Softcat (LON:SCT) Share Price Crosses Below Fifty Day Moving Average - Here's Why

Key Points

• Price action: Softcat's shares slipped below their 50‑day moving average (50‑day MA GBX 1,220.21), trading as low as GBX 1,177 and last at GBX 1,189.01 on volume of 390,283.
• Analyst views: The stock has a "Moderate Buy" consensus (7 Buys, 1 Hold, 1 Sell) with a consensus price target of GBX 1,908.89, while notable ratings range from JPMorgan's upgrade/GBX 2,950 target to Jefferies' cut/GBX 1,210 target.
• Financials: Softcat has a £2.38bn market cap, a PE of 18.29 and a ROE of 45.16%, with current and quick ratios of 1.25 and 1.38, indicating profitability and modest liquidity.

Softcat plc (LON:SCT - Get Free Report)'s stock price passed below its 50 day moving average during trading on Monday . The stock has a 50 day moving average of GBX 1,220.21 and traded as low as GBX 1,177. Softcat shares last traded at GBX 1,189.01, with a volume of 390,283 shares traded.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the company. JPMorgan Chase & Co. upgraded Softcat to an "overweight" rating and boosted their price objective for the company from GBX 2,820 to GBX 2,950 in a research note on Thursday, December 4th. Shore Capital Group restated a "buy" rating on shares of Softcat in a research report on Thursday, March 19th. Jefferies Financial Group cut their target price on shares of Softcat from GBX 1,500 to GBX 1,210 and set a "hold" rating on the stock in a report on Thursday, March 19th. Finally, Berenberg Bank reiterated a "buy" rating and issued a GBX 1,900 price target on shares of Softcat in a research report on Thursday, March 19th. Seven research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of GBX 1,908.89.

Softcat Stock Performance

The company has a market cap of £2.38 billion, a PE ratio of 18.29, a P/E/G ratio of 11.51 and a beta of 0.62. The company has a debt-to-equity ratio of 13.07, a quick ratio of 1.38 and a current ratio of 1.25. The stock's 50-day simple moving average is GBX 1,220.21 and its 200 day simple moving average is GBX 1,401.23.

Softcat (LON:SCT - Get Free Report) last issued its earnings results on Wednesday, March 18th. The company reported GBX 36.10 earnings per share for the quarter. Softcat had a net margin of 8.06% and a return on equity of 45.16%. As a group, equities analysts anticipate that Softcat plc will post 60.72 EPS for the current year.

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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