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Valued at a market cap of $20.6 billion, PTC Inc. (PTC) provides software solutions and services that aid manufacturing companies in designing, operating, and managing products. The Boston, Massachusetts-based company offers a comprehensive portfolio of software solutions comprising computer-aided design modeling, product lifecycle management, data orchestration, and experience creation products.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and PTC fits right into that category.
Shares of PTC are trading 11.3% below their 52-week high of $194.24, which they hit on Mar. 21. The computer software company has declined 1.2% over the past three months, lagging behind the broader Nasdaq Composite’s ($NASX) marginal gain over the same time frame.
Moreover, in the longer term, PTC stock is down 1.6% on a YTD basis, lagging behind NASX’s 17.8% gains. Shares of PTC have declined 24.2% over the past 52 weeks, underperforming NASX’s 28% returns over the same time frame.
To confirm its bearish trend, PTC has been trading below its 200-day and 50-day moving average since late August.
Shares of PTC fell more than 1% following its Q3 earnings release on Jul. 31. The company reported revenue of $518.60 million, which fell short of the Street forecasts of $533 million. The company matched the earnings estimate of $0.98. PTC expects full-year earnings in the range of $4.85 to $5.21 per share, with revenue ranging from $2.27 billion to $2.32 billion.
PTC has lagged behind its rival Autodesk, Inc. (ADSK), which gained 24.4% over the past 52 weeks and 8.4% on a YTD basis.
Despite PTC’s underperformance, analysts remain optimistic about its prospects. The stock has a consensus rating of “Strong Buy” from 17 analysts in coverage, and the mean price target of $201.18 suggests a 16.8% premium to its current levels.
On the date of publication, Rashmi Kumari 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.
