DXC Technology Company. (NYSE:DXC) Given Average Recommendation of "Reduce" by Analysts

Key Points

• Analysts remain cautious on DXC Technology: Nine analysts give the stock an average “Reduce” rating, including two sells and seven holds, with an average 12-month price target of $12.21.
• Recent operating results weakened: DXC reported quarterly EPS of $0.40, slightly below estimates, while revenue declined 5% year over year to approximately $3 billion and EPS fell from $0.68 in the prior-year period.
• Institutional ownership is high: Hedge funds and other institutional investors own 96.2% of the stock, with several major investors increasing their positions during the second quarter.

Shares of DXC Technology Company. (NYSE:DXC - Get Free Report) have earned an average rating of "Reduce" from the nine analysts that are currently covering the stock, MarketBeat.com reports. Two analysts have rated the stock with a sell recommendation and seven have given a hold recommendation to the company. The average twelve-month price target among brokerages that have updated their coverage on the stock in the last year is $12.2143.

A number of equities research analysts recently commented on the company. Morgan Stanley set a $12.00 target price on DXC Technology in a research report on Monday, August 3rd. Royal Bank Of Canada reduced their price target on shares of DXC Technology from $16.00 to $14.00 and set a "sector perform" rating for the company in a research report on Friday, July 31st. Stifel Nicolaus decreased their price objective on shares of DXC Technology from $12.00 to $10.50 and set a "hold" rating for the company in a research note on Friday, July 31st. BMO Capital Markets dropped their price objective on shares of DXC Technology from $17.00 to $10.00 and set a "market perform" rating on the stock in a report on Monday, May 11th. Finally, Zacks Research upgraded shares of DXC Technology from a "strong sell" rating to a "hold" rating in a research note on Monday, July 13th.

Institutional Investors Weigh In On DXC Technology

Hedge funds have recently added to or reduced their stakes in the business. Allianz Asset Management GmbH lifted its holdings in shares of DXC Technology by 58.3% in the 2nd quarter. Allianz Asset Management GmbH now owns 1,564,754 shares of the company's stock valued at $13,848,000 after buying an additional 576,353 shares during the period. Amundi boosted its stake in shares of DXC Technology by 1,084.6% in the second quarter. Amundi now owns 539,016 shares of the company's stock worth $4,770,000 after buying an additional 493,514 shares during the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in DXC Technology during the second quarter worth about $317,000. California State Teachers Retirement System grew its holdings in DXC Technology by 762.0% during the second quarter. California State Teachers Retirement System now owns 1,780,133 shares of the company's stock worth $15,754,000 after acquiring an additional 1,573,620 shares during the period. Finally, Endeavor Private Wealth Inc. purchased a new position in DXC Technology during the second quarter valued at approximately $99,000. 96.20% of the stock is owned by hedge funds and other institutional investors.

DXC Technology Price Performance

NYSE DXC opened at $11.64 on Friday. The company has a debt-to-equity ratio of 0.90, a current ratio of 1.41 and a quick ratio of 1.41. The stock's fifty day moving average price is $10.40 and its 200 day moving average price is $10.82. DXC Technology has a 1 year low of $7.90 and a 1 year high of $15.68. The company has a market cap of $1.86 billion, a price-to-earnings ratio of 16.63 and a beta of 0.80.

DXC Technology (NYSE:DXC - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The company reported $0.40 EPS for the quarter, missing analysts' consensus estimates of $0.41 by ($0.01). The firm had revenue of $3 billion for the quarter, compared to analyst estimates of $2.99 billion. DXC Technology had a return on equity of 15.60% and a net margin of 0.99%.The business's revenue was down 5.0% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.68 EPS. DXC Technology has set its Q2 2027 guidance at 0.550-0.550 EPS. As a group, equities research analysts forecast that DXC Technology will post 2.61 earnings per share for the current year.

About DXC Technology

DXC Technology, headquartered in Tysons Corner, Virginia, is a global leader in IT services and solutions. The company was formed in 2017 through the merger of Computer Sciences Corporation (CSC) and the Enterprise Services business of Hewlett Packard Enterprise, combining decades of experience in consulting, systems integration and managed services. Since its inception, DXC has focused on helping clients modernize IT environments and drive digital transformation across their organizations.

DXC Technology's core service offerings encompass cloud and platform services, applications and analytics, security, and workplace and mobility solutions.

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