Considering DXC Technology Company (DXC) as a potential investment: What Should You Do?

After finishing at $23.33 in the prior trading day, DXC Technology Company (NYSE: DXC) closed at $23.47, up 0.60%. In other words, the price has increased by $+0.14 from its previous closing price. On the day, 2774263 shares were traded. DXC stock price reached its highest trading level at $23.62 during the session, while it also had its lowest trading level at $22.51.

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Our goal is to gain a better understanding of DXC by taking a closer look at its different ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 2.64 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 10.69. For the most recent quarter (mrq), Quick Ratio is recorded 1.10 and its Current Ratio is at 1.10. In the meantime, Its Debt-to-Equity ratio is 1.02 whereas as Long-Term Debt/Eq ratio is at 0.83.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for the company, MoffettNathanson on January 19, 2023, Downgraded its rating to Underperform and sets its target price to $28 from $32 previously.

On December 15, 2022, JP Morgan Upgraded its rating to Neutral which previously was Underweight and also upped its target price recommendation from $31 to $33.

Susquehanna Downgraded its Positive to Neutral on September 16, 2022, whereas the target price for the stock was revised from $39 to $31.

Insider Transactions:

The insider trade also gives investors a glimpse into the future direction of stock prices, which can be beneficial to investors. A recent insider transaction in this stock occurred on Feb 09 when DECKELMAN WILLIAM L JR sold 33,331 shares for $29.05 per share. The transaction valued at 968,282 led to the insider holds 157,128 shares of the business.

FERNANDEZ RAUL J sold 5,000 shares of DXC for $148,750 on Nov 23. The Director now owns 47,092 shares after completing the transaction at $29.75 per share. On Nov 11, another insider, FERNANDEZ RAUL J, who serves as the Director of the company, sold 10,000 shares for $29.39 each. As a result, the insider received 293,850 and left with 52,092 shares of the company.

Valuation Measures:

As of this moment, DXC’s Price-to-Earnings (P/E) ratio for their current fiscal year is 8.00, and their Forward P/E ratio for the next fiscal year is 5.86. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 0.92. For the stock, the TTM Price-to-Sale (P/S) ratio is 0.37 while its Price-to-Book (P/B) ratio in mrq is 1.16.

Stock Price History:

Over the past 52 weeks, DXC has reached a high of $36.00, while it has fallen to a 52-week low of $22.65. The 50-Day Moving Average of the stock is 28.04, while the 200-Day Moving Average is calculated to be 28.32.

Shares Statistics:

The stock has traded on average 1.56M shares per day over the past 3-months and 1.78M shares per day over the last 10 days, according to various share statistics. A total of 229.54M shares are outstanding, with a floating share count of 226.41M. Insiders hold about 0.50% of the company’s shares, while institutions hold 94.40% stake in the company. Shares short for DXC as of Jan 12, 2023 were 7.63M with a Short Ratio of 7.61M, compared to 7.3M on Dec 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 3.35% and a Short% of Float of 3.82%.

Dividends & Splits

The current Payout Ratio is 0.00% for DXC, which recently paid a dividend on Apr 13, 2020 with an ex-dividend date of Mar 23, 2020. Stock splits for the company last occurred on May 31, 2018 when the company split stock in a 1156:1000 ratio.

Earnings Estimates

Its stock is currently analyzed by 12 different market analysts. On average, analysts expect EPS of $1.03 for the current quarter, with a high estimate of $1.1 and a low estimate of $1, while EPS last year was $0.84. The consensus estimate for the next quarter is $0.94, with high estimates of $1.11 and low estimates of $0.82.

Analysts are recommending an EPS of between $3.56 and $3.45 for the fiscal current year, implying an average EPS of $3.48. EPS for the following year is $3.99, with 12 analysts recommending between $4.41 and $3.64.

Revenue Estimates

10 analysts predict $3.62B in revenue for the current quarter. It ranges from a high estimate of $3.63B to a low estimate of $3.6B. As of the current estimate, DXC Technology Company’s year-ago sales were $4.01B, an estimated decrease of -9.60% from the year-ago figure. For the next quarter, 7 analysts are estimating revenue of $3.61B, a decrease of -2.60% over than the figure of -$9.60% in the same quarter last year. There is a high estimate of $3.71B for the next quarter, whereas the lowest estimate is $3.57B.

A total of 12 analysts have provided revenue estimates for DXC’s current fiscal year. The highest revenue estimate was $14.47B, while the lowest revenue estimate was $14.44B, resulting in an average revenue estimate of $14.46B. In the same quarter a year ago, actual revenue was $16.27B, down -11.10% from the average estimate. Based on 12 analysts’ estimates, the company’s revenue will be $14.44B in the next fiscal year. The high estimate is $14.5B and the low estimate is $14.35B. The average revenue growth estimate for next year is down -0.10% from the average revenue estimate for this year.