Softcat (LON:SCT) Share Price Breaks Below 50 Day Moving Average – What’s Next?

Softcat plc (LON:SCT)’s share price passed below its 50 day moving average during trading on Monday. The stock has a 50 day moving average of GBX 1,944.16 and traded as low as GBX 1,825. Softcat shares last traded at GBX 1,904, with a volume of 321,179 shares changing hands.

Key Stories Impacting Softcat

Here are the key news stories impacting Softcat this week:

• Positive Sentiment: Strong fiscal 2026 performance: Softcat reported a 35.4% increase in revenue and a 19.4% rise in profit for the year ended July 31, 2026. The results reportedly exceeded expectations, supporting the company’s record of robust execution. Softcat FY2026 profits rise 19.4% as revenue grows 35.4%
• Positive Sentiment: Shareholder returns increased: The company lifted its dividend after reporting the better-than-expected profit growth, providing a further positive signal for income-focused investors. Softcat lifts dividend as profit growth beats expectations
• Positive Sentiment: U.S. expansion: Softcat is moving into the U.S. market through a deal with GDT, creating a potential long-term growth opportunity and broadening its geographic reach. Softcat posts double-digit profit growth and moves into U.S. market with GDT deal
• Neutral Sentiment: Softcat reported earnings of GBX 75.80 per share, with a 45.16% return on equity and an 8.06% net margin, highlighting strong profitability. Softcat earnings report and conference call
• Negative Sentiment: FY2027 growth is expected to slow: Management’s outlook pointed to more moderate growth, prompting investors to discount the strong backward-looking results and driving the shares lower. Softcat shares fall as outlook points to slower growth
• Negative Sentiment: Jefferies reaffirmed its “hold” rating and set a GBX 1,700 price target, indicating limited near-term upside based on its valuation assessment. Softcat fiscal 2026 results

Analyst Upgrades and Downgrades

SCT has been the subject of several research analyst reports. JPMorgan Chase & Co. lifted their price objective on Softcat from GBX 1,950 to GBX 2,300 and gave the stock an “overweight” rating in a report on Monday, September 7th. Jefferies Financial Group reiterated a “hold” rating and set a GBX 1,700 price objective on shares of Softcat in a research report on Wednesday. Deutsche Bank Aktiengesellschaft downgraded Softcat to a “hold” rating and increased their target price for the company from GBX 1,800 to GBX 2,140 in a report on Wednesday, August 26th. Finally, Berenberg Bank raised their target price on Softcat from GBX 1,950 to GBX 2,400 and gave the stock a “buy” rating in a research report on Monday, September 21st. Four research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of GBX 1,993.75.

Softcat Stock Down 4.9%

The company has a debt-to-equity ratio of 13.07, a quick ratio of 1.38 and a current ratio of 1.25. The company’s 50-day moving average price is GBX 1,940.87 and its 200 day moving average price is GBX 1,739.06. The stock has a market capitalization of £3.94 billion, a P/E ratio of 26.11, a P/E/G ratio of 11.51 and a beta of 0.58.

Softcat (LON:SCT) last posted its quarterly earnings results on Wednesday, October 14th. The company reported GBX 75.80 EPS for the quarter. Softcat had a return on equity of 45.16% and a net margin of 8.06%. As a group, equities analysts expect that Softcat plc will post 60.72 earnings per share for the current year.

Insider Transactions at Softcat

In other Softcat news, insider Kathryn Mecklenburgh purchased 176 shares of the company’s stock in a transaction on Monday, September 7th. The stock was acquired at an average cost of GBX 2,045 per share, for a total transaction of £3,599.20. Also, insider Graham Charlton acquired 176 shares of the business’s stock in a transaction on Monday, September 7th. The shares were bought at an average cost of GBX 2,045 per share, with a total value of £3,599.20. In the last ninety days, insiders bought 384 shares of company stock valued at $749,739. Corporate insiders own 2.91% of the company’s stock.

Softcat Company Profile

Softcat plc operates as a value-added IT reseller and IT infrastructure solutions provider in the United Kingdom. The company advices, procures, designs, implements, and manages technology, such as software licensing, workplace technology, networking, security, and cloud and datacenter for businesses and public sector organizations. It also offers public cloud, collaboration, connectivity, data centre and private cloud, devices, and financial solution services. In addition, the company provides IT asset management, lifecycle solutions, modern management, security, software licensing, supply chain operation, and virtual desktop and application.