Zacks Research Downgrades DXC Technology (NYSE:DXC) to Hold

Key Points

• Zacks Research downgraded DXC from a "strong‑buy" to a "hold"; across analysts the stock carries a consensus "Reduce" rating with a $14.71 price target.
• DXC beat EPS with $0.96 vs. $0.83 expected and reported $3.19B in revenue (roughly in line, down 1% YoY); the shares trade near $12.69 with a P/E of 5.45 and a $2.15B market cap.
• CEO Raul J. Fernandez bought 16,446 shares at $15.24, increasing his position, while insiders own just 0.61% of the stock and institutional investors hold about 96.2%.

DXC Technology (NYSE:DXC - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued to investors on Tuesday,Zacks.com reports.

Other equities research analysts have also issued reports about the stock. Wolfe Research set a $13.00 target price on shares of DXC Technology and gave the stock an "underperform" rating in a research note on Friday, January 30th. BMO Capital Markets upped their target price on DXC Technology from $15.00 to $17.00 and gave the stock a "market perform" rating in a research note on Tuesday, February 3rd. Finally, Wall Street Zen cut shares of DXC Technology from a "buy" rating to a "hold" rating in a research note on Saturday, January 31st. Seven investment analysts have rated the stock with a Hold rating and three have given a Sell rating to the company's stock. According to data from MarketBeat.com, DXC Technology currently has an average rating of "Reduce" and a consensus price target of $14.71.

DXC Technology Stock Performance

Shares of DXC traded up $0.21 during mid-day trading on Tuesday, reaching $12.69. The company had a trading volume of 45,261 shares, compared to its average volume of 2,391,080. The stock has a 50 day moving average of $14.12 and a two-hundred day moving average of $13.92. The company has a quick ratio of 1.35, a current ratio of 1.35 and a debt-to-equity ratio of 0.91. The stock has a market capitalization of $2.15 billion, a P/E ratio of 5.45 and a beta of 1.10. DXC Technology has a 52-week low of $11.61 and a 52-week high of $18.90.

DXC Technology (NYSE:DXC - Get Free Report) last released its quarterly earnings data on Thursday, January 29th. The company reported $0.96 EPS for the quarter, topping the consensus estimate of $0.83 by $0.13. DXC Technology had a return on equity of 17.56% and a net margin of 3.34%.The business had revenue of $3.19 billion for the quarter, compared to analyst estimates of $3.18 billion. During the same quarter in the prior year, the firm posted $0.92 EPS. The business's quarterly revenue was down 1.0% compared to the same quarter last year. On average, analysts expect that DXC Technology will post 3.35 earnings per share for the current year.

Insider Activity at DXC Technology

In related news, CEO Raul J. Fernandez acquired 16,446 shares of the stock in a transaction on Monday, February 2nd. The shares were bought at an average price of $15.24 per share, with a total value of $250,637.04. Following the completion of the purchase, the chief executive officer owned 816,001 shares of the company's stock, valued at approximately $12,435,855.24. This represents a 2.06% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Christopher Anthony Voci sold 2,500 shares of the firm's stock in a transaction on Thursday, December 11th. The stock was sold at an average price of $15.15, for a total value of $37,875.00. Following the completion of the sale, the senior vice president directly owned 88,605 shares of the company's stock, valued at $1,342,365.75. This trade represents a 2.74% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.61% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Villanova Investment Management Co LLC increased its stake in DXC Technology by 6.2% during the fourth quarter. Villanova Investment Management Co LLC now owns 176,028 shares of the company's stock worth $2,579,000 after acquiring an additional 10,316 shares during the last quarter. DGS Capital Management LLC acquired a new position in DXC Technology in the fourth quarter valued at about $224,000. Caitlin John LLC boosted its stake in DXC Technology by 358.0% during the fourth quarter. Caitlin John LLC now owns 3,224 shares of the company's stock worth $49,000 after buying an additional 2,520 shares during the period. Vident Advisory LLC raised its stake in shares of DXC Technology by 5.4% in the 4th quarter. Vident Advisory LLC now owns 91,284 shares of the company's stock valued at $1,337,000 after acquiring an additional 4,697 shares during the period. Finally, State of Tennessee Department of Treasury lifted its holdings in shares of DXC Technology by 51.8% in the 4th quarter. State of Tennessee Department of Treasury now owns 143,140 shares of the company's stock worth $2,066,000 after acquiring an additional 48,852 shares during the last quarter. 96.20% of the stock is currently owned by institutional investors and hedge funds.

DXC Technology Company Profile

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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