TD Cowen Issues Pessimistic Forecast for DXC Technology (NYSE:DXC) Stock Price

Key Points

• TD Cowen cut DXC Technology’s price target to $10 from $11 and kept a hold rating, signaling a cautious outlook even though the new target still implies modest upside from the prior close.
• Analyst sentiment remains weak overall, with multiple firms recently lowering ratings or targets; MarketBeat shows a consensus “Reduce” rating and an average price target of $12.25.
• DXC shares fell to $9.38 in Thursday trading, while the company’s latest earnings beat EPS estimates but missed revenue expectations and showed a slight year-over-year sales decline.

DXC Technology (NYSE:DXC - Get Free Report) had its target price cut by equities research analysts at TD Cowen from $11.00 to $10.00 in a report released on Thursday,Benzinga reports. The brokerage presently has a "hold" rating on the stock. TD Cowen's target price points to a potential upside of 6.67% from the stock's previous close.

A number of other equities research analysts also recently weighed in on the company. Stifel Nicolaus set a $12.00 price target on DXC Technology in a report on Friday, May 8th. BMO Capital Markets reduced their price target on shares of DXC Technology from $17.00 to $10.00 and set a "market perform" rating for the company in a research report on Monday, May 11th. Wall Street Zen lowered DXC Technology from a "buy" rating to a "hold" rating in a report on Saturday, March 28th. Weiss Ratings lowered shares of DXC Technology from a "sell (d+)" rating to a "sell (d)" rating in a research report on Monday, May 11th. Finally, Zacks Research cut shares of DXC Technology from a "hold" rating to a "strong sell" rating in a research report on Tuesday, May 12th. Six equities research analysts have rated the stock with a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Reduce" and a consensus target price of $12.25.

DXC Technology Stock Performance

DXC traded down $0.20 on Thursday, reaching $9.38. The company had a trading volume of 1,073,237 shares, compared to its average volume of 3,931,276. DXC Technology has a 1 year low of $7.90 and a 1 year high of $15.79. The company has a quick ratio of 1.36, a current ratio of 1.36 and a debt-to-equity ratio of 0.94. The stock has a market capitalization of $1.53 billion, a PE ratio of 156.25 and a beta of 0.82. The stock has a 50-day moving average price of $9.43 and a 200-day moving average price of $12.01.

DXC Technology (NYSE:DXC - Get Free Report) last issued its quarterly earnings results on Friday, May 8th. The company reported $0.77 earnings per share for the quarter, topping the consensus estimate of $0.70 by $0.07. DXC Technology had a return on equity of 17.24% and a net margin of 0.14%.The firm had revenue of $3.13 billion during the quarter, compared to the consensus estimate of $3.17 billion. During the same period last year, the company earned $0.84 earnings per share. The company's revenue for the quarter was down 1.2% on a year-over-year basis. As a group, research analysts forecast that DXC Technology will post 2.62 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CEO Raul J. Fernandez acquired 28,051 shares of the stock in a transaction that occurred on Monday, May 11th. The shares were acquired at an average cost of $8.90 per share, for a total transaction of $249,653.90. Following the purchase, the chief executive officer owned 844,052 shares of the company's stock, valued at approximately $7,512,062.80. The trade was a 3.44% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 1.13% of the company's stock.

Institutional Investors Weigh In On DXC Technology

A number of large investors have recently modified their holdings of the stock. EverSource Wealth Advisors LLC boosted its holdings in DXC Technology by 240.6% in the second quarter. EverSource Wealth Advisors LLC now owns 1,737 shares of the company's stock worth $27,000 after purchasing an additional 1,227 shares during the last quarter. Danske Bank A S grew its holdings in DXC Technology by 280.0% during the 4th quarter. Danske Bank A S now owns 1,900 shares of the company's stock valued at $28,000 after buying an additional 1,400 shares in the last quarter. Fifth Third Bancorp increased its holdings in shares of DXC Technology by 116.0% in the fourth quarter. Fifth Third Bancorp now owns 2,102 shares of the company's stock worth $31,000 after purchasing an additional 1,129 shares during the last quarter. Hantz Financial Services Inc. increased its holdings in shares of DXC Technology by 110.5% in the 4th quarter. Hantz Financial Services Inc. now owns 2,185 shares of the company's stock worth $32,000 after buying an additional 1,147 shares during the last quarter. Finally, CIBC Private Wealth Group LLC lifted its holdings in shares of DXC Technology by 13,258.8% in the 4th quarter. CIBC Private Wealth Group LLC now owns 2,271 shares of the company's stock worth $33,000 after acquiring an additional 2,254 shares during the last quarter. Institutional investors own 96.20% of the company's stock.

Trending Headlines about DXC Technology

Here are the key news stories impacting DXC Technology this week:

• Positive Sentiment: DXC and Wilton Re completed a major cloud conversion of more than 400,000 policies, extending a 20-year partnership and highlighting DXC’s ability to deliver large-scale modernization projects that could support future revenue and AI-related services. Article Title
• Positive Sentiment: DXC opened a new AI-focused customer experience center in Bengaluru, underscoring its push to expand its India footprint and position itself around enterprise AI adoption and consulting demand. Article Title
• Positive Sentiment: Additional coverage around the Bengaluru AI center reinforces investor attention on DXC’s turnaround strategy and its effort to rebrand around AI-led modernization, which may improve sentiment toward the stock. Article Title
• Neutral Sentiment: Media commentary on whether DXC can turn its fortunes around with a new AI strategy adds visibility to the turnaround story, but it does not by itself change fundamentals. Article Title
• Negative Sentiment: Pomerantz LLP said it is investigating claims on behalf of DXC investors, creating a legal uncertainty that could weigh on shares if the probe leads to further action. Article Title

About DXC Technology

DXC Technology, headquartered in Tysons Corner, Virginia, is a global leader in IT services and solutions. The company was formed in 2017 through the merger of Computer Sciences Corporation (CSC) and the Enterprise Services business of Hewlett Packard Enterprise, combining decades of experience in consulting, systems integration and managed services. Since its inception, DXC has focused on helping clients modernize IT environments and drive digital transformation across their organizations.

DXC Technology's core service offerings encompass cloud and platform services, applications and analytics, security, and workplace and mobility solutions.

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