DXC Technology (NYSE:DXC) Trading Down 6.7% Following Analyst Downgrade

DXC Technology Company. (NYSE:DXC)’s stock price fell 6.7% during trading on Wednesday after Morgan Stanley lowered their price target on the stock from $15.00 to $9.00. Morgan Stanley currently has an equal weight rating on the stock. DXC Technology traded as low as $8.20 and last traded at $8.30. 592,911 shares were traded during mid-day trading, a decline of 81% from the average session volume of 3,043,858 shares. The stock had previously closed at $8.90.

DXC has been the topic of several other research reports. TD Cowen dropped their target price on DXC Technology from $15.00 to $14.00 and set a “hold” rating on the stock in a report on Monday, April 6th. Wolfe Research set a $13.00 target price on DXC Technology and gave the company an “underperform” rating in a report on Friday, January 30th. Zacks Research lowered DXC Technology from a “hold” rating to a “strong sell” rating in a report on Tuesday. BMO Capital Markets dropped their price objective on DXC Technology from $17.00 to $10.00 and set a “market perform” rating on the stock in a report on Monday. Finally, Weiss Ratings lowered DXC Technology from a “sell (d+)” rating to a “sell (d)” rating in a report on Monday. Six research analysts have rated the stock with a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Reduce” and an average target price of $12.75.

Insider Activity

In other news, CEO Raul J. Fernandez acquired 28,051 shares of the company’s stock in a transaction on Monday, May 11th. The shares were bought at an average price of $8.90 per share, with a total value of $249,653.90. Following the completion of the acquisition, the chief executive officer owned 844,052 shares in the company, valued at $7,512,062.80. This trade represents a 3.44% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.61% of the company’s stock.

Hedge Funds Weigh In On DXC Technology

A number of hedge funds and other institutional investors have recently made changes to their positions in DXC. AQR Capital Management LLC grew its holdings in shares of DXC Technology by 97.0% during the second quarter. AQR Capital Management LLC now owns 3,933,973 shares of the company’s stock worth $60,150,000 after buying an additional 1,936,726 shares during the last quarter. Assenagon Asset Management S.A. grew its holdings in shares of DXC Technology by 2,316.7% during the fourth quarter. Assenagon Asset Management S.A. now owns 1,570,035 shares of the company’s stock worth $23,001,000 after buying an additional 1,505,069 shares during the last quarter. UBS Group AG grew its holdings in shares of DXC Technology by 131.2% during the third quarter. UBS Group AG now owns 2,047,395 shares of the company’s stock worth $27,906,000 after buying an additional 1,161,879 shares during the last quarter. Qube Research & Technologies Ltd grew its holdings in shares of DXC Technology by 1,156.1% during the second quarter. Qube Research & Technologies Ltd now owns 1,132,578 shares of the company’s stock worth $17,317,000 after buying an additional 1,042,409 shares during the last quarter. Finally, SEB Asset Management AB purchased a new position in shares of DXC Technology during the first quarter worth about $12,103,000. Hedge funds and other institutional investors own 96.20% of the company’s stock.

DXC Technology Stock Performance

The company has a quick ratio of 1.35, a current ratio of 1.36 and a debt-to-equity ratio of 0.94. The stock has a fifty day moving average of $11.88 and a 200-day moving average of $13.25. The stock has a market cap of $1.34 billion, a PE ratio of 136.92 and a beta of 0.85.

DXC Technology (NYSE:DXC) last released its quarterly earnings results on Thursday, May 7th. The company reported $0.77 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 for the quarter, compared to analyst estimates of $3.17 billion. During the same quarter last year, the company posted $0.84 earnings per share. The business’s revenue was down 1.2% on a year-over-year basis. DXC Technology has set its Q1 2027 guidance at 0.400-0.400 EPS and its FY 2027 guidance at 2.400-2.900 EPS. On average, equities analysts forecast that DXC Technology Company. will post 2.74 EPS for the current year.

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.