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Manhattan Associates - AI Stock Analysis

Analysis generated October 22, 2024

Manhattan Associates, Inc. is a technology-focused company specializing in supply chain and omnichannel commerce. Founded in 1990 and headquartered in Atlanta, Georgia, the company provides software solutions aimed at improving logistics, warehouse management, and order fulfillment operations for businesses. With an emphasis on innovation and tailored solutions, Manhattan Associates impacts a wide array of industries including retail, wholesale, and manufacturing.

Fundamental Analysis

The latest revenue figures for Manhattan Associates stand at $265 million for the last quarter. This marks an increase of 4.38% compared to the quarter before, which is a positive indicator of short-term growth. More significantly, on a year-over-year basis, the revenue has surged by an impressive 14.85%. Such data suggests robust ongoing demand for the company’s products and services.

However, the net income paints a slightly more mixed picture. While net income for the last quarter was $53 million—boasting a year-over-year increase of 33.18%—it represents a 1.92% decrease compared to the prior quarter. This slight dip could be a cause for concern and merits close watching.

On the EBITDA front, the numbers are very encouraging. The company reported an EBITDA of $70 million for the last quarter, which is an increase of 17.85% quarter-over-quarter and a 34.50% jump year-over-year. Such growth in EBITDA indicates strong profitability and operational efficiency.

Lastly, the Price-to-Earnings (P/E) ratio is currently at 90.94. This is considered high and may indicate that the stock is overvalued, which could potentially point to a bearish outlook.

One more note of caution comes from insider trading activities. In recent months, there has been a noticeable amount of insider selling, which might be perceived as a lack of confidence in the company's future performance.

Technical Analysis

Manhattan Associates' stock price is currently at $293.53. Impressively, this represents an increase of 6.37% over the past month, indicating a positive short-term trend. On a broader scale, the stock has increased by a significant 59.18% over the last year, underscoring a strong long-term performance.

Despite these positive price movements, some technical indicators suggest caution. The current Simple Moving Average (SMA) over the last 10 days is 299.74, slightly lower than the previous SMA10 of 300.33. This slight decrease hints at a potential downward trend.

Furthermore, the Relative Strength Index (RSI) is currently at 86.4, which places the stock in an overbought condition. This is a bearish signal as it could indicate an upcoming price correction.

Alternative Data Analysis

Examining alternative data sources provides further insights into Manhattan Associates' market situation. Job postings have been stable over the past few months, indicating no significant fluctuation in the company's operational dynamics. Employee sentiment towards the business outlook is currently neutral, showing neither strong optimism nor pessimism.

In terms of customer acquisition, the company's website has around 790,000 visitors without meaningful fluctuations recently, suggesting stability but no growth spurts. Social media engagement remains stagnant with 2,200 followers on Instagram and 9,800 followers on Twitter. The lack of growth in followers, particularly the 0% change on Twitter, may indicate a loss of interest among potential customers.

Lastly, according to AltIndex's AI score, Manhattan Associates has a score of 55. This score, which considers a blend of fundamental, technical, and alternative data, suggests a 'hold' status.

Conclusion and Recommendation

Manhattan Associates presents a mixed bag of indicators for potential investors. The company demonstrates strong revenue growth and profitability, with year-over-year increases in both revenue and EBITDA. However, there are some concerns: the recent decrease in net income quarter-over-quarter, a high P/E ratio indicating potential overvaluation, and insider selling activities.

Technically, the stock has shown robust price performance over both short and long-term horizons. However, caution is advised due to the bearish indications from the SMA10 and the overbought RSI.

Alternative data paints a picture of stability but lacks dynamic growth in aspects like customer engagement and employee sentiment.

Based on the complete analysis, my recommendation for Manhattan Associates' stock is to hold. Investors should monitor upcoming quarterly reports closely for any significant changes in financial performance and keep an eye on technical indicators for further market directions.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.