DXC Technology (NYSE:DXC) Shares Up 6.9% - Here's What Happened

Key Points

• DXC Technology shares rose 6.9% to about $14.56, although trading volume was 56% below the stock’s average daily volume.
• Analyst sentiment remains cautious: seven analysts rate the stock Hold and two rate it Sell, producing a consensus “Reduce” rating and an average price target of $12.21.
• The company narrowly missed quarterly EPS estimates at $0.40 versus $0.41, while revenue reached $3 billion but declined 5% year over year. Institutional investors own approximately 96.2% of DXC’s shares.

DXC Technology Company. (NYSE:DXC - Get Free Report)'s share price shot up 6.9% on Monday. The company traded as high as $14.37 and last traded at $14.5570. Approximately 1,626,681 shares were traded during trading, a decline of 56% from the average daily volume of 3,738,772 shares. The stock had previously closed at $13.62.

Wall Street Analysts Forecast Growth

DXC has been the topic of several analyst reports. Royal Bank Of Canada reduced their price target on shares of DXC Technology from $16.00 to $14.00 and set a "sector perform" rating on the stock in a research 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. TD Cowen boosted their price objective on shares of DXC Technology from $10.00 to $12.00 and gave the company a "hold" rating in a research report on Monday, August 3rd. Morgan Stanley set a $12.00 target price on DXC Technology in a research note on Monday, August 3rd. Finally, Stifel Nicolaus reduced their target price on DXC Technology from $12.00 to $10.50 and set a "hold" rating on the stock in a report on Friday, July 31st. Seven analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Reduce" and an average target price of $12.21.

DXC Technology Stock Performance

The company has a debt-to-equity ratio of 0.90, a current ratio of 1.41 and a quick ratio of 1.41. The stock has a market cap of $2.34 billion, a P/E ratio of 20.84 and a beta of 0.79. The stock has a 50-day simple moving average of $11.36 and a 200-day simple moving average of $10.66.

DXC Technology (NYSE:DXC - Get Free Report) last posted its earnings results 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 return on equity of 15.60% and a net margin of 0.99%. The company had revenue of $3 billion during the quarter, compared to the consensus estimate of $2.99 billion. During the same period last year, the company posted $0.68 EPS. The firm's revenue was down 5.0% compared to the same quarter last year. DXC Technology has set its Q2 2027 guidance at 0.550-0.550 EPS. Research analysts forecast that DXC Technology Company. will post 2.59 earnings per share for the current year.

Hedge Funds Weigh In On DXC Technology

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Nykredit A S bought a new stake in shares of DXC Technology in the second quarter worth $51,580,000. BlackRock Inc. raised its position in DXC Technology by 21.5% during the 2nd quarter. BlackRock Inc. now owns 28,276,735 shares of the company's stock worth $250,249,000 after purchasing an additional 4,994,936 shares during the last quarter. State Street Corp raised its position 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 purchasing an additional 1,536,243 shares during the last quarter. Bank of America Corp DE bought a new position in DXC Technology during the 2nd quarter worth $11,706,000. Finally, SEB Asset Management AB acquired a new position in DXC Technology during the 1st quarter worth about $12,103,000. Institutional investors own 96.20% of the company's stock.

About DXC Technology

DXC Technology NYSE: DXC is a global information technology services company that helps businesses and government organizations modernize and manage their technology environments. Its services include IT consulting, systems integration, cloud computing, cybersecurity, data and analytics, application development and management, and workplace and infrastructure services.

The company supports clients in moving workloads to public, private and hybrid cloud environments, improving digital customer experiences, automating business processes and managing complex technology operations.

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