DXC Technology (NYSE:DXC) Hits New 1-Year Low - Here's What Happened

Key Points

• Shares hit a new 52-week low of $11.52 (last $11.365) on heavy volume, down about 7.8%, leaving DXC with a market cap near $1.94 billion and a P/E of 4.89.
• Wall Street sentiment is negative: the consensus rating is "Reduce" with a $14.63 price target and most analysts assigning Hold or Sell ratings.
• Mixed fundamentals and insider activity: DXC beat quarterly EPS estimates ($0.96 vs. $0.83) while revenue declined 1% YoY, and CEO Raul Fernandez bought 16,446 shares at $15.24 despite insiders owning only 0.61% and institutions about 96.2%.

Shares of DXC Technology Company. (NYSE:DXC - Get Free Report) hit a new 52-week low during trading on Friday . The stock traded as low as $11.52 and last traded at $11.3650, with a volume of 2474512 shares changing hands. The stock had previously closed at $12.37.

Wall Street Analyst Weigh In

DXC has been the subject of several analyst reports. Weiss Ratings reiterated a "sell (d+)" rating on shares of DXC Technology in a report on Wednesday. Wolfe Research set a $13.00 price target on DXC Technology and gave the company an "underperform" rating in a research report on Friday, January 30th. Wall Street Zen downgraded DXC Technology from a "buy" rating to a "hold" rating in a research report on Saturday, March 28th. BMO Capital Markets increased their price target on DXC Technology from $15.00 to $17.00 and gave the company a "market perform" rating in a research report on Tuesday, February 3rd. Finally, TD Cowen decreased their price objective on shares of DXC Technology from $15.00 to $14.00 and set a "hold" rating for the company in a report on Monday. Eight investment analysts have rated the stock with a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Reduce" and a consensus price target of $14.63.

DXC Technology Stock Down 7.8%

The company has a quick ratio of 1.35, a current ratio of 1.35 and a debt-to-equity ratio of 0.91. The stock has a 50-day simple moving average of $12.79 and a 200-day simple moving average of $13.57. The firm has a market capitalization of $1.94 billion, a PE ratio of 4.89 and a beta of 1.00.

DXC Technology (NYSE:DXC - Get Free Report) last released its earnings results on Thursday, January 29th. The company reported $0.96 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.83 by $0.13. The business had revenue of $3.19 billion during the quarter, compared to the consensus estimate of $3.18 billion. DXC Technology had a return on equity of 17.56% and a net margin of 3.34%.The business's revenue for the quarter was down 1.0% on a year-over-year basis. During the same period last year, the business posted $0.92 earnings per share. Analysts forecast that DXC Technology Company. will post 3.35 EPS for the current year.

Insider Buying and Selling at DXC Technology

In related news, CEO Raul J. Fernandez purchased 16,446 shares of DXC Technology stock in a transaction dated Monday, February 2nd. The stock was bought at an average cost of $15.24 per share, for a total transaction of $250,637.04. Following the completion of the transaction, the chief executive officer owned 816,001 shares in the company, valued at $12,435,855.24. This trade represents a 2.06% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 0.61% of the company's stock.

Hedge Funds Weigh In On DXC Technology

Hedge funds have recently made changes to their positions in the stock. Corient Private Wealth LLC grew its stake in DXC Technology by 75.6% during the fourth quarter. Corient Private Wealth LLC now owns 61,304 shares of the company's stock valued at $898,000 after acquiring an additional 26,394 shares in the last quarter. Villanova Investment Management Co LLC grew its position in DXC Technology by 6.2% during the fourth quarter. Villanova Investment Management Co LLC now owns 176,028 shares of the company's stock worth $2,579,000 after buying an additional 10,316 shares in the last quarter. DGS Capital Management LLC purchased a new position in DXC Technology during the fourth quarter worth about $224,000. Caitlin John LLC grew its position in DXC Technology by 358.0% during the fourth quarter. Caitlin John LLC now owns 3,224 shares of the company's stock worth $49,000 after buying an additional 2,520 shares in the last quarter. Finally, Vident Advisory LLC grew its position in DXC Technology by 5.4% during the fourth quarter. Vident Advisory LLC now owns 91,284 shares of the company's stock worth $1,337,000 after buying an additional 4,697 shares in the last quarter. 96.20% of the stock is currently owned by hedge funds and other institutional investors.

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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