DXC Technology Faces “Reduce” Rating as Analysts Adjust Targets

Shares of DXC Technology Company (NYSE:DXC) have received a consensus rating of “Reduce” from eight brokerage firms currently covering the stock, according to MarketBeat.com. Among these analysts, two have issued a sell recommendation, while six have opted for a hold rating. The average 12-month price target for DXC Technology is set at $15.00.

Recent evaluations from various analysts highlight differing perspectives on the stock’s potential. On November 9, Wall Street Zen upgraded DXC Technology from a “hold” rating to a “buy” rating. In contrast, Weiss Ratings reaffirmed a “sell (d)” rating in a report issued on October 8.

JPMorgan Chase & Co. also made adjustments, lowering their target price from $18.00 to $14.00 and designating an “underweight” rating in a note published on August 20. Similarly, Stifel Nicolaus reduced their price target from $15.00 to $14.00, maintaining a “hold” rating as of October 31. Additionally, the Royal Bank Of Canada adjusted its price objective from $18.00 to $16.00, classifying the stock as “sector perform” on August 1.

Quarterly Earnings Performance

DXC Technology reported its quarterly earnings on October 31, showing earnings per share of $0.84. This figure surpassed analysts’ expectations of $0.71 by $0.13. The company’s revenue for the quarter was $3.16 billion, slightly below the anticipated $3.17 billion. Despite this, DXC Technology achieved a return on equity of 18.59% and a net margin of 2.96%. However, revenue declined by 2.5% year-over-year, down from $0.93 earnings per share reported in the same quarter last year. Analysts predict that DXC Technology will post earnings per share of 3.35 for the current fiscal year.

Insider Activity and Institutional Investments

In related news, Senior Vice President Christopher Anthony Voci sold 2,500 shares of DXC Technology on September 11, at an average price of $14.52, totaling approximately $36,300. Following this transaction, Voci still holds 91,105 shares valued at about $1,322,844.60, representing a 2.67% decrease in ownership. This sale was disclosed in a filing with the Securities and Exchange Commission.

Institutional investors have also shown interest in DXC Technology. EverSource Wealth Advisors LLC increased its stake by 240.6% in the second quarter, now owning 1,737 shares valued at $27,000. Smartleaf Asset Management LLC boosted its holdings by 38.2% during the third quarter, owning 2,814 shares worth $38,000. Headlands Technologies LLC acquired a new stake valued at approximately $39,000 in the same quarter. Additionally, Rothschild Investment LLC raised its stake by 609.8%, owning 2,981 shares valued at $41,000. Signaturefd LLC also grew its holdings by 187.3%, now owning 3,054 shares worth $47,000.

Overall, institutional investors control 96.20% of DXC Technology’s stock, indicating significant confidence in the company’s future, despite recent ratings adjustments.