Perhaps timely catching DXC Technology Company (DXC) would be a good idea

DXC Technology Company (NYSE: DXC) stock fell -3.88% on Tuesday to $28.01 against a previous-day closing price of $29.14. With 1.51 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.77 million shares. During the session, the Information Technology Services company that operates in wider Technology sector, reached to the highest price of $28.93 whereas the lowest price it dropped to was $28.00. The 52-week range on DXC shows that it touched its highest point at $39.65 and its lowest point at $22.65 during that stretch. It currently has a 1-year price target of $33.84. Beta for the stock currently stands at 1.95.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of DXC was down-trending over the past week, with a drop of -3.75%, but this was up by 4.55% over a month. Three-month performance dropped to -3.31% while six-month performance fell -10.11%. The stock lost -8.28% in the past year, while it has gained 5.70% so far this year. A look at the trailing 12-month EPS for DXC yields 3.07 with Next year EPS estimates of 4.59. For the next quarter, that number is 0.84. This implies an EPS growth rate of 562.80% for this year and 31.66% for next year. EPS is expected to grow by 13.46% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 39.00%.

Float and Shares Shorts:

At present, 229.96 million DXC shares are outstanding with a float of 228.72 million shares on hand for trading. On Oct 13, 2022, short shares totaled 8.21 million, which was 3.57% higher than short shares on Sep 14, 2022. In addition to Mr. Michael J. Salvino as the firm’s CEO, Pres & Chairman, Mr. Kenneth P. Sharp serves as its Exec. VP & CFO.


Institutional Ownership:

Through their ownership of 90.22% of DXC’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 55.04% of DXC, in contrast to 38.15% held by mutual funds. Shares owned by individuals account for 1.76%. As the largest shareholder in DXC with 10.95% of the stake, The Vanguard Group, Inc. holds 25,191,795 shares worth 25,191,795. A second-largest stockholder of DXC, Templeton Global Advisors Ltd., holds 14,147,382 shares, controlling over 6.15% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in DXC, holding 11,267,576 shares or 4.90% stake. With a 2.96% stake in DXC, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 6,809,525 shares are owned by the mutual fund manager. The Victory Sycamore Established Valu, which owns about 2.62% of DXC stock, is the second-largest Mutual Fund holder. It holds 6,020,000 shares valued at 159.53 million. Vanguard Small Cap Index Fund holds 2.51% of the stake in DXC, owning 5,777,917 shares worth 153.11 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DXC since 14 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 7 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With DXC analysts setting a high price target of $48.00 and a low target of $27.00, the average target price over the next 12 months is $33.91. Based on these targets, DXC could surge 71.37% to reach the target high and fall by -3.61% to reach the target low. Reaching the average price target will result in a growth of 21.06% from current levels.


EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. DXC will report FY 2023 earnings on 05/25/2023. Analysts have provided yearly estimates in a range of $3.55 being high and $3.45 being low. For DXC, this leads to a yearly average estimate of $3.48. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. DXC Technology Company surprised analysts by $0.01 when it reported $0.75 EPS against a consensus estimate of $0.74. The surprise factor in the prior quarter was -$0.06. Based on analyst estimates, the high estimate for the next quarter is $0.85 and the low estimate is $0.79. The average estimate for the next quarter is thus $0.83.

Summary of Insider Activity:

Insiders traded DXC stock several times over the past three months with 0 Buys and 8 Sells. In these transactions, 0 shares were bought while 49,910 shares were sold. The number of buy transactions has increased to 19 while that of sell transactions has risen to 33 over the past year. The total number of shares bought during that period was 386,718 while 275,175 shares were sold.

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