Softcat (LON:SCT) Shares Cross Below 50-Day Moving Average - What's Next?

Key Points

• Softcat shares fell below their 50-day moving average, reaching GBX 1,885 before last trading at GBX 1,968. The stock’s 50-day average is GBX 1,963.37, compared with a 200-day average of GBX 1,649.42.
• Analyst sentiment is mixed, with four Buy, three Hold, and one Sell rating. MarketBeat reports a consensus rating of Hold and an average price target of GBX 1,937.50.
• Insiders have recently purchased shares, including acquisitions by Kathryn Mecklenburgh and Graham Charlton at GBX 2,045 per share. Insiders bought 382 shares worth approximately £778,745 over the past three months and own 2.90% of the company.

Softcat plc (LON:SCT - Get Free Report) crossed below its 50-day moving average during trading on Thursday . The stock has a 50-day moving average of GBX 1,963.37 and traded as low as GBX 1,885. Softcat shares last traded at GBX 1,968, with a volume of 266,674 shares trading hands.

Analyst Ratings Changes

A number of brokerages have recently issued reports on SCT. JPMorgan Chase & Co. raised 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. Royal Bank Of Canada downgraded shares of Softcat to a "neutral" rating and upped their price target for the company from GBX 1,550 to GBX 1,950 in a research report on Monday, June 15th. Jefferies Financial Group reiterated a "hold" rating and set a GBX 1,700 price target on shares of Softcat in a research note on Thursday, June 25th. Deutsche Bank Aktiengesellschaft downgraded shares of Softcat to a "hold" rating and raised their price objective for the stock from GBX 1,800 to GBX 2,140 in a research report on Wednesday, August 26th. Finally, Berenberg Bank lifted their price objective on shares of Softcat from GBX 1,900 to GBX 1,950 and gave the company a "buy" rating in a research note on Tuesday, May 26th. Four analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Hold" and an average target price of GBX 1,937.50.

Softcat Price Performance

The stock has a market capitalization of £3.86 billion, a PE ratio of 28.07, a PEG ratio of 11.51 and a beta of 0.57. The firm's fifty day moving average is GBX 1,963.37 and its 200-day moving average is GBX 1,649.42. 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 news, insider Kathryn Mecklenburgh purchased 176 shares of the stock in a transaction dated 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 Graham Charlton acquired 176 shares of the business's stock in a transaction that occurred on Monday, September 7th. The stock was purchased at an average price of GBX 2,045 per share, for a total transaction of £3,599.20. In the last three months, insiders have bought 382 shares of company stock valued at $778,745. Corporate insiders own 2.90% of the company's stock.

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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