DXC Technology (NYSE:DXC) Shares Gap Up After Strong Earnings

DXC Technology (NYSE:DXC) gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $18.33, but opened at $20.63. DXC Technology shares last traded at $19.50, with a volume of 233,898 shares.

The company reported $0.74 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.57 by $0.17. The company had revenue of $3.24 billion during the quarter, compared to the consensus estimate of $3.14 billion. DXC Technology had a return on equity of 18.43% and a net margin of 0.67%.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on DXC shares. Susquehanna increased their price target on DXC Technology from $15.00 to $19.00 and gave the stock a “neutral” rating in a research report on Wednesday, June 12th. Royal Bank of Canada dropped their price target on shares of DXC Technology from $24.00 to $18.00 and set a “sector perform” rating on the stock in a research note on Friday, May 17th. Stifel Nicolaus cut their price target on shares of DXC Technology from $21.00 to $19.00 and set a “hold” rating for the company in a report on Friday, May 17th. TD Cowen decreased their price objective on shares of DXC Technology from $22.00 to $18.00 and set a “hold” rating on the stock in a report on Tuesday, May 21st. Finally, BMO Capital Markets lifted their target price on shares of DXC Technology from $17.50 to $22.00 and gave the company a “market perform” rating in a research report on Friday. Three investment analysts have rated the stock with a sell rating and seven have given a hold rating to the stock. According to data from MarketBeat, DXC Technology currently has a consensus rating of “Hold” and an average target price of $20.30.

Hedge Funds Weigh In On DXC Technology

A number of institutional investors and hedge funds have recently bought and sold shares of DXC. Mather Group LLC. boosted its stake in DXC Technology by 55.0% during the second quarter. Mather Group LLC. now owns 1,637 shares of the company’s stock worth $35,000 after buying an additional 581 shares during the period. Family Firm Inc. purchased a new position in shares of DXC Technology during the 2nd quarter worth approximately $37,000. Fifth Third Bancorp increased its holdings in DXC Technology by 40.1% in the 2nd quarter. Fifth Third Bancorp now owns 1,954 shares of the company’s stock valued at $37,000 after purchasing an additional 559 shares during the last quarter. GAMMA Investing LLC purchased a new stake in DXC Technology in the fourth quarter valued at approximately $49,000. Finally, Quarry LP acquired a new position in DXC Technology during the fourth quarter worth $51,000. 96.20% of the stock is currently owned by institutional investors and hedge funds.

DXC Technology Stock Performance

The company has a quick ratio of 1.17, a current ratio of 1.17 and a debt-to-equity ratio of 1.25. The firm has a 50-day moving average price of $18.57 and a 200 day moving average price of $19.77. The firm has a market capitalization of $3.54 billion, a PE ratio of 53.03, a price-to-earnings-growth ratio of 2.27 and a beta of 1.73.

DXC Technology Company Profile

DXC Technology Company, together with its subsidiaries, provides information technology services and solutions in the United States, the United Kingdom, rest of Europe, Australia, and internationally. It operates in two segments, Global Business Services (GBS) and Global Infrastructure Services (GIS).