Softcat (LON:SCT) Sets New 1-Year Low - Here's What Happened

Key Points

• Softcat shares hit a new 52-week low, trading as low as GBX 692.96 before last changing hands at GBX 1,712.73, down 0.4%.
• Analyst sentiment remains positive overall, with a consensus “Moderate Buy” rating and an average price target of GBX 2,078.57, despite Deutsche Bank and Jefferies maintaining “Hold” ratings.
• Insiders recently bought shares worth approximately £120,000, while Softcat reported quarterly EPS of GBX 75.80, a 46.24% return on equity and a 7.61% net margin.

Shares of Softcat plc (LON:SCT - Get Free Report) reached a new 52-week low on Tuesday. The stock traded as low as GBX 692.96 and last traded at GBX 1,712.73, with a volume of 539,789 shares changing hands. The stock had previously closed at GBX 1,720.

Analyst Upgrades and Downgrades

SCT has been the subject of several analyst reports. Deutsche Bank Aktiengesellschaft downgraded Softcat to a "hold" rating and raised their target price for the stock from GBX 1,800 to GBX 2,140 in a research report on Wednesday, August 26th. JPMorgan Chase & Co. increased their target price on shares of Softcat from GBX 1,950 to GBX 2,300 and gave the stock an "overweight" rating in a research report on Monday, September 7th. Berenberg Bank reaffirmed a "buy" rating and set a GBX 2,400 price target on shares of Softcat in a report on Friday. Finally, Jefferies Financial Group reaffirmed a "hold" rating and issued a GBX 1,700 target price on shares of Softcat in a research note on Wednesday, October 14th. Four research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat, Softcat presently has an average rating of "Moderate Buy" and a consensus price target of GBX 2,078.57.

Softcat Trading Down 0.4%

The stock has a market capitalization of £3.68 billion, a P/E ratio of 24.43, a PEG ratio of 11.51 and a beta of 0.58. The company has a debt-to-equity ratio of 10.41, a current ratio of 1.39 and a quick ratio of 1.38. The business's 50 day simple moving average is GBX 1,924.01 and its 200-day simple moving average is GBX 1,749.88.

Softcat (LON:SCT - Get Free Report) last posted its quarterly earnings results on Wednesday, October 14th. The company reported GBX 75.80 earnings per share for the quarter. Softcat had a return on equity of 46.24% and a net margin of 7.61%. As a group, analysts forecast that Softcat plc will post 60.72 EPS for the current year.

Insider Transactions at Softcat

In related news, insider Robyn Perriss bought 1,058 shares of the firm's stock in a transaction dated Friday, October 16th. The stock was bought at an average cost of GBX 1,890 per share, for a total transaction of £19,996.20. Also, insider Graeme Watt bought 5,291 shares of the firm's stock in a transaction dated Friday, October 16th. The shares were bought at an average price of GBX 1,890 per share, with a total value of £99,999.90. In the last ninety days, insiders have acquired 12,816 shares of company stock valued at $24,246,219. Corporate insiders own 2.91% of the company's stock.

Softcat Company Profile

Softcat plc operates as a value-added IT reseller and IT infrastructure solutions provider in the United Kingdom. The company advices, procures, designs, implements, and manages technology, such as software licensing, workplace technology, networking, security, and cloud and datacenter for businesses and public sector organizations. It also offers public cloud, collaboration, connectivity, data centre and private cloud, devices, and financial solution services. In addition, the company provides IT asset management, lifecycle solutions, modern management, security, software licensing, supply chain operation, and virtual desktop and application.

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