Why the Hansen share price just roared to a 52-week high

Hansen Technologies Limited (ASX: HSN): buy, hold, sell?

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The Hansen Technologies Limited (ASX: HSN) share price hit a 52-week high of $4.04 this afternoon despite the software billings player not releasing any specific news to the market. More generally Hansen shares have been on a tear ever since the founder-run business announced on May 1 2019 that it is to spend CAD$157 million (A$166m) on acquiring Canadian software solutions business Sigma.

It’s no secret that much of Hansen’s impressive track record of long-term profit and dividend growth has come about via an aggressive acquisition strategy in its core software billings and enterprise services space.

Importantly though this growth has been achieved without a ballooning share count via excess capital raisings or mounting piles of debt. As such earnings per share have grown in line with the acquisitions, as the stock climbed from $1.33 in July 2014 to $4.04 today.

Hansen’s forecast is for FY 2019 profits to come in a little below FY 2018, although forward looking markets are now pricing in the chances of a return to profit growth in FY 202o.

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Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Hansen Technologies. The Motley Fool Australia has recommended Hansen Technologies. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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