DXC Technology (NYSE:DXC) Hits New 12-Month Low - Here's Why

Key Points

• DXC hit a new 52-week low, trading as low as $11.54 and last at $11.87 with a market cap of $2.0 billion, while analysts' consensus rating is "Reduce" with a $14.71 target price.
• The company beat quarterly EPS estimates ($0.96 vs. $0.83) and reported $3.19 billion in revenue, but revenue was down 1% year-over-year and the stock trades below its 50- and 200-day moving averages ($13.43 and $13.74).
• CEO Raul J. Fernandez purchased 16,446 shares at an average $15.24, increasing his stake about 2.06%, and institutional investors now own 96.20% of the shares after several firms materially boosted their positions.

DXC Technology Company. (NYSE:DXC - Get Free Report)'s stock price reached a new 52-week low on Tuesday . The stock traded as low as $11.54 and last traded at $11.87, with a volume of 214156 shares changing hands. The stock had previously closed at $12.13.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on DXC. Wall Street Zen upgraded shares of DXC Technology from a "hold" rating to a "buy" rating in a research report on Saturday, March 7th. BMO Capital Markets lifted their target price 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. Zacks Research downgraded DXC Technology from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, March 3rd. Finally, 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. Seven equities research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Reduce" and a consensus target price of $14.71.

DXC Technology Price Performance

The firm has a market capitalization of $2.00 billion, a PE ratio of 5.06 and a beta of 1.10. The stock's 50 day simple moving average is $13.43 and its two-hundred day simple moving average is $13.74. The company has a debt-to-equity ratio of 0.91, a quick ratio of 1.35 and a current ratio of 1.35.

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

Insider Buying and Selling at DXC Technology

In other news, CEO Raul J. Fernandez bought 16,446 shares of DXC Technology stock in a transaction dated Monday, February 2nd. The stock was acquired at an average cost of $15.24 per share, with a total value of $250,637.04. Following the acquisition, the chief executive officer owned 816,001 shares of the company's stock, valued at approximately $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 SEC, which is accessible through this link. Insiders own 0.61% of the company's stock.

Institutional Investors Weigh In On DXC Technology

A number of institutional investors and hedge funds have recently added to or reduced their stakes in DXC. AQR Capital Management LLC boosted its stake in DXC Technology by 97.0% during the 2nd quarter. AQR Capital Management LLC now owns 3,933,973 shares of the company's stock worth $60,150,000 after purchasing an additional 1,936,726 shares during the period. Assenagon Asset Management S.A. grew its stake in DXC Technology by 2,316.7% in the 4th quarter. Assenagon Asset Management S.A. now owns 1,570,035 shares of the company's stock worth $23,001,000 after acquiring an additional 1,505,069 shares during the period. UBS Group AG boosted its stake in DXC Technology by 131.2% in the 3rd quarter. UBS Group AG now owns 2,047,395 shares of the company's stock worth $27,906,000 after buying an additional 1,161,879 shares during the last quarter. Norges Bank purchased a new stake in DXC Technology during the second quarter valued at about $16,589,000. Finally, Qube Research & Technologies Ltd lifted its stake in shares of DXC Technology by 1,156.1% in the 2nd quarter. Qube Research & Technologies Ltd now owns 1,132,578 shares of the company's stock valued at $17,317,000 after purchasing an additional 1,042,409 shares in the last quarter. Hedge funds and other institutional investors own 96.20% of the company's stock.

DXC Technology Company Profile

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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