DXC Technology (NYSE:DXC) Lowered to Sell at Zacks Investment Research

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Zacks Investment Research lowered shares of DXC Technology (NYSE:DXC) from a hold rating to a sell rating in a research report sent to investors on Tuesday, Zacks.com reports. The brokerage currently has $36.00 target price on the stock.

According to Zacks, “DXC Technology’s fiscal first quarter results benefited from strength in its digital business, which expects further boost from the impending acquisition of Luxoft. Continued deal wins and strong momentum in analytics bookings in the automotive sector were tailwinds. Growth in enterprise cloud applications and consulting is a positive. Cost saving initiatives, like the Bionix program, are boosting the bottom line. However, weak legacy application services business and lower demand from Northern Europe and the U.K. are headwinds. Accelerated cloud adoption is also shifting revenues away from the traditional business. Margins at the GBS segment are expected to contract due to DXC Technology’s continued investments in digital hiring and expansion of digital capabilities. Shares have underperformed the industry year to date.”

Several other equities analysts have also issued reports on the company. Bank of America dropped their price objective on DXC Technology from $64.00 to $56.00 and set a buy rating on the stock in a report on Friday, August 9th. KeyCorp dropped their price objective on DXC Technology from $97.00 to $88.00 and set an overweight rating on the stock in a report on Monday, May 20th. BMO Capital Markets lowered DXC Technology from an outperform rating to a market perform rating and dropped their price objective for the stock from $60.00 to $48.00 in a report on Friday, August 9th. Royal Bank of Canada reaffirmed a buy rating on shares of DXC Technology in a report on Sunday. Finally, Cowen dropped their price objective on DXC Technology from $83.00 to $65.00 and set an outperform rating on the stock in a report on Friday, August 9th. Two analysts have rated the stock with a sell rating, five have assigned a hold rating and eight have issued a buy rating to the stock. DXC Technology presently has an average rating of Hold and an average price target of $69.17.

NYSE:DXC opened at $34.09 on Tuesday. The stock has a market capitalization of $9.57 billion, a price-to-earnings ratio of 4.09, a PEG ratio of 1.12 and a beta of 1.74. The company has a fifty day simple moving average of $53.21. The company has a quick ratio of 0.96, a current ratio of 0.96 and a debt-to-equity ratio of 0.47. DXC Technology has a 12 month low of $33.54 and a 12 month high of $96.75.

DXC Technology (NYSE:DXC) last posted its earnings results on Thursday, August 8th. The company reported $1.74 EPS for the quarter, beating the consensus estimate of $1.71 by $0.03. The firm had revenue of $4.89 billion for the quarter, compared to analyst estimates of $4.86 billion. DXC Technology had a return on equity of 19.39% and a net margin of 5.70%. DXC Technology’s revenue for the quarter was down 7.4% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.93 earnings per share. On average, equities research analysts anticipate that DXC Technology will post 8.16 EPS for the current fiscal year.

The firm also recently announced a quarterly dividend, which was paid on Tuesday, July 16th. Stockholders of record on Wednesday, June 5th were paid a dividend of $0.21 per share. This is an increase from DXC Technology’s previous quarterly dividend of $0.19. The ex-dividend date of this dividend was Tuesday, June 4th. This represents a $0.84 annualized dividend and a dividend yield of 2.46%. DXC Technology’s dividend payout ratio is 10.07%.

In related news, EVP Joanne Mason sold 1,768 shares of the firm’s stock in a transaction dated Tuesday, May 28th. The shares were sold at an average price of $52.29, for a total value of $92,448.72. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO John M. Lawrie bought 3,300 shares of the company’s stock in a transaction on Friday, August 2nd. The stock was bought at an average cost of $53.28 per share, with a total value of $175,824.00. The disclosure for this purchase can be found here. Insiders have bought 22,066 shares of company stock valued at $1,153,043 in the last quarter. Insiders own 0.81% of the company’s stock.

Several institutional investors and hedge funds have recently modified their holdings of DXC. Investec Asset Management LTD boosted its holdings in shares of DXC Technology by 91.1% in the 2nd quarter. Investec Asset Management LTD now owns 1,699,755 shares of the company’s stock valued at $93,741,000 after purchasing an additional 810,375 shares during the last quarter. Prudential Financial Inc. lifted its holdings in shares of DXC Technology by 23.4% during the 2nd quarter. Prudential Financial Inc. now owns 3,308,632 shares of the company’s stock valued at $182,471,000 after acquiring an additional 626,625 shares in the last quarter. Amundi Pioneer Asset Management Inc. lifted its holdings in shares of DXC Technology by 72.8% during the 1st quarter. Amundi Pioneer Asset Management Inc. now owns 1,487,161 shares of the company’s stock valued at $95,639,000 after acquiring an additional 626,479 shares in the last quarter. Wells Fargo & Company MN lifted its holdings in shares of DXC Technology by 60.1% during the 2nd quarter. Wells Fargo & Company MN now owns 1,502,054 shares of the company’s stock valued at $82,839,000 after acquiring an additional 563,789 shares in the last quarter. Finally, Poplar Forest Capital LLC lifted its holdings in shares of DXC Technology by 157.0% during the 1st quarter. Poplar Forest Capital LLC now owns 908,310 shares of the company’s stock valued at $58,413,000 after acquiring an additional 554,818 shares in the last quarter. 86.39% of the stock is owned by institutional investors and hedge funds.

DXC Technology Company Profile

DXC Technology Company, together with its subsidiaries, provides information technology services and solutions primarily in North America, Europe, Asia, and Australia. It operates through three segments: Global Business Services (GBS), Global Infrastructure Services (GIS), and United States Public Sector (USPS).

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