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

Key Points

• DXC Technology has received an average broker rating of "Reduce", with one analyst recommending a sell and five recommending a hold; the average 12-month price target is $16.40.
• Hedge funds hold a significant portion of DXC Technology’s stock, with institutional investors owning 96.20% of the company, indicating strong confidence from large investors.
• In its latest earnings report, DXC Technology surpassed analyst expectations by posting earnings per share of $0.68, compared to the expected $0.64, despite a 2.4% year-over-year revenue decline.

Shares of DXC Technology Company. (NYSE:DXC - Get Free Report) have been assigned a consensus rating of "Reduce" from the six analysts that are currently covering the company, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell rating and five have issued a hold rating on the company. The average 12 month target price among brokerages that have issued a report on the stock in the last year is $16.40.

Several equities research analysts have recently commented on the company. Guggenheim reissued a "neutral" rating on shares of DXC Technology in a research note on Monday, May 12th. BMO Capital Markets cut their price target on DXC Technology from $26.00 to $17.00 and set a "market perform" rating for the company in a report on Thursday, May 15th. JPMorgan Chase & Co. dropped their price objective on DXC Technology from $22.00 to $18.00 and set an "underweight" rating for the company in a report on Wednesday, May 21st. Susquehanna lowered their price target on DXC Technology from $23.00 to $16.00 and set a "neutral" rating for the company in a report on Wednesday, April 23rd. Finally, Wall Street Zen raised shares of DXC Technology from a "hold" rating to a "buy" rating in a research report on Sunday, July 20th.

Institutional Investors Weigh In On DXC Technology

A number of institutional investors and hedge funds have recently modified their holdings of the business. Millennium Management LLC raised its stake in DXC Technology by 1,765.9% in the 1st quarter. Millennium Management LLC now owns 1,652,331 shares of the company's stock worth $28,172,000 after purchasing an additional 1,563,775 shares in the last quarter. Norges Bank bought a new position in DXC Technology in the 4th quarter valued at about $17,399,000. LSV Asset Management increased its holdings in DXC Technology by 22.7% in the 1st quarter. LSV Asset Management now owns 4,151,398 shares of the company's stock valued at $70,781,000 after buying an additional 769,026 shares during the period. American Century Companies Inc. increased its holdings in DXC Technology by 11.8% in the 1st quarter. American Century Companies Inc. now owns 6,503,675 shares of the company's stock valued at $110,888,000 after buying an additional 686,705 shares during the period. Finally, Nuveen LLC bought a new position in DXC Technology in the 1st quarter valued at about $10,830,000. 96.20% of the stock is owned by institutional investors.

DXC Technology Trading Up 0.3%

DXC stock traded up $0.04 during midday trading on Friday, hitting $13.38. 1,271,109 shares of the company's stock were exchanged, compared to its average volume of 1,756,729. DXC Technology has a 1-year low of $12.24 and a 1-year high of $24.83. The business has a 50-day simple moving average of $15.00 and a two-hundred day simple moving average of $16.64. The stock has a market capitalization of $2.42 billion, a PE ratio of 6.49 and a beta of 1.18. The company has a current ratio of 1.22, a quick ratio of 1.22 and a debt-to-equity ratio of 0.90.

DXC Technology (NYSE:DXC - Get Free Report) last announced its quarterly earnings results on Thursday, July 31st. The company reported $0.68 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.64 by $0.04. The company had revenue of $3.16 billion during the quarter, compared to the consensus estimate of $3.06 billion. DXC Technology had a return on equity of 18.59% and a net margin of 2.96%. DXC Technology's revenue for the quarter was down 2.4% on a year-over-year basis. During the same period in the previous year, the business earned $0.74 EPS. On average, sell-side analysts predict that DXC Technology will post 3.35 EPS for the current fiscal year.

About DXC Technology

DXC Technology Company, together with its subsidiaries, provides information technology services and solutions in the United States, the United Kingdom, rest of Europe, Australia, and internationally. It operates in two segments, Global Business Services (GBS) and Global Infrastructure Services (GIS).