DXC Technology (DXC) Rating Increased to Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of DXC Technology (NYSE:DXC) from a hold rating to a buy rating in a research note issued to investors on Tuesday. They currently have $64.00 price target on the stock.
According to Zacks, “DXC Technology is benefiting from strength in the Digital business. Its impending acquisition of Luxoft is expected to boost the digital solutions business further. Moreover, growing demand for multi-cloud solutions is driving its cloud business. The company’s traction in the cloud and partnerships with HCL, AT&T, VMware and Microsoft are expected to drive growth. DXC Technology is also focusing on acquisitions to expedite growth. Cost-saving initiatives like the Bionix program are boosting the bottom-line. However, delay in the ramp-up of a few large digital contracts is a concern. Shares have underperformed the industry in the past one year.”
DXC has been the topic of a number of other research reports. BMO Capital Markets restated a buy rating on shares of DXC Technology in a report on Wednesday, October 24th. ValuEngine cut shares of DXC Technology from a sell rating to a strong sell rating in a report on Friday, November 2nd. Cantor Fitzgerald restated a hold rating and set a $70.00 target price on shares of DXC Technology in a report on Monday, January 7th. Cowen upgraded shares of DXC Technology from a market perform rating to an outperform rating in a research note on Monday, November 26th. Finally, JPMorgan Chase & Co. reiterated an overweight rating and issued a $83.00 price target on shares of DXC Technology in a research note on Tuesday, November 13th. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating, ten have given a buy rating and one has issued a strong buy rating to the company’s stock. The company has a consensus rating of Buy and an average price target of $92.31.
DXC Technology (NYSE:DXC) last announced its earnings results on Tuesday, November 6th. The company reported $2.02 EPS for the quarter, beating the Zacks’ consensus estimate of $1.96 by $0.06. DXC Technology had a net margin of 8.15% and a return on equity of 19.07%. The firm had revenue of $5.01 billion for the quarter, compared to analysts’ expectations of $5.30 billion. During the same quarter in the previous year, the business posted $1.93 EPS. The company’s quarterly revenue was down 8.1% on a year-over-year basis. On average, analysts anticipate that DXC Technology will post 8.16 earnings per share for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Tuesday, January 15th. Stockholders of record on Wednesday, December 5th will be given a dividend of $0.19 per share. This represents a $0.76 annualized dividend and a dividend yield of 1.24%. The ex-dividend date is Tuesday, December 4th. DXC Technology’s payout ratio is currently 9.57%.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Strategic Wealth Partners Ltd. increased its position in shares of DXC Technology by 3,925.0% during the 3rd quarter. Strategic Wealth Partners Ltd. now owns 322 shares of the company’s stock valued at $30,000 after purchasing an additional 314 shares during the last quarter. IMS Capital Management purchased a new stake in shares of DXC Technology during the 3rd quarter valued at about $36,000. ELM Advisors LLC purchased a new stake in shares of DXC Technology during the 3rd quarter valued at about $105,000. Truvestments Capital LLC purchased a new stake in shares of DXC Technology during the 3rd quarter valued at about $117,000. Finally, Legacy Financial Advisors Inc. increased its position in shares of DXC Technology by 111.8% during the 3rd quarter. Legacy Financial Advisors Inc. now owns 1,413 shares of the company’s stock valued at $132,000 after purchasing an additional 746 shares during the last quarter. 85.34% of the stock is owned by hedge funds and other institutional investors.
About DXC Technology
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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