DXC Technology (DXC) – Investment Analysts’ Recent Ratings Changes

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DXC Technology (NYSE: DXC) has recently received a number of price target changes and ratings updates:

  • 11/7/2018 – DXC Technology had its “hold” rating reaffirmed by analysts at Cantor Fitzgerald. They now have a $70.00 price target on the stock. They wrote, “. We maintain our Neutral rating on DXC and lower our 12-month PT to $70 from $87. We continue to look for signs pointing to consistent organic growth. DXC’s results missed top-line projections, but topped non-GAAP EPS estimates, as solid margin expansion continued. Revenues fell by mid-single digits organically in constant currency (cc). We will continue to evaluate the projected targets and look for signs of a return to organic growth.””
  • 11/2/2018 – DXC Technology was downgraded by analysts at ValuEngine from a “sell” rating to a “strong sell” rating.
  • 11/2/2018 – DXC Technology had its price target lowered by analysts at BMO Capital Markets from $110.00 to $95.00. They now have an “outperform” rating on the stock.
  • 10/24/2018 – DXC Technology was downgraded by analysts at ValuEngine from a “hold” rating to a “sell” rating.
  • 10/24/2018 – DXC Technology had its “buy” rating reaffirmed by analysts at BMO Capital Markets.
  • 10/16/2018 – DXC Technology was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “DXC Technology shares have underperformed the industry on a year-to-date basis. Rising interest expenses due to increased debt burden make us cautious about its near-term performance. Moreover, the company operates in the IT and professional services markets, which are dominated by a large number of major companies offering similar services, such as IBM, Amazon and Accenture. However, DXC is benefiting from impressive growth in the cloud business. Following the footsteps of CSC, DXC Technology is also focusing on acquisitions to expedite growth. Additionally, the company’s traction in the cloud and partnerships with HCL, AT&T, VMware and Microsoft are expected to drive growth, going forward.”
  • 10/9/2018 – DXC Technology was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “DXC Technology is benefiting from impressive growth in the cloud business. Following the footsteps of CSC, DXC Technology is also focusing on acquisitions to expedite growth. Additionally, the company’s traction in the cloud and partnerships with HCL, AT&T, VMware and Microsoft are expected to drive growth, going forward.  Moreover, DXC Technology recently completed the spin-off of its U.S. Public Sector (USPS), giving its shareholders 86% of the combined company’s shares. However, rising interest expenses due to increased debt burden make us cautious about its near-term performance. Moreover, the company operates in the IT and professional services markets, which are dominated by a large number of major companies offering similar services, such as IBM, Amazon and Accenture. Shares have underperformed the industry on a year-to-date basis.”
  • 10/4/2018 – DXC Technology is now covered by analysts at Moffett Nathanson. They set a “buy” rating and a $95.00 price target on the stock.

Shares of NYSE DXC traded down $9.00 during mid-day trading on Wednesday, hitting $63.21. The company had a trading volume of 12,172,325 shares, compared to its average volume of 2,052,135. The stock has a market cap of $19.86 billion, a PE ratio of 7.96, a price-to-earnings-growth ratio of 1.20 and a beta of 1.32. DXC Technology Co has a 1 year low of $60.05 and a 1 year high of $107.85. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.95 and a current ratio of 0.95.

DXC Technology (NYSE:DXC) last announced its quarterly earnings results on Tuesday, November 6th. The company reported $2.02 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.96 by $0.06. The company had revenue of $5.01 billion during the quarter, compared to analysts’ expectations of $5.30 billion. DXC Technology had a return on equity of 18.67% and a net margin of 7.74%. The firm’s quarterly revenue was down 8.1% compared to the same quarter last year. During the same period in the previous year, the business earned $1.93 earnings per share. On average, sell-side analysts predict that DXC Technology Co will post 8.12 EPS for the current year.

The business also recently declared a quarterly dividend, which will be paid on Tuesday, January 15th. Stockholders of record on Wednesday, December 5th will be given a $0.19 dividend. This represents a $0.76 annualized dividend and a dividend yield of 1.20%. The ex-dividend date is Tuesday, December 4th. DXC Technology’s dividend payout ratio (DPR) is presently 9.57%.

In other news, EVP William L. Deckelman, Jr. sold 2,394 shares of DXC Technology stock in a transaction on Friday, August 24th. The stock was sold at an average price of $90.02, for a total value of $215,507.88. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO John M. Lawrie sold 2,500 shares of DXC Technology stock in a transaction on Thursday, September 27th. The shares were sold at an average price of $94.15, for a total value of $235,375.00. The disclosure for this sale can be found here. Over the last quarter, insiders sold 181,158 shares of company stock valued at $16,526,731. 0.65% of the stock is owned by company insiders.

Hedge funds and other institutional investors have recently made changes to their positions in the company. Columbia Asset Management bought a new stake in DXC Technology during the third quarter valued at $166,000. LSV Asset Management boosted its stake in DXC Technology by 39.5% during the third quarter. LSV Asset Management now owns 1,375,920 shares of the company’s stock valued at $128,676,000 after buying an additional 389,592 shares during the period. ING Groep NV boosted its stake in DXC Technology by 75.8% during the third quarter. ING Groep NV now owns 53,595 shares of the company’s stock valued at $5,012,000 after buying an additional 23,100 shares during the period. Fagan Associates Inc. boosted its stake in DXC Technology by 4.0% during the third quarter. Fagan Associates Inc. now owns 36,672 shares of the company’s stock valued at $3,430,000 after buying an additional 1,410 shares during the period. Finally, Bessemer Group Inc. boosted its stake in DXC Technology by 150.2% during the third quarter. Bessemer Group Inc. now owns 5,688 shares of the company’s stock valued at $532,000 after buying an additional 3,415 shares during the period. Institutional investors own 85.40% of the company’s stock.

DXC Technology Company, together with its subsidiaries, provides information technology services and solutions primarily in North America, Europe, Asia, and Australia. It operates through three segments: Global Business Services (GBS), Global Infrastructure Services (GIS), and United States Public Sector (USPS).

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