Descartes Systems Group (DSGX) Fell on Softer Global Trade and Muted Volume

Conestoga Capital Advisors, an asset management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets continued their momentum that began in early April, reaching new all-time highs in the third quarter. In the quarter, the Conestoga Small Cap Composite returned -1.4% net-of-fees, underperforming the Russell 2000 Growth Index’s impressive 12.2% gain. Most of the Index’s gains come from low-quality stock leadership, where unprofitable, high-beta names have considerably outperformed. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2025.

In its third-quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as The Descartes Systems Group Inc. (NASDAQ:DSGX). Headquartered in Waterloo, Canada, The Descartes Systems Group Inc. (NASDAQ:DSGX) is a leading provider of cloud-based logistics and supply chain solutions. The one-month return of The Descartes Systems Group Inc. (NASDAQ:DSGX) was -5.79%, and its shares lost 8.57% of their value over the last 52 weeks. On October 17, 2025, The Descartes Systems Group Inc. (NASDAQ:DSGX) stock closed at $96.28 per share, with a market capitalization of $8.274 billion.

Conestoga Capital Advisors stated the following regarding The Descartes Systems Group Inc. (NASDAQ:DSGX) in its third quarter 2025 investor letter:

“The Descartes Systems Group Inc. (NASDAQ:DSGX) provides logistics and supply chain management software, including transportation management, customs compliance, routing, and mobility solutions for global customers. The stock traded lower in the quarter as global trade softness and muted shipping volumes reduced demand across its logistics network. The company initiated a 7% reduction in force to bolster margins until trade volumes normalize.”

Is Descartes Systems Group Inc. (DSGX) the Best Mid Cap Tech Stock to Buy Now?

The Descartes Systems Group Inc. (NASDAQ:DSGX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 21 hedge fund portfolios held The Descartes Systems Group Inc. (NASDAQ:DSGX) at the end of the second quarter, compared to 22 in the previous quarter.  Descartes Systems Group Inc. (NASDAQ:DSGX) reported record revenue of $179.8 million for Q2 2025, a 10% increase from last year and a 7% rise from the last quarter. While we acknowledge the risk and potential of The Descartes Systems Group Inc. (NASDAQ:DSGX) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than The Descartes Systems Group Inc. (NASDAQ:DSGX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered The Descartes Systems Group Inc. (NASDAQ:DSGX) and shared the list of best long term growth stocks to buy. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.