DXC Technology (NYSE:DXC) Shares Down 6.3% - Should You Sell?

Key Points

• DXC Technology shares fell 6.3% to about $13.83, with trading volume down 91% versus the average session.
• Analyst sentiment remains cautious: seven analysts rate the stock Hold and three rate it Sell, producing a consensus “Reduce” rating and an average price target of $12.06.
• The company exceeded quarterly earnings and revenue estimates, reporting $0.67 in adjusted EPS and $3.03 billion in revenue, although revenue declined 4.1% year over year and analysts expect full-year EPS of $2.47.

DXC Technology Company. (NYSE:DXC - Get Free Report)'s stock price traded down 6.3% during trading on Tuesday. The company traded as low as $13.70 and last traded at $13.8340. 355,739 shares traded hands during trading, a decline of 91% from the average session volume of 3,849,061 shares. The stock had previously closed at $14.76.

Analyst Ratings Changes

Several research analysts have recently weighed in on the company. Morgan Stanley boosted their price target on DXC Technology from $9.00 to $12.00 and gave the stock an "equal weight" rating in a research note on Monday. TD Cowen lifted their price objective on DXC Technology from $10.00 to $12.00 and gave the stock a "hold" rating in a report on Monday, August 3rd. Stifel Nicolaus decreased their target price on DXC Technology from $12.00 to $10.50 and set a "hold" rating for the company in a research report on Friday, July 31st. Susquehanna upped their target price on shares of DXC Technology from $10.00 to $12.00 and gave the company a "neutral" rating in a research note on Friday. Finally, Weiss Ratings downgraded shares of DXC Technology from a "sell (d+)" rating to a "sell (d)" rating in a report on Monday. Seven analysts have rated the stock with a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Reduce" and a consensus price target of $12.06.

DXC Technology Stock Down 3.8%

The company has a 50-day moving average of $12.36 and a two-hundred day moving average of $11.59. The company has a market capitalization of $2.27 billion, a PE ratio of 21.79 and a beta of 0.79. The company has a debt-to-equity ratio of 0.90, a current ratio of 1.41 and a quick ratio of 1.41.

DXC Technology (NYSE:DXC - Get Free Report) last released its quarterly earnings data on Thursday, October 29th. The company reported $0.67 earnings per share for the quarter, topping analysts' consensus estimates of $0.55 by $0.12. The firm had revenue of $3.03 billion during the quarter, compared to analyst estimates of $2.98 billion. DXC Technology had a return on equity of 15.60% and a net margin of 0.99%. The business's quarterly revenue was down 4.1% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.84 earnings per share. Sell-side analysts anticipate that DXC Technology Company. will post 2.47 earnings per share for the current fiscal year.

Hedge Funds Weigh In On DXC Technology

Several institutional investors have recently made changes to their positions in DXC. Bessemer Group Inc. grew its position in shares of DXC Technology by 61.1% during the first quarter. Bessemer Group Inc. now owns 3,680 shares of the company's stock worth $47,000 after acquiring an additional 1,395 shares during the last quarter. Farther Finance Advisors LLC raised its holdings in shares of DXC Technology by 289.0% during the third quarter. Farther Finance Advisors LLC now owns 4,396 shares of the company's stock valued at $48,000 after buying an additional 3,266 shares during the last quarter. Covestor Ltd grew its holdings in DXC Technology by 31.2% in the 2nd quarter. Covestor Ltd now owns 6,603 shares of the company's stock worth $58,000 after buying an additional 1,570 shares in the last quarter. Versant Capital Management Inc increased its position in DXC Technology by 47.4% in the 2nd quarter. Versant Capital Management Inc now owns 7,474 shares of the company's stock valued at $66,000 after acquiring an additional 2,404 shares during the period. Finally, Two Sigma Securities LLC acquired a new stake in DXC Technology in the 2nd quarter valued at approximately $94,000. 96.20% of the stock is owned by institutional investors.

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.

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