What Happened?
Shares of supply chain software provider Manhattan Associates (NASDAQ: MANH) jumped 2.4% in the morning session after Truist Securities raised its price target on the company to $240 from $230 while keeping its Buy rating.
The positive analyst action came amid wider investor interest in artificial intelligence stocks. The software sector saw gains as market players focused on companies tied to the AI boom. This aligned with the company's own focus, as Manhattan Associates had been noted for its work on AI for the retail industry, fitting into the broader positive market mood.
After the initial pop the shares cooled down to $171.52, up 2.5% from previous close.
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What Is The Market Telling Us
Manhattan Associates’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 11 months ago when the stock dropped 25.6% on the news that the company reported weak fourth-quarter results: Its revenue guidance for next year suggests a significant slowdown in demand, and its full-year revenue guidance fell short of Wall Street's estimates.
Moving down the income statement, full-year EPS guidance also came in below expectations. On the other hand, MANH beat EPS expectations on revenue, which came in slightly ahead of Wall Street's estimates. Overall, this was a weaker quarter, with the outlook weighing on shares.
Manhattan Associates is up 2.5% since the beginning of the year, but at $171.52 per share, it is still trading 41.9% below its 52-week high of $295.10 from January 2025. Investors who bought $1,000 worth of Manhattan Associates’s shares 5 years ago would now be looking at an investment worth $1,639.
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