SS&C Technologies (SSNC) Stock Advancing After Pricing Public Offering

NEW YORK (TheStreet) -- Shares of SS&C Technologies (SSNC) are rising 1.11% to $64 on heavy trading volume after the financial software and services company announced the pricing of the 10.5 million shares of common stock in its public offering.

SS&C Technologies priced the 10.5 million shares of its common stock at a public offering price of $61.50 per share.

The company granted underwriters a 30-day option to purchase up to an additional 1.57 million shares of common stock sold in the offering. The offering will close on June 24, 2015.

A portion of the net proceeds and proceeds from debt financing transactions will finance its pending acquisition of Advent Software (ADVS) The remainder will be used for general corporate purposes, the company said.

In February, SS&C Technologies agreed to acquire Advent Software for $2.7 billion in cash.

About 5.3 million shares were traded by 11:45 a.m. Friday, above its average trading volume of about 317,000 shares a day.

Separately, TheStreet Ratings team rates SS&C TECHNOLOGIES HLDGS INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate SS&C TECHNOLOGIES HLDGS INC (SSNC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 5.0%. Since the same quarter one year prior, revenues rose by 10.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • Compared to its closing price of one year ago, SSNC's share price has jumped by 35.02%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SSNC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • SS&C TECHNOLOGIES HLDGS INC reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SS&C TECHNOLOGIES HLDGS INC increased its bottom line by earning $1.50 versus $1.39 in the prior year. This year, the market expects an improvement in earnings ($2.61 versus $1.50).
  • The gross profit margin for SS&C TECHNOLOGIES HLDGS INC is rather high; currently it is at 58.05%. Regardless of SSNC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 12.75% trails the industry average.
  • Despite currently having a low debt-to-equity ratio of 0.45, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.15 is sturdy.
  • You can view the full analysis from the report here: SSNC Ratings Report

More from Markets

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

Flashback Friday: The Market Movers

Flashback Friday: The Market Movers