Not a good buy right now: price is in a confirmed downtrend (SMA200 > SMA20 > SMA5) and momentum is still deteriorating (MACD histogram negative and expanding).
Extreme oversold (RSI(6) 7) can trigger a short-term bounce, but with price sitting just below a key support zone (67.36) the risk of a quick flush toward the next support (~62.73) is still elevated.
Options are sending mixed-to-bearish near-term signals (heavy put trading volume + very high IV), suggesting traders are paying up for downside protection.
Fundamentals are solid (latest quarter growth strong), but the tape and sentiment catalysts are not aligned for an impatient “buy-now” entry.
Technical Analysis
Trend: Bearish structure with moving averages stacked negatively (SMA200 > SMA20 > SMA5), indicating sellers remain in control.
Momentum: MACD histogram at -1.808 and negatively expanding = downside momentum is still strengthening.
Mean-reversion setup: RSI(6) ~7.2 is extremely oversold, which increases odds of a reflex bounce, but does not by itself confirm a trend reversal.
Levels: Current 66.53 is slightly below S1 (67.355). If it fails to reclaim/hold that area quickly, S2 at 62.73 is the next notable downside magnet. Overhead pivot resistance is far above (74.84), implying substantial work needed to repair the chart.
Positioning: Open interest put/call of 0.08 is extremely call-heavy (structurally bullish/covered-call style positioning), but today’s volume put/call of 3.46 is decisively bearish for the session (near-term hedging/speculation skewed to puts).
Volatility: 30D IV ~54.45 vs historical vol ~36.9 = options are expensive and implying elevated move risk.
IV percentile ~94 suggests IV is very elevated versus its own history (market pricing in uncertainty); this often coincides with sharp price swings rather than clean trend entries.
Activity: Today’s option volume is ~156.8% of the 30-day average, indicating elevated attention and potentially event/risk-driven positioning.
Technical Summary
Sell
9
Buy
6
Positive Catalysts
with double-digit revenue growth and faster profit/EPS growth.
Neutral/Negative Catalysts
Options flow is bearish on the day (put volume dominance) while implied volatility is very high, consistent with traders paying for downside protection.
Recent trend: price targets were mostly cut in early Dec/Jan (reflecting multiple compression and transport-cycle caution), but ratings largely remain constructive (Outperform/Buy) with a few Equal Weight/Market Perform holds.
Notable changes: Raymond James upgraded to Outperform (Dec 4) while several firms lowered price targets (BMO, Scotiabank, Barclays, Wolfe), and Morgan Stanley has remained more neutral (Equal Weight) with PT adjustments.
Wall Street pros: best-in-class SaaS narrative, margin strength, and potential upside if freight market improves.
Wall Street cons: debate around organic growth re-acceleration, transaction revenue softness tied to shipment volumes, and sector/multiple pressure.
Wall Street analysts forecast DSGX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DSGX is 112.8 USD with a low forecast of 95 USD and a high forecast of 126 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
Wall Street analysts forecast DSGX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DSGX is 112.8 USD with a low forecast of 95 USD and a high forecast of 126 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Buy
2 Hold
0 Sell
Strong Buy
Current: 67.890
Low
95
Averages
112.8
High
126
Current: 67.890
Low
95
Averages
112.8
High
126
Scotiabank
Outperform
downgrade
$115 -> $95
AI Analysis
2026-02-04
New
Reason
Scotiabank
Price Target
$115 -> $95
AI Analysis
2026-02-04
New
downgrade
Outperform
Reason
Scotiabank lowered the firm's price target on Descartes Systems to $95 from $115 and keeps an Outperform rating on the shares. The firm notes software stocks have had a "rough" start to 2026, but notes it sees select opportunities for outperformance within the software category, the analyst states.
Wolfe Research
Scott Group
Outperform
downgrade
$112 -> $102
2026-01-08
Reason
Wolfe Research
Scott Group
Price Target
$112 -> $102
2026-01-08
downgrade
Outperform
Reason
Wolfe Research analyst Scott Group lowered the firm's price target on Descartes Systems to $102 from $112 and keeps an Outperform rating on the shares. The firm said that transport has been stuck in a prolonged and muted cycle with the ISM manufacturing index below 50 for 36 of the past 38 months, and LTL tonnage has been negative year-over-year for 22 of the past 23 months. That said, truckload spot rates have materially outperformed normal seasonality for the past six weeks, the analyst tells investors in a research note.
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