Shares of CSG Systems International (CSG) are demonstrating significant upward momentum, fueled by a critical technical breakout and reinforced by a wave of positive analyst sentiment following a robust quarterly earnings report.
Impressive Quarterly Results Drive Momentum
The company’s strong performance is rooted in its second-quarter 2025 financial results, released on August 6. CSG posted non-GAAP earnings per share of $1.16, substantially surpassing the consensus estimate of $1.04. Total revenue climbed to $297.1 million, marking a 2.3% year-over-year increase. In a move highlighting its commitment to shareholder returns, the company’s board also declared a quarterly cash dividend of $0.32 per share.
A Key Technical Breakthrough
This fundamental strength has been mirrored in the market’s technical picture. CSG’s stock recently achieved a major milestone by breaking through its 200-day moving average, a key indicator watched by traders for signs of a sustained trend change. The stock pierced this level, situated at $62.56, and continues to trade higher, currently showing a gain of 0.8 percent and confirming a bullish technical posture.
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Wall Street Responds with Higher Targets
The combination of strong fundamentals and technical strength has prompted several equity research firms to revise their outlooks upward. Analysts at Stifel Nicolaus raised their price target to $70.00 from $66.00, maintaining their “Buy” recommendation. In an even more optimistic assessment, Northland Securities reaffirmed its “Outperform” rating alongside an $80.00 price target. The collective average price target from analysts now stands at approximately $71.29.
Institutional Investors Show Conviction
The optimism extends beyond analysts to major institutional investors, whose substantial purchases provide a strong vote of confidence in CSG’s long-term trajectory in the software and telecommunications sector. Notably, Lazard Asset Management aggressively expanded its stake by 75.7% during the second quarter, building a position now valued at $9.5 million. The California State Teachers’ Retirement System (CalSTRS) also increased its holdings by 0.9%. This institutional activity is significant, with over 91% of the company’s shares held by such entities, underscoring deep-seated belief in its future prospects.
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