Zacks Investment Research upgraded shares of CA Inc. (NASDAQ:CA) from a hold rating to a buy rating in a report released on Monday, October 30th. The brokerage currently has $37.00 price objective on the technology company’s stock.
According to Zacks, “CA is a leading IT management software company. Although the company did not reported encouraging second-quarter results, its upbeat revenue guidance for fiscal 2018 makes us optimistic about its growth prospect. We are positive about CA’s acquisition strategy, which has enhanced its IT management, software and services portfolio. Moreover, we believe that the diversity of its products and the increased efficiency offered by them will attract customers across sectors, lending stability to its business model. Additionally, CA’s “go to market” sales strategy integrates the commercial functions of sales, marketing, brand management, pricing and consumer insight, which helps it in lowering costs, thereby improving the bottom line. Nonetheless, intensifying competition from peers, an uncertain economic environment and currency headwinds are other concerns. Notably, the stock has underperformed the industry in the last one year.”
Other research analysts have also recently issued research reports about the stock. Credit Suisse Group AG reissued a neutral rating and set a $34.00 target price on shares of CA in a report on Tuesday, September 5th. Mizuho reissued a hold rating and set a $34.00 target price on shares of CA in a report on Wednesday, October 25th. Royal Bank Of Canada reissued a hold rating and set a $32.00 target price on shares of CA in a report on Monday, August 21st. Barclays PLC reaffirmed an equal weight rating and issued a $36.00 price objective (up previously from $35.00) on shares of CA in a report on Wednesday, August 9th. Finally, BidaskClub cut shares of CA from a sell rating to a strong sell rating in a report on Wednesday, August 2nd. Four analysts have rated the stock with a sell rating, eleven have assigned a hold rating and six have given a buy rating to the company’s stock. CA currently has a consensus rating of Hold and a consensus price target of $33.67.
CA (NASDAQ:CA) traded down $0.13 during trading on Monday, reaching $32.32. 1,437,900 shares of the company were exchanged, compared to its average volume of 2,588,865. The company has a debt-to-equity ratio of 0.42, a current ratio of 1.24 and a quick ratio of 1.24. CA has a 12 month low of $30.01 and a 12 month high of $36.54. The stock has a market cap of $13,581.73, a price-to-earnings ratio of 14.89, a P/E/G ratio of 4.33 and a beta of 0.74.
CA (NASDAQ:CA) last issued its quarterly earnings data on Wednesday, October 25th. The technology company reported $0.62 earnings per share (EPS) for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.62. The company had revenue of $1.03 billion for the quarter, compared to analyst estimates of $1.05 billion. CA had a net margin of 17.83% and a return on equity of 15.74%. CA’s revenue was up 1.6% compared to the same quarter last year. During the same period last year, the company posted $0.67 earnings per share. equities analysts predict that CA will post 2.25 EPS for the current year.
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The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 12th. Stockholders of record on Thursday, November 30th will be issued a $0.255 dividend. The ex-dividend date of this dividend is Wednesday, November 29th. This represents a $1.02 annualized dividend and a dividend yield of 3.16%. CA’s dividend payout ratio is currently 58.62%.
In related news, insider Michael P. Gregoire sold 71,235 shares of the company’s stock in a transaction that occurred on Monday, September 11th. The shares were sold at an average price of $33.38, for a total transaction of $2,377,824.30. Following the sale, the insider now directly owns 285,652 shares of the company’s stock, valued at approximately $9,535,063.76. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Jacob Lamm sold 16,349 shares of the stock in a transaction that occurred on Monday, September 11th. The shares were sold at an average price of $33.45, for a total transaction of $546,874.05. Following the completion of the sale, the executive vice president now directly owns 45,483 shares in the company, valued at $1,521,406.35. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 112,664 shares of company stock worth $3,742,058. Company insiders own 0.90% of the company’s stock.
Institutional investors have recently modified their holdings of the company. Northwestern Mutual Wealth Management Co. boosted its holdings in shares of CA by 26.2% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 3,148 shares of the technology company’s stock valued at $108,000 after buying an additional 654 shares in the last quarter. Bessemer Group Inc. boosted its holdings in shares of CA by 419.6% in the 2nd quarter. Bessemer Group Inc. now owns 3,871 shares of the technology company’s stock valued at $134,000 after buying an additional 3,126 shares in the last quarter. D.A. Davidson & CO. boosted its holdings in shares of CA by 4.2% in the 2nd quarter. D.A. Davidson & CO. now owns 4,227 shares of the technology company’s stock valued at $145,000 after buying an additional 169 shares in the last quarter. CENTRAL TRUST Co boosted its holdings in shares of CA by 7.4% in the 2nd quarter. CENTRAL TRUST Co now owns 4,609 shares of the technology company’s stock valued at $159,000 after buying an additional 319 shares in the last quarter. Finally, AT Bancorp acquired a new position in shares of CA in the 2nd quarter valued at $165,000. Institutional investors and hedge funds own 68.53% of the company’s stock.
CA, Inc (CA) is engaged in providing software solutions enabling customers to plan, develop, manage and secure applications and enterprise environments across distributed, cloud, mobile and mainframe platforms. The Company operates through three business segments: Mainframe Solutions, Enterprise Solutions and Services.
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