DXC Technology (NYSE:DXC) Shares Gap Down – Here’s Why

Shares of DXC Technology Company. (NYSE:DXC) gapped down prior to trading on Tuesday . The stock had previously closed at $9.71, but opened at $9.17. DXC Technology shares last traded at $9.2860, with a volume of 222,471 shares trading hands.

Wall Street Analysts Forecast Growth

Several analysts recently commented on DXC shares. Weiss Ratings cut DXC Technology from a “sell (d+)” rating to a “sell (d)” rating in a report on Monday, May 11th. Morgan Stanley lowered their price target on shares of DXC Technology from $15.00 to $9.00 and set an “equal weight” rating for the company in a report on Thursday, May 14th. Stifel Nicolaus set a $12.00 price target on shares of DXC Technology in a research report on Friday, May 8th. BMO Capital Markets reduced their price objective on shares of DXC Technology from $17.00 to $10.00 and set a “market perform” rating on the stock in a research note on Monday, May 11th. Finally, Zacks Research cut shares of DXC Technology from a “hold” rating to a “strong sell” rating in a research report on Tuesday, May 12th. Six investment analysts have rated the stock with a Hold rating and four have given a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Reduce” and a consensus price target of $12.25.

DXC Technology Stock Performance

The stock has a market capitalization of $1.51 billion, a price-to-earnings ratio of 154.23 and a beta of 0.82. The company has a 50 day simple moving average of $9.30 and a 200-day simple moving average of $11.89. The company has a quick ratio of 1.36, a current ratio of 1.36 and a debt-to-equity ratio of 0.94.

DXC Technology (NYSE:DXC) last announced its quarterly earnings data on Friday, May 8th. The company reported $0.77 EPS for the quarter, topping the consensus estimate of $0.70 by $0.07. The company had revenue of $3.13 billion during the quarter, compared to the consensus estimate of $3.17 billion. DXC Technology had a net margin of 0.14% and a return on equity of 17.24%. The company’s quarterly revenue was down 1.2% on a year-over-year basis. During the same quarter last year, the firm posted $0.84 EPS. As a group, equities research analysts expect that DXC Technology Company. will post 2.61 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CEO Raul J. Fernandez purchased 28,051 shares of the firm’s stock in a transaction on Monday, May 11th. The stock was purchased at an average cost of $8.90 per share, with a total value of $249,653.90. Following the completion of the purchase, the chief executive officer owned 844,052 shares in the company, valued at approximately $7,512,062.80. This trade represents a 3.44% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 1.13% of the company’s stock.

Hedge Funds Weigh In On DXC Technology

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. AQR Capital Management LLC grew its stake in shares of DXC Technology by 97.0% in the 2nd quarter. AQR Capital Management LLC now owns 3,933,973 shares of the company’s stock valued at $60,150,000 after buying an additional 1,936,726 shares during the period. Assenagon Asset Management S.A. raised its stake in DXC Technology by 2,316.7% during the 4th quarter. Assenagon Asset Management S.A. now owns 1,570,035 shares of the company’s stock worth $23,001,000 after buying an additional 1,505,069 shares during the period. UBS Group AG raised its stake in DXC Technology by 131.2% during the 3rd quarter. UBS Group AG now owns 2,047,395 shares of the company’s stock worth $27,906,000 after buying an additional 1,161,879 shares during the period. Qube Research & Technologies Ltd raised its stake in DXC Technology by 1,156.1% during the 2nd quarter. Qube Research & Technologies Ltd now owns 1,132,578 shares of the company’s stock worth $17,317,000 after buying an additional 1,042,409 shares during the period. Finally, SEB Asset Management AB bought a new position in DXC Technology in the first quarter worth approximately $12,103,000. Institutional investors own 96.20% of the company’s stock.

DXC Technology Company Profile

DXC Technology, headquartered in Tysons Corner, Virginia, is a global leader in IT services and solutions. The company was formed in 2017 through the merger of Computer Sciences Corporation (CSC) and the Enterprise Services business of Hewlett Packard Enterprise, combining decades of experience in consulting, systems integration and managed services. Since its inception, DXC has focused on helping clients modernize IT environments and drive digital transformation across their organizations.

DXC Technology’s core service offerings encompass cloud and platform services, applications and analytics, security, and workplace and mobility solutions.