DXC Technology (NYSE:DXC) Upgraded to Hold at Zacks Investment Research

DXC Technology (NYSE:DXCGet Rating) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued on Friday, Zacks.com reports. The brokerage presently has a $36.00 price objective on the stock. Zacks Investment Research‘s target price indicates a potential upside of 2.56% from the company’s current price.

According to Zacks, “DXC is benefiting from strength in the digital business and partnerships that are helping it expand in the cloud computing space. Further, acquisitions are helping DXC augment revenues amid intensifying competition in the cloud computing and cyber security spaces. Stock outperformed the industry in the past year. Nonetheless, divestiture of the HHS business is negatively impacting GBS segment revenues. Also, the company’s near-term growth prospects are likely to hurt as organizations are pushing back their investments in big and expensive technology products amid the pandemic and ongoing geopolitical issues. Also, high debt load and intensifying competition are hurting DXC’s growth. Also, suboptimal customer delivery, weakening customer relationships and price concessions have been adversely impacting DXC's overall performance.”

Other research analysts also recently issued research reports about the company. Royal Bank of Canada reduced their price target on DXC Technology from $47.00 to $39.00 in a report on Thursday. Citigroup lowered their price target on DXC Technology from $45.00 to $43.00 in a report on Wednesday, April 20th. Susquehanna Bancshares decreased their target price on DXC Technology from $42.00 to $41.00 and set a “positive” rating on the stock in a report on Thursday. Bank of America lowered DXC Technology from a “buy” rating to an “underperform” rating and cut their price target for the stock from $45.00 to $30.00 in a research note on Wednesday, March 9th. Finally, Deutsche Bank Aktiengesellschaft cut their price objective on DXC Technology from $53.00 to $48.00 in a research report on Thursday. Two investment analysts have rated the stock with a sell rating, three have assigned a hold rating and eight have assigned a buy rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $39.93.

Shares of DXC stock traded up $0.94 during trading hours on Friday, reaching $35.10. The company had a trading volume of 42,583 shares, compared to its average volume of 2,128,938. The business has a fifty day simple moving average of $30.71 and a 200-day simple moving average of $31.88. The company has a market cap of $8.58 billion, a price-to-earnings ratio of -14.44, a price-to-earnings-growth ratio of 0.26 and a beta of 2.15. DXC Technology has a 12 month low of $27.28 and a 12 month high of $44.18. The company has a debt-to-equity ratio of 0.83, a current ratio of 1.12 and a quick ratio of 1.12.

DXC Technology (NYSE:DXCGet Rating) last announced its quarterly earnings results on Wednesday, May 25th. The company reported $0.84 earnings per share for the quarter, missing the consensus estimate of $0.99 by ($0.15). The company had revenue of $4.01 billion during the quarter, compared to analysts’ expectations of $4.12 billion. DXC Technology had a negative net margin of 3.67% and a positive return on equity of 16.81%. DXC Technology’s revenue for the quarter was down 8.6% compared to the same quarter last year. During the same quarter last year, the firm posted $0.74 earnings per share. On average, equities research analysts expect that DXC Technology will post 3.66 earnings per share for the current year.

Several institutional investors have recently added to or reduced their stakes in the company. Franklin Resources Inc. grew its holdings in DXC Technology by 25.2% during the third quarter. Franklin Resources Inc. now owns 16,568,171 shares of the company’s stock valued at $556,855,000 after purchasing an additional 3,329,558 shares during the last quarter. UBS Asset Management Americas Inc. lifted its holdings in shares of DXC Technology by 3.7% during the 3rd quarter. UBS Asset Management Americas Inc. now owns 717,698 shares of the company’s stock valued at $24,122,000 after purchasing an additional 25,601 shares in the last quarter. AlphaCrest Capital Management LLC lifted its holdings in shares of DXC Technology by 46.5% during the 3rd quarter. AlphaCrest Capital Management LLC now owns 8,602 shares of the company’s stock valued at $289,000 after purchasing an additional 2,730 shares in the last quarter. New York State Teachers Retirement System lifted its stake in DXC Technology by 0.9% in the 4th quarter. New York State Teachers Retirement System now owns 306,822 shares of the company’s stock valued at $9,877,000 after acquiring an additional 2,603 shares in the last quarter. Finally, Savant Capital LLC acquired a new position in shares of DXC Technology during the 4th quarter worth approximately $309,000. Institutional investors and hedge funds own 89.41% of the company’s stock.

About DXC Technology (Get Rating)

DXC Technology Company, together with its subsidiaries, provides information technology services and solutions primarily in North America, Europe, Asia, and Australia. It operates in two segments, Global Business Services (GBS) and Global Infrastructure Services (GIS). The GBS segment offers a portfolio of analytics services and extensive partner ecosystem that help its customers to gain rapid insights, automate operations, and accelerate their digital transformation journeys; and software engineering and solutions that enable businesses to run and manage their mission-critical functions, transform their operations, and develop new ways of doing business.

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