Softcat (LON:SCT) Shares Pass Above 50 Day Moving Average - Should You Sell?

Key Points

• Shares of Softcat passed above its 50‑day moving average
• Analysts hold a consensus rating of Moderate Buy with a consensus price target of GBX 1,908.89 (7 Buys, 1 Hold, 1 Sell), though Jefferies cut its target to GBX 1,210 while Berenberg and Shore Capital reiterated Buys.
• Key fundamentals: market cap £2.65bn, P/E 19.26, ROE 45.16% and net margin 8.06%, with analysts forecasting about 60.72 EPS for the current fiscal year.

Shares of Softcat plc (LON:SCT - Get Free Report) passed above its fifty day moving average during trading on Tuesday . The stock has a fifty day moving average of GBX 1,191.27 and traded as high as GBX 1,366.50. Softcat shares last traded at GBX 1,362, with a volume of 9,533,043 shares trading hands.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the company. Jefferies Financial Group decreased their target price on Softcat from GBX 1,500 to GBX 1,210 and set a "hold" rating for the company in a research note on Thursday, March 19th. Berenberg Bank restated a "buy" rating and issued a GBX 1,900 target price on shares of Softcat in a research note on Thursday, March 19th. Finally, Shore Capital Group restated a "buy" rating on shares of Softcat in a research note on Thursday, March 19th. Seven analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of GBX 1,908.89.

Softcat Stock Performance

The stock has a fifty day moving average price of GBX 1,191.27 and a two-hundred day moving average price of GBX 1,365.75. The company has a market cap of £2.65 billion, a P/E ratio of 19.26, a PEG ratio of 11.51 and a beta of 0.48. The company has a debt-to-equity ratio of 13.07, a current ratio of 1.25 and a quick ratio of 1.38.

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