Zacks Investment Research downgraded shares of CA Technologies (NASDAQ:CA) from a hold rating to a sell rating in a research note published on Friday morning.
According to Zacks, “CA’s Q4 results benefited from higher Mainframe new sales as well as solid demand for its recently launched Trusted Access Manager for Z, a Mainframe solution. However, we note that lower renewals and revenue backlog is a concern. Moreover, management’s fiscal 2019 top-line as well as cash flow guidance failed to impress us. Higher mix of subscription-based sales is likely to hurt revenues. Moreover, decline in the projected cash flow can primarily be attributed to restructuring charges, U.S. tax reform and adoption of ASC 606 revenue standard. Further, an incremental increase in tax will hurt bottom-line. Moreover, intensifying competition from peers and currency headwinds are other concerns. Notably, the stock has underperformed the industry on a year-to-date basis. Nevertheless, are positive about CA’s acquisition and “go to market” sales strategy, which is likely to help the stock rebound in fiscal 2019.”
CA has been the topic of a number of other research reports. Evercore ISI reissued a sell rating and issued a $36.00 target price on shares of CA Technologies in a research note on Friday, February 2nd. BidaskClub cut shares of CA Technologies from a buy rating to a hold rating in a research note on Thursday, March 15th. Credit Suisse Group reissued a hold rating and issued a $36.00 target price on shares of CA Technologies in a research note on Tuesday, March 20th. Jefferies Group restated a buy rating and issued a $41.00 price target on shares of CA Technologies in a research report on Wednesday, January 31st. Finally, Barclays boosted their price target on shares of CA Technologies from $34.00 to $37.00 and gave the company an equal weight rating in a research report on Wednesday, January 31st. Three investment analysts have rated the stock with a sell rating, eleven have issued a hold rating and two have given a buy rating to the company. The company currently has an average rating of Hold and a consensus price target of $32.02.
CA Technologies opened at $35.09 on Friday, according to Marketbeat.com. The stock has a market capitalization of $14.71 billion, a P/E ratio of 15.03, a price-to-earnings-growth ratio of 4.14 and a beta of 0.69. CA Technologies has a twelve month low of $34.93 and a twelve month high of $35.48. The company has a current ratio of 1.33, a quick ratio of 1.33 and a debt-to-equity ratio of 0.43.
CA Technologies (NASDAQ:CA) last posted its earnings results on Tuesday, May 8th. The technology company reported $0.62 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.59 by $0.03. The business had revenue of $1.08 billion for the quarter, compared to analysts’ expectations of $1.08 billion. CA Technologies had a net margin of 11.24% and a return on equity of 16.89%. The firm’s revenue for the quarter was up 7.0% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.54 earnings per share. research analysts anticipate that CA Technologies will post 2.56 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which will be paid on Tuesday, June 5th. Shareholders of record on Thursday, May 17th will be given a $0.255 dividend. The ex-dividend date is Wednesday, May 16th. This represents a $1.02 dividend on an annualized basis and a yield of 2.91%. CA Technologies’s dividend payout ratio (DPR) is presently 43.97%.
In other news, EVP Lauren Patricia Flaherty sold 10,793 shares of the company’s stock in a transaction that occurred on Monday, March 12th. The shares were sold at an average price of $36.75, for a total transaction of $396,642.75. Following the transaction, the executive vice president now directly owns 71,123 shares in the company, valued at $2,613,770.25. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Jacob Lamm sold 77,610 shares of the company’s stock in a transaction that occurred on Friday, March 9th. The stock was sold at an average price of $36.77, for a total transaction of $2,853,719.70. Following the transaction, the executive vice president now owns 71,223 shares in the company, valued at $2,618,869.71. The disclosure for this sale can be found here. 0.90% of the stock is owned by insiders.
Hedge funds have recently made changes to their positions in the company. Amundi Pioneer Asset Management Inc. bought a new stake in shares of CA Technologies during the fourth quarter worth approximately $97,375,000. Mackenzie Financial Corp bought a new stake in shares of CA Technologies during the fourth quarter worth approximately $16,391,000. First Trust Advisors LP raised its stake in shares of CA Technologies by 12.0% during the fourth quarter. First Trust Advisors LP now owns 4,554,082 shares of the technology company’s stock worth $151,560,000 after buying an additional 487,482 shares during the last quarter. Arrowstreet Capital Limited Partnership bought a new stake in shares of CA Technologies during the fourth quarter worth approximately $14,534,000. Finally, PGGM Investments raised its stake in shares of CA Technologies by 188.9% during the fourth quarter. PGGM Investments now owns 583,100 shares of the technology company’s stock worth $19,406,000 after buying an additional 381,237 shares during the last quarter. Institutional investors own 69.47% of the company’s stock.
About CA Technologies
CA, Inc provides software and solutions that help organizations to plan, develop, manage, and secure applications and enterprise environments in the United States and internationally. The company operates through three segments: Enterprise Solutions, Mainframe Solutions, and Services. The Mainframe Solutions segment offers DevOps solutions and tools for development, testing, and deployment that support collaboration across the software development lifecycle and mobile to mainframe teams; operations intelligence and automation solutions; and security and compliance solutions.
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