Tickers: TSX: CSU | OTC: CNSWF
Dateline — November 10, 2025.
Constellation Software’s shares fell to a fresh 52‑week low on Monday despite a broader rebound in Canadian equities, as investors digested last Friday’s Q3 print and a price‑target cut out this morning from BMO Capital Markets. By midday, CSU traded around C$3,275, after touching an intraday low of C$3,262 (new 52‑week low) and as high as C$3,570; the OTC listing (CNSWF) changed hands near US$2,348 within a US$2,348–US$2,506 range. Figures are delayed ~15 minutes. 1
Meanwhile, Canada’s main index rose about 1.1% intraday on signs of progress toward ending the U.S. government shutdown and firmer commodity prices—underscoring how CSU’s slide is stock‑specific rather than macro‑driven. 2
What moved CSU today
BMO cuts price target to C$4,600 (from C$5,400), keeps Outperform. In a note published this morning, BMO cited near‑term multiple pressure tied to AI‑related worries but reiterated its view that Constellation can continue compounding at a mid‑teens CAGR. BMO also highlighted margin expansion across core operations (excluding spin‑offs). The tempered target and emphasis on sentiment headwinds helped keep shares on the back foot. 3
Q3 revenue rose 16% but modestly missed consensus. On Nov. 7, Constellation reported US$2.948B in Q3 revenue (+16% y/y, ~5% organic), net income to common of US$210M (diluted EPS US$9.89), operating cash flow of US$685M (+33% y/y) and free cash flow available to shareholders of US$529M (+46% y/y). A Reuters/Refinitiv brief pegged revenue slightly below the US$2.966B IBES estimate. 4
Dividend reaffirmed. The board declared a US$1.00 quarterly dividend payable Jan. 12, 2026 to shareholders of record Dec. 19, 2025. 4
CSU stock price today: key levels (TSX & OTC)
- TSX: CSU — Latest trade ~C$3,275; day range C$3,262–C$3,570; 52‑week range C$3,262–C$5,300 (new low set today). 1
- OTC: CNSWF — Latest trade ~US$2,348; day range US$2,348–US$2,506; 52‑week range US$2,348–US$3,998.72. 5
Context: The new 52‑week low arrives even as the S&P/TSX Composite rallied today, pointing to an earnings‑and‑valuation debate specific to CSU rather than a market‑wide selloff. 2
Q3 2025: by the numbers (released Nov. 7)
- Revenue:US$2,948M (+16% y/y; ~5% organic, ~3% ex‑FX). 4
- Net income to common:US$210M (+28% y/y). Diluted EPS:US$9.89. 4
- Operating cash flow:US$685M (+33% y/y). FCFA2S:US$529M (+46% y/y). 4
- M&A cadence:US$281M cash consideration closed in Q3; total consideration (incl. deferred)US$415M. 4
- Dividend:US$1.00/share, payable Jan. 12, 2026; record date Dec. 19, 2025. 4
- Street context: Revenue came in a touch below the US$2.966B IBES consensus, according to a Reuters brief. 6
RTTNews summarized the quarter’s growth drivers as acquisition‑led with positive organic contribution, mirroring the company’s disclosure. 7
How to read today’s selloff
Earnings quality vs. expectations. The fundamental print showed robust cash generation and continued deal flow, but a small top‑line shortfall versus consensus left critics focused on valuation at a time when AI narratives are dictating multiples across software. 6
Multiple compression risk. BMO’s cut frames the near‑term risk: even outstanding capital allocation can be overshadowed by a market re‑rating of software assets when investors are reassessing what they’ll pay for growth in an AI‑tilted cycle. The firm nevertheless kept Outperform, underscoring long‑term confidence. 3
Macro isn’t the culprit. With the TSX up on shutdown optimism and commodity strength, CSU’s decline stands out as idiosyncratic—more about post‑earnings digestion and analyst messaging than about risk‑off tape. 2
What to watch next
- Dividend dates approaching:Record Dec. 19, 2025; Pay Jan. 12, 2026. Income funds tracking eligible Canadian dividends often adjust exposures around record dates. 4
- Deal pipeline & organic growth: Management’s hallmark M&A engine remains active; watch for additional vertical‑market software tuck‑ins and whether ~5% organic can be sustained into 2026. 4
- Further Street revisions: This morning’s BMO move could spur other brokers to refresh models and targets following the Q3 update. 3
Bottom line for Nov 10, 2025
CSU closed in on a new 52‑week low intraday as investors looked past strong cash generation and a reaffirmed dividend to focus on a modest revenue miss and a high‑bar valuation climate. If management keeps compounding via disciplined M&A and steady organic growth, pullbacks like today’s can reset expectations without changing the long‑term playbook—but near‑term, the multiple debate will likely dominate. 1
Source Notes
- Intraday quotes, day/52‑week ranges: Reuters company pages for CSU.TO and CNSWF. 1
- Macro/TSX context: Reuters mid‑session Canada markets update. 2
- Q3 financials & dividend: Company press release and PDF. 4
- Consensus comparison (revenue vs. IBES): Reuters brief via Refinitiv. 6
- Analyst action today: BMO price‑target cut and commentary. 3
Disclosure: This article is for informational purposes only and is not investment advice. Always do your own research and consider your financial situation before making investment decisions.
