Traders Buy Large Volume of Call Options on DXC Technology (NYSE:DXC)

Key Points

• DXC Technology saw unusually heavy call-option activity on Friday, with 8,031 calls purchased—893% above its average volume of 809 contracts.
• Analyst sentiment remains cautious: seven analysts rate the stock a Hold and two rate it Sell, producing an average “Reduce” rating and a consensus price target of $12.21.
• DXC shares fell 2.6% to $15.67, despite significant institutional ownership of 96.2%; the company’s latest quarter missed EPS estimates and revenue declined 5% year over year.

DXC Technology Company. (NYSE:DXC - Get Free Report) was the recipient of unusually large options trading on Friday. Stock investors purchased 8,031 call options on the company. This is an increase of 893% compared to the average volume of 809 call options.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on the stock. Morgan Stanley set a $12.00 price objective on shares of DXC Technology in a research report on Monday, August 3rd. Royal Bank Of Canada reduced their price target on DXC Technology from $16.00 to $14.00 and set a "sector perform" rating for the company in a report on Friday, July 31st. Weiss Ratings upgraded shares of DXC Technology from a "sell (d)" rating to a "sell (d+)" rating in a research report on Tuesday, October 6th. Zacks Research raised DXC Technology from a "strong sell" rating to a "hold" rating in a research note on Monday, July 13th. Finally, Stifel Nicolaus reduced their price target on shares of DXC Technology from $12.00 to $10.50 and set a "hold" rating for the company in a report on Friday, July 31st. Seven investment analysts have rated the stock with a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Reduce" and a consensus price target of $12.21.

DXC Technology Trading Down 2.6%

Shares of DXC stock traded down $0.41 during mid-day trading on Friday, reaching $15.67. 445,179 shares of the stock traded hands, compared to its average volume of 3,818,947. The company has a quick ratio of 1.41, a current ratio of 1.41 and a debt-to-equity ratio of 0.90. DXC Technology has a 1-year low of $7.90 and a 1-year high of $16.14. The stock's fifty day simple moving average is $11.69 and its two-hundred day simple moving average is $10.73. The company has a market cap of $2.50 billion, a price-to-earnings ratio of 22.39 and a beta of 0.79.

DXC Technology (NYSE:DXC - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The company reported $0.40 EPS for the quarter, missing analysts' consensus estimates of $0.41 by ($0.01). DXC Technology had a net margin of 0.99% and a return on equity of 15.60%. The firm had revenue of $3 billion during the quarter, compared to analyst estimates of $2.99 billion. During the same period last year, the business posted $0.68 EPS. The company's revenue was down 5.0% on a year-over-year basis. DXC Technology has set its Q2 2027 guidance at 0.550-0.550 EPS. On average, research analysts anticipate that DXC Technology will post 2.59 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. increased its holdings in shares of DXC Technology by 21.5% in the second quarter. BlackRock Inc. now owns 28,276,735 shares of the company's stock valued at $250,249,000 after purchasing an additional 4,994,936 shares during the period. Dimensional Fund Advisors LP raised its holdings in shares of DXC Technology by 2.6% in the 1st quarter. Dimensional Fund Advisors LP now owns 10,029,966 shares of the company's stock valued at $126,068,000 after purchasing an additional 258,819 shares in the last quarter. State Street Corp raised its stake in DXC Technology by 25.0% during the 2nd quarter. State Street Corp now owns 7,683,280 shares of the company's stock worth $67,997,000 after acquiring an additional 1,536,243 shares in the last quarter. Nykredit A S acquired a new position in DXC Technology in the second quarter valued at $51,580,000. Finally, Allianz Asset Management GmbH boosted its holdings in DXC Technology by 58.3% in the 2nd quarter. Allianz Asset Management GmbH now owns 1,564,754 shares of the company's stock valued at $13,848,000 after purchasing an additional 576,353 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 NYSE: DXC is a global information technology services and solutions company that helps organizations modernize and manage their technology environments. Its services include consulting, application development and management, cloud migration and operations, cybersecurity, data and analytics, enterprise technology management, and workplace and end-user services.

The company serves businesses and government organizations across a range of industries, including financial services, healthcare, insurance, manufacturing, aerospace and defense, automotive, retail, and the public sector.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.