XLK) 7.6% decline during the same time frame.
ANSYS’ performance looks much grimmer over the longer term. ANSS stock has plunged 5.7% over the past 52-week period, underperforming XLK’s 3.6% gains during the same time frame.
To confirm the recent downturn, ANSS has traded consistently below its 50-day moving average since early February and below its 200-day moving average since early March.
ANSYS’ stock rose 1.1% in the trading session after the release of its better-than-expected Q4 results on Feb. 19. Driven by solid software licence sales and an increase in maintenance and service revenues, ANSYS’ overall topline surged 9.6% year-over-year to $882.2 million, surpassing the Street’s expectations by 1%. Meanwhile, the company delivered an impressive 13.2% year-over-year growth in non-GAAP net income to $391 million and its non-GAAP EPS of $4.44 surpassed the consensus estimates by 11%.
However, ANSYS has also underperformed its peer Autodesk, Inc.’s (ADSK) 4.7% gains over the past 52 weeks.
Despite delivering solid financial results in the recent quarter, analysts remain cautious about ANSYS’ longer-term prospects. The stock has a consensus “Hold” rating among the 12 analysts covering it. ANSS’ mean price target of $355.33 represents a 10% premium to current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
