DXC Technology Company [DXC] stock Downgrade by JP Morgan analyst, price target now $17

DXC Technology Company [NYSE: DXC] stock went on a downward path that fall over -1.19% on Wednesday, amounting to a one-week price increase of more than 8.30%. The company report on October 1, 2020 that DXC Technology Completes Sale of U.S. State and Local Health and Human Services Business to Veritas Capital, Creating Gainwell Technologies.

DXC Technology (NYSE: DXC) today announced that it has completed the sale of its U.S. State and Local Health and Human Services business to Veritas Capital, a leading investor in government and healthcare technology businesses, to form Gainwell Technologies.

DXC intends to use the net proceeds from the $5 billion cash consideration to strengthen its balance sheet and reduce debt by about $3.5 billion. Following the repayment of debt, DXC will have approximately $6.0 billion of total debt on its balance sheet and net-debt of about $3.0 billion.

Over the last 12 months, DXC stock dropped by -31.14%. The one-year DXC Technology Company stock forecast points to a potential upside of 15.17. The average equity rating for DXC stock is currently 2.20, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $5.06 billion, with 253.63 million shares outstanding and 252.29 million shares in the current float. Compared to the average trading volume of 2.90M shares, DXC stock reached a trading volume of 2310263 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on DXC Technology Company [DXC]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for DXC shares is $23.54 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on DXC stock is a recommendation set at 2.20. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

JP Morgan have made an estimate for DXC Technology Company shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on May 29, 2020. The new note on the price target was released on March 12, 2020, representing the official price target for DXC Technology Company stock. Previously, the target price had yet another raise to $30, while Wells Fargo analysts kept a Underweight rating on DXC stock.

The Average True Range (ATR) for DXC Technology Company is set at 0.84, with the Price to Sales ratio for DXC stock in the period of the last 12 months amounting to 0.26. The Price to Book ratio for the last quarter was 1.10, with the Price to Cash per share for the same quarter was set at 21.74. Price to Free Cash Flow for DXC in the course of the last twelve months was 2.56 with Quick ratio for the last quarter at 1.30.

DXC Stock Performance Analysis:

DXC Technology Company [DXC] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 8.30. With this latest performance, DXC shares gained by 2.10% in over the last four-week period, additionally plugging by 47.16% over the last 6 months – not to mention a drop of -31.14% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for DXC stock in for the last two-week period is set at 57.65, with the RSI for the last a single of trading hit 62.77, and the three-weeks RSI is set at 56.23 for DXC Technology Company [DXC]. The present Moving Average for the last 50 days of trading for this stock 19.21, while it was recorded at 20.08 for the last single week of trading, and 20.20 for the last 200 days.

Insight into DXC Technology Company Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and DXC Technology Company [DXC] shares currently have an operating margin of +5.12 and a Gross Margin at +13.60. DXC Technology Company’s Net Margin is presently recorded at -27.43.

Return on Total Capital for DXC is now 5.60, given the latest momentum, and Return on Invested Capital for the company is -34.21. Return on Equity for this stock declined to -66.34, with Return on Assets sitting at -19.32. When it comes to the capital structure of this company, DXC Technology Company [DXC] has a Total Debt to Total Equity ratio set at 240.19. Additionally, DXC Total Debt to Total Capital is recorded at 70.60, with Total Debt to Total Assets ending up at 44.19. Long-Term Debt to Equity for the company is recorded at 203.45, with the Long-Term Debt to Total Capital now at 59.80.

Reflecting on the efficiency of the workforce at the company, DXC Technology Company [DXC] managed to generate an average of -$38,906 per employee. Receivables Turnover for the company is 4.09 with a Total Asset Turnover recorded at a value of 0.70.DXC Technology Company’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.30 and a Current Ratio set at 1.30.

DXC Stock EPS

With the latest financial reports released by the company, DXC Technology Company posted 1.38/share EPS, while the average EPS was predicted by analysts to be reported at 1.42/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -2.80%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for DXC. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for DXC Technology Company go to -4.09%.

DXC Technology Company [DXC] Insider Position Details

There are presently around $4,382 million, or 89.10% of DXC stock, in the hands of institutional investors. The top three institutional holders of DXC stocks are: VANGUARD GROUP INC with ownership of 28,461,445, which is approximately -4.017% of the company’s market cap and around 0.70% of the total institutional ownership; BLACKROCK INC., holding 17,318,376 shares of the stock with an approximate value of $350.0 million in DXC stocks shares; and GLENVIEW CAPITAL MANAGEMENT, LLC, currently with $242.28 million in DXC stock with ownership of nearly 9.115% of the company’s market capitalization.

Positions in DXC Technology Company stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 213 institutional holders increased their position in DXC Technology Company [NYSE:DXC] by around 29,886,132 shares. Additionally, 299 investors decreased positions by around 34,043,434 shares, while 109 investors held positions by with 152,870,134 shares. The mentioned changes placed institutional holdings at 216,799,700 shares, according to the latest SEC report filing. DXC stock had 70 new institutional investments in for a total of 4,262,614 shares, while 97 institutional investors sold positions of 7,290,361 shares during the same period.

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