DXC Technology (NYSE:DXC) Shares Gap Down - Here's Why

Key Points

• DXC Technology shares gapped down ahead of Tuesday’s open, falling from a prior close of $9.71 to an opening price of $9.17 and last trading around $9.29.
• Recent analyst action has been mostly cautious to bearish, including a BMO Capital Markets cut to a $10 target and multiple downgrades; the consensus rating is now “Reduce” with a $12.25 target price.
• The company’s latest earnings beat EPS expectations at $0.77 versus $0.70, but revenue came in slightly below estimates and was down 1.2% year over year, while CEO Raul J. Fernandez recently bought more than 28,000 shares.

DXC Technology Company. (NYSE:DXC - Get Free Report)'s share price gapped down before the market opened on Tuesday . The stock had previously closed at $9.71, but opened at $9.17. DXC Technology shares last traded at $9.2860, with a volume of 222,471 shares.

Analyst Ratings Changes

A number of research firms have recently weighed in on DXC. BMO Capital Markets cut their target price on DXC Technology from $17.00 to $10.00 and set a "market perform" rating for the company in a research report on Monday, May 11th. Weiss Ratings downgraded DXC Technology from a "sell (d+)" rating to a "sell (d)" rating in a research note on Monday, May 11th. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $16.00 price objective on shares of DXC Technology in a research report on Friday, June 12th. Stifel Nicolaus set a $12.00 price objective on shares of DXC Technology in a research note on Friday, May 8th. Finally, Wall Street Zen lowered shares of DXC Technology from a "buy" rating to a "hold" rating in a report on Saturday, March 28th. Six analysts have rated the stock with a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat, DXC Technology currently has an average rating of "Reduce" and a consensus target price of $12.25.

DXC Technology Stock Down 4.7%

The firm's fifty day moving average is $9.30 and its 200-day moving average is $11.89. The company has a market capitalization of $1.51 billion, a P/E ratio of 154.23 and a beta of 0.82. The company has a debt-to-equity ratio of 0.94, a quick ratio of 1.36 and a current ratio of 1.36.

DXC Technology (NYSE:DXC - Get Free Report) last issued its earnings results on Friday, May 8th. The company reported $0.77 earnings per share for the quarter, beating analysts' consensus estimates of $0.70 by $0.07. The firm had revenue of $3.13 billion for the quarter, compared to analyst estimates of $3.17 billion. DXC Technology had a net margin of 0.14% and a return on equity of 17.24%. The company's quarterly revenue was down 1.2% on a year-over-year basis. During the same quarter last year, the business posted $0.84 earnings per share. As a group, equities research analysts predict that DXC Technology Company. will post 2.61 EPS for the current year.

Insider Buying and Selling

In other news, CEO Raul J. Fernandez bought 28,051 shares of the company's stock in a transaction on Monday, May 11th. The stock was purchased at an average cost of $8.90 per share, for a total transaction of $249,653.90. Following the completion of the transaction, the chief executive officer owned 844,052 shares of the company's stock, valued at $7,512,062.80. This trade represents a 3.44% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available at this link. Corporate insiders own 1.13% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. JPMorgan Chase & Co. lifted its holdings in shares of DXC Technology by 28.1% during the third quarter. JPMorgan Chase & Co. now owns 742,963 shares of the company's stock worth $10,127,000 after purchasing an additional 162,958 shares during the period. Assenagon Asset Management S.A. increased its holdings in DXC Technology by 2,316.7% in the fourth quarter. Assenagon Asset Management S.A. now owns 1,570,035 shares of the company's stock valued at $23,001,000 after purchasing an additional 1,505,069 shares during the period. SG Americas Securities LLC increased its holdings in DXC Technology by 1,171.6% in the fourth quarter. SG Americas Securities LLC now owns 752,329 shares of the company's stock valued at $11,022,000 after purchasing an additional 693,167 shares during the period. CastleKnight Management LP raised its position in DXC Technology by 344.7% during the 4th quarter. CastleKnight Management LP now owns 324,651 shares of the company's stock worth $4,756,000 after purchasing an additional 251,651 shares during the last quarter. Finally, Waterfront Wealth Inc. raised its position in DXC Technology by 55.4% during the 4th quarter. Waterfront Wealth Inc. now owns 220,922 shares of the company's stock worth $3,285,000 after purchasing an additional 78,730 shares during the last quarter. Institutional investors own 96.20% of the company's stock.

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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