DXC Technology (NYSE:DXC) Price Target Cut to $9.00 by Analysts at Morgan Stanley

Key Points

• Morgan Stanley cut its price target on DXC Technology from $15 to $9 while keeping an equal weight rating, implying limited upside from current levels.
• Analyst sentiment remains weak overall: multiple firms recently lowered targets or downgraded the stock, and MarketBeat shows a consensus rating of Reduce with an average target of $12.75.
• DXC shares traded around $8.28, near their 52-week low, even as CEO Raul J. Fernandez bought more stock in a recent insider purchase.

DXC Technology (NYSE:DXC - Get Free Report) had its price target lowered by equities researchers at Morgan Stanley from $15.00 to $9.00 in a research note issued on Thursday,Benzinga reports. The firm currently has an "equal weight" rating on the stock. Morgan Stanley's target price would suggest a potential upside of 8.71% from the company's current price.

A number of other equities analysts have also recently commented on the company. Wolfe Research set a $13.00 price target on DXC Technology and gave the stock an "underperform" rating in a research note on Friday, January 30th. Zacks Research lowered shares of DXC Technology from a "hold" rating to a "strong sell" rating in a report on Tuesday. Stifel Nicolaus set a $12.00 price objective on shares of DXC Technology in a report on Friday, May 8th. BMO Capital Markets reduced their target price on DXC Technology from $17.00 to $10.00 and set a "market perform" rating on the stock in a report on Monday. Finally, TD Cowen dropped their target price on shares of DXC Technology from $15.00 to $14.00 and set a "hold" rating on the stock in a report on Monday, April 6th. Six analysts have rated the stock with a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat, DXC Technology has a consensus rating of "Reduce" and an average price target of $12.75.

DXC Technology Price Performance

DXC traded up $0.06 on Thursday, reaching $8.28. The company had a trading volume of 1,613,733 shares, compared to its average volume of 3,129,803. The company has a market cap of $1.35 billion, a price-to-earnings ratio of 138.92 and a beta of 0.85. The company has a debt-to-equity ratio of 0.94, a quick ratio of 1.35 and a current ratio of 1.36. DXC Technology has a 52-week low of $7.90 and a 52-week high of $16.45. The business has a 50 day simple moving average of $11.96 and a 200 day simple moving average of $13.28.

DXC Technology (NYSE:DXC - Get Free Report) last released its earnings results on Thursday, May 7th. The company reported $0.77 EPS for the quarter, beating analysts' consensus estimates of $0.70 by $0.07. The business had revenue of $3.13 billion for the quarter, compared to analysts' expectations of $3.17 billion. DXC Technology had a return on equity of 17.24% and a net margin of 0.14%.The firm's revenue was down 1.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.84 earnings per share. DXC Technology has set its Q1 2027 guidance at 0.400-0.400 EPS and its FY 2027 guidance at 2.400-2.900 EPS. As a group, sell-side analysts anticipate that DXC Technology will post 2.74 EPS for the current year.

Insider Activity

In other DXC Technology news, CEO Raul J. Fernandez purchased 28,051 shares of the stock in a transaction dated Monday, May 11th. The shares were purchased at an average cost of $8.90 per share, with a total value of $249,653.90. Following the completion of the acquisition, the chief executive officer directly owned 844,052 shares in the company, valued at $7,512,062.80. This trade represents a 3.44% increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. 0.61% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. grew its holdings in shares of DXC Technology by 3.5% in the third quarter. Vanguard Group Inc. now owns 23,452,271 shares of the company's stock worth $319,654,000 after acquiring an additional 800,973 shares during the period. Dimensional Fund Advisors LP grew its holdings in shares of DXC Technology by 2.6% in the first quarter. Dimensional Fund Advisors LP now owns 10,029,966 shares of the company's stock worth $126,068,000 after acquiring an additional 258,819 shares during the period. American Century Companies Inc. grew its holdings in shares of DXC Technology by 8.5% in the third quarter. American Century Companies Inc. now owns 7,591,818 shares of the company's stock worth $103,476,000 after acquiring an additional 596,475 shares during the period. FIL Ltd grew its holdings in shares of DXC Technology by 0.7% in the fourth quarter. FIL Ltd now owns 6,383,750 shares of the company's stock worth $93,522,000 after acquiring an additional 45,015 shares during the period. Finally, State Street Corp grew its holdings in shares of DXC Technology by 2.1% in the second quarter. State Street Corp now owns 6,381,982 shares of the company's stock worth $97,581,000 after acquiring an additional 128,916 shares during the period. 96.20% of the stock is 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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