SS&C Technologies (SSNC) is approaching a key resistance level. If this level is surpassed a breakout could occur.
SSNC provides software products and software-enabled services to a variety of customers primarily in financial services but also healthcare firms. In addition, the company provides portfolio accounting, portfolio management, trading, banking/lending, and other software to asset managers, banks, and financial advisors.
The company is seeing success with its newest products and growing its client base. It was able to leverage algorithmic capabilities and the pandemic into its investment scenarios. On the health side, SSNC launched its flu pilot program, which provides outreach to SS&C Health clients to enhance the rates of flu vaccinations. The company also developed a similar COVAX program that ensured the successful completion of the COVID Vaccine.
SS&C has a healthy balance sheet with $209 million in cash and only $54 million in short-term debt as of the last reported quarter. The firm also has a net margin of 13.4%, which is higher than the industry average. In its most recent quarter, earnings were up 5% year over year, while revenue was flat.
The stock’s trailing P/E is a tad higher at 29.30, but its forward P/E is low at 15.15. SSNC has shown bullish long-term momentum, but mixed medium-term performance over the past few months.
Take a look at the 1-year chart of SSNC below with my added notations:
Chart of SSNC provided by TradingView
During the past few months, SSNC has formed a key level of resistance at the $70 (red) mark. The stock has tested that level several times since January and is currently sitting right under that level again.
A solid close above $70 should lead to higher prices for SSNC, and it’s likely the stock will test its 52-week highs. Therefore, a long trade could be entered on a breakthrough of the $70 level.
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SSNC shares were trading at $68.31 per share on Wednesday morning, down $0.26 (-0.38%). Year-to-date, SSNC has declined -5.88%, versus a 6.30% rise in the benchmark S&P 500 index during the same period.
About the Author: Christian Tharp
I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group and Yolo Publishing. More...
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