DXC Technology (NYSE:DXC) Stock Jumps 5% – Should You Buy?

DXC Technology Company. (NYSE:DXC)’s share price was up 5% during trading on Tuesday. The stock traded as high as $13.18 and last traded at $13.1630. Approximately 1,780,698 shares changed hands during trading, a decline of 52% from the average daily volume of 3,725,121 shares. The stock had previously closed at $12.54.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on DXC. TD Cowen raised their price objective on DXC Technology from $10.00 to $12.00 and gave the company a “hold” rating in a report on Monday, August 3rd. Weiss Ratings upgraded DXC Technology from a “sell (d)” rating to a “sell (d+)” rating in a research report on Tuesday, October 6th. Zacks Research raised DXC Technology from a “strong sell” rating to a “hold” rating in a research note on Monday, July 13th. Morgan Stanley set a $12.00 target price on DXC Technology in a research note on Monday, August 3rd. Finally, Stifel Nicolaus reduced their price target on shares of DXC Technology from $12.00 to $10.50 and set a “hold” rating on the stock in a research report on Friday, July 31st. Seven research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Reduce” and an average target price of $12.21.

DXC Technology Price Performance

The company has a debt-to-equity ratio of 0.90, a current ratio of 1.41 and a quick ratio of 1.41. The firm has a market capitalization of $2.04 billion, a P/E ratio of 18.26 and a beta of 0.79. The firm’s 50 day simple moving average is $11.24 and its two-hundred day simple moving average is $10.63.

DXC Technology (NYSE:DXC) last posted its quarterly earnings results on Thursday, July 30th. The company reported $0.40 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.41 by ($0.01). DXC Technology had a net margin of 0.99% and a return on equity of 15.60%. The business had revenue of $3 billion for the quarter, compared to analysts’ expectations of $2.99 billion. During the same quarter in the previous year, the company earned $0.68 earnings per share. The business’s quarterly revenue was down 5.0% on a year-over-year basis. DXC Technology has set its Q2 2027 guidance at 0.550-0.550 EPS. As a group, analysts predict that DXC Technology Company. will post 2.61 earnings per share for the current year.

Institutional Investors Weigh In On DXC Technology

Hedge funds and other institutional investors have recently modified their holdings of the stock. Nykredit A S bought a new stake in shares of DXC Technology in the second quarter worth about $51,580,000. BlackRock Inc. increased its holdings in DXC Technology by 21.5% during the 2nd quarter. BlackRock Inc. now owns 28,276,735 shares of the company’s stock valued at $250,249,000 after purchasing an additional 4,994,936 shares during the period. State Street Corp raised its position in DXC Technology by 25.0% during the 2nd quarter. State Street Corp now owns 7,683,280 shares of the company’s stock valued at $67,997,000 after purchasing an additional 1,536,243 shares during the last quarter. Bank of America Corp DE bought a new position in DXC Technology during the 2nd quarter valued at approximately $11,706,000. Finally, SEB Asset Management AB bought a new position in DXC Technology during the 1st quarter valued at approximately $12,103,000. Institutional investors own 96.20% of the company’s stock.

About DXC Technology

DXC Technology (NYSE:DXC) is a global information technology services company that helps businesses and government organizations modernize and manage their technology environments. Its services include IT consulting, systems integration, cloud computing, cybersecurity, data and analytics, application development and management, and workplace and infrastructure services.

The company supports clients in moving workloads to public, private and hybrid cloud environments, improving digital customer experiences, automating business processes and managing complex technology operations.