Softcat (LON:SCT) Share Price Breaks Below 50-Day Moving Average - What's Next?

Key Points

• Softcat shares fell below their 50-day moving average, dropping as low as GBX 1,788 and last trading at GBX 1,839 amid heavy volume.
• Analyst views remain mixed: the consensus rating is “Hold”, with an average price target of GBX 1,993.75; targets range from GBX 1,700 to GBX 2,400.
• Softcat’s shares trade at a P/E ratio of 26.23, while insiders have purchased 382 shares worth approximately $778,745 over the past 90 days.

Softcat plc (LON:SCT - Get Free Report) shares passed below its 50-day moving average during trading on Wednesday. The stock has a 50-day moving average of GBX 1,956.84 and traded as low as GBX 1,788. Softcat shares last traded at GBX 1,839, with a volume of 42,989,012 shares trading hands.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on the company. Deutsche Bank Aktiengesellschaft lowered Softcat to a "hold" rating and increased their price target for the stock from GBX 1,800 to GBX 2,140 in a research note on Wednesday, August 26th. Berenberg Bank upped their price objective on Softcat from GBX 1,950 to GBX 2,400 and gave the stock a "buy" rating in a research note on Monday, September 21st. Jefferies Financial Group reiterated a "hold" rating and set a GBX 1,700 target price on shares of Softcat in a research report on Thursday, June 25th. JPMorgan Chase & Co. lifted their target price on Softcat from GBX 1,950 to GBX 2,300 and gave the company an "overweight" rating in a research note on Monday, September 7th. Finally, Royal Bank Of Canada cut Softcat to a "neutral" rating and boosted their price target for the stock from GBX 1,550 to GBX 1,950 in a report on Monday, June 15th. Four equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of GBX 1,993.75.

Softcat Stock Performance

The business has a 50 day moving average of GBX 1,956.84 and a 200 day moving average of GBX 1,693.18. The company has a market capitalization of £3.61 billion, a P/E ratio of 26.23, a price-to-earnings-growth ratio of 11.51 and a beta of 0.58. The company has a quick ratio of 1.38, a current ratio of 1.25 and a debt-to-equity ratio of 13.07.

Insider Buying and Selling at Softcat

In other Softcat news, insider Graham Charlton acquired 176 shares of the stock in a transaction on Monday, September 7th. The stock was acquired at an average price of GBX 2,045 per share, for a total transaction of £3,599.20. Also, insider Kathryn Mecklenburgh acquired 176 shares of the stock in a transaction on Monday, September 7th. The shares were acquired at an average price of GBX 2,045 per share, with a total value of £3,599.20. Insiders purchased 382 shares of company stock worth $778,745 in the last 90 days. 2.90% of the stock is currently owned by company insiders.

About Softcat

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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