Technical Outlook And Game Plan For DXC Technology Company (NYSE: DXC)

Glenview Capital Management LLC has recently announced that it has increased stake in DXC Technology Company (NYSE:DXC) by 8.68%. After grabbing 9.73 million shares, the institutional investor is now in possession of 0.78 million shares of the Technology Company. The new investment brought the stake of investor firm to 4.62% having worth around $269.16 million. Moreover, Invesco Advisers, Inc. increased its share by 0.13 million to have a control over 8.57 million shares. And SSgA Funds Management, Inc. raised its holdings to 0.18 million shares by acquiring 8.1 million shares or 3.85% of the stake.

DXC Technology Company (DXC) concluded trading on 09/14/23 at a closing price of $20.69, with 3.88 million shares of worth about $80.36 million changed hands on the day. Half year performance of the stock remained negative as price took a plunge of -11.32% during that period and on Thursday the price saw a gain of about 3.55%. Currently the company’s common shares owned by public are about 210.11M shares, out of which, 203.03M shares are available for trading.

A deeper look into what the analysts at Wall Street are thinking about the price target of this stock provides us with the following: 15 analysts are covering the DXC stock and their offered price forecasts bring an average price target of $24.92. Over the next 12 months, analysts forecasted that the stock’s price could jump as high as $30.00 and could fall to a lowest price of $21.00. The stock’s current price level is 18.25% above of average price target set by the analysts, while a rise to estimated low would result in gain of 1.48% for the stock. However, touching the estimated high of $30.00 would mean a gain of 31.03% for the stock.

According to filings with the U.S. Securities and Exchange Commission (SEC), insiders took part in trade of the company’s stock for 65 times over the past 12 months. They bought 1,738,571 shares in 28 of the transactions. In 37 selling transactions, insiders dumped 716,384 shares.

Vanguard Total Stock Market ETF, Templeton Growth Fund Inc., and Vanguard Small Cap Index Fund are the top 3 mutual funds which are holding stakes in DXC Technology Company Vanguard Total Stock Market ETF is currently holding 6.65 million shares of worth totaling $183.93 million. The company recently came selling 8341.0 shares which brought its stake up to 3.16% of the company’s outstanding shares. Vanguard Small Cap Index Fund, after buying 5.48 million shares, have now control over 2.60% of the stake in the company. It holds 22786.0 shares of worth $151.53 million.

DXC Technology Company (NYSE: DXC) started trading at $20.21, above $0.23 from concluding price of the previous day. However, the stock later moved at a day high price of 20.70, or with a gain of 3.55%. Stock saw a price change of 1.42% in past 5 days and over the past one month there was a price change of 1.72%. Year-to-date (YTD), DXC shares are showing a performance of -21.92% which decreased to -24.07% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $18.61 but also hit the highest price of $30.27 during that period. The average intraday trading volume for DXC Technology Company shares is 2.28 million. The stock is currently trading 0.57% above its 20-day simple moving average (SMA20), while that difference is down -11.80% for SMA50 and it goes to -19.13% lower than SMA200.

Glenview Capital Management LLC acquired 9.73 million shares of DXC Technology Company having value of about $269.16 million. Data submitted at the U.S SEC by Glenview Capital Management LLC revealed that the firm now holds 0.78 million shares in the company valued at close to $16081799.06, or have control over 8.68% stake in the company. DXC Technology Company (NYSE: DXC) currently have 210.11M outstanding shares and institutions hold larger chunk of about 94.40% of that. Holding of mutual funds in the company is about 33.16% while other institutional holders and individual stake holders have control over 56.96% and 2.53% of the stake respectively.

The stock has a current market capitalization of $4.21B and its 3Y-monthly beta is at 1.98. It has posted earnings per share of -$3.11 in the same period. It has Quick Ratio of 1.10 while making debt-to-equity ratio of 1.40. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for DXC, volatility over the week remained 2.40% while standing at 2.05% over the month.

Analysts are in expectations that DXC Technology Company (DXC) stock would likely to be making an EPS of $0.67 in the current quarter, while forecast for next quarter EPS is $0.89 and it is $3.93 for next year. For the current quarter EPS, analysts have given the company a lowest target $0.65 which is $0.75 at the higher side of the target for the same. When we compare those targets with actual EPS, we find that company posted an EPS of $0.75 in the same quarter a year ago. Stock’s fiscal year EPS is expected to drop by -198.60% while it is estimated to increase by 22.85% in next year. EPS is likely to grow at an annualized rate of 4.62% for next 5-years, compared to annual growth of -20.30% made by the stock over the past 5-years.

Analysts at 15 brokerage firms have issued recommendations for the DXC Technology Company (DXC)’s stock and average of those rates the stock at a “Hold” and assign it a score of 3.10. Out of those 15 Wall Street analysts, 0 recommended a “Buy” rating, while 13 were in favor recommending the stock as a “Hold” and 1 analyst recommended the stock as “Sell”.

Digging deeper we find that several firms have released their research notes about the support levels of the stock. Most recent of them is a note released by TD Cowen on August 03, 2023 offering a Market perform rating for the stock and assigned a target price range of between $34 and $25 to it.