Softcat (LON:SCT) Shares Down 8.5% - Here's Why

Key Points

• Softcat shares fell 8.5% to GBX 1,867 during Tuesday trading, with volume significantly below average. The stock had closed at GBX 2,040.
• Analyst views remain mixed: four analysts rate the stock a Buy, three a Hold and one a Sell, resulting in a consensus Hold rating and an average price target of GBX 1,937.50.
• Softcat has a £3.67 billion market capitalization and trades at a P/E ratio of 26.63. Its business provides IT reselling and infrastructure services, including software licensing, cloud, networking, security and data-center solutions.

Softcat plc (LON:SCT - Get Free Report) fell 8.5% during mid-day trading on Tuesday . The company traded as low as GBX 1,851 and last traded at GBX 1,867. 407,705 shares traded hands during trading, a decline of 79% from the average session volume of 1,906,154 shares. The stock had previously closed at GBX 2,040.

Wall Street Analyst Weigh In

SCT has been the subject of several recent research reports. Jefferies Financial Group reiterated a "hold" rating and set a GBX 1,700 price target on shares of Softcat in a report on Thursday, June 25th. Deutsche Bank Aktiengesellschaft downgraded shares of Softcat to a "hold" rating and lifted their price objective for the stock from GBX 1,800 to GBX 2,140 in a report on Wednesday, August 26th. Berenberg Bank increased their target price on shares of Softcat from GBX 1,900 to GBX 1,950 and gave the company a "buy" rating in a report on Tuesday, May 26th. JPMorgan Chase & Co. increased their target price on shares of Softcat from GBX 1,950 to GBX 2,300 and gave the company an "overweight" rating in a report on Monday. Finally, Royal Bank Of Canada lowered shares of Softcat to a "neutral" rating and raised their price target for the company from GBX 1,550 to GBX 1,950 in a research report on Monday, June 15th. Four research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of GBX 1,937.50.

Softcat Price Performance

The stock has a market cap of £3.67 billion, a P/E ratio of 26.63, a P/E/G ratio of 11.51 and a beta of 0.57. The business has a 50 day simple moving average of GBX 1,966.21 and a 200-day simple moving average of GBX 1,606.29. The company has a debt-to-equity ratio of 13.07, a quick ratio of 1.38 and a current ratio of 1.25.

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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