DXC Technology Company (DXC) Stock: Here’s Why It’s Down

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DXC Technology Company (DXC) is making a move down in the market in today’s trading session. The stock, focused on the service space, is currently priced at $35.91 after tumbling -30.47% so far in today’s session. In terms of service stocks, there are quite a few factors that have the potential to generate declines in the market. One of the most common is news. Here are the most recent headlines centered around DXC:

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Aug-09-19 06:07PM 2 Stocks Decline Friday
04:36PM Wall Street Falls on Friday
01:27PM DXC Technology’s stock takes deepest dive in 18 years
12:24PM Why Shares of DXC Technology Crashed Today
12:19PM Stocks Finish Down in Volatile Session Over Trump’s China Stance

Nonetheless, when making a decision with regard to investing, prospective investors should look at much more than news, especially in the ever incredibly complex service sector. Here’s what’s happening with DXC Technology Company.

Recent Movement Out of DXC

Although a single session decline, like what we’re seeing from DXC Technology Company might make some investors unhappy, a single session fall by itself should not be the basis of a decision to, or not to, invest in a stock. It’s generally smart to look into trends experienced by the stock just a single trading day. When it comes to DXC, below are the movements that we have seen:

  • Past 7 Days – Over the past week, DXC has seen a change in price in the amount of -32.61%.
  • Monthly – The performance from DXC Technology Company over the last 30 days has been -35.27%.
  • Quarterly – In the past 3 months, the stock has generated a return on investment that works out to -39.17%
  • Past Six Months – Throughout the past 6 months, we’ve seen a performance of -48.11% from the company.
  • YTD – Since the close of last year DXC has resulted in a return on investment of -32.46%.
  • Annually – Lastly, in the last year, we’ve seen performance in the amount of -59.65% out of DXC. In this period of time, the stock has sold at a high price of -62.88% and a low price of -22.71%.

Key Ratios

Digging into various ratios having to do with a company generally gives investors an understanding of how dangerous and/or potentially profitable a stock pick may be. Here are a few of the most important ratios to look at when looking at DXC.

Short Ratio – The short ratio is a measure of short interest. The higher this ratio, the more investors have a belief that the value of the stock is going to go down. Throughout the sector, strong service stocks tend to come with a lower short ratio. On the other hand, we tend to see quite a few short squeezes in the sector. Nonetheless, in relation to DXC Technology Company, the stock’s short ratio comes to 1.98.

Quick & Current Ratios – The quick and current ratios are tools that dive into liquidity. Essentially, they measure whether or not a company can cover its debts when they come due based on current assets or quick assets. come with great current and quick ratios. As far as DXC, the quick and current ratios add up to 1.00 and 1.00 respectively.  

Book To Share Value – The book to share value ratio compares the value of assets currently owned by the company to the share price. In this case, that ratio is 42.43.

Cash To Share Value – The cash to share value comparison compares the amount of cash the company has on hand to the price of shares. In this case, the cash to share value ratio works out to 10.54.

Is Big Money Interested In DXC Technology Company

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in DXC, here’s what we’re seeing:

  • Institutions – At the moment, institutions hold 89.50% of DXC. Nonetheless, it is worth mentioning that institutional ownership has changed in the amount of 0.73% throughout the last quarter.
  • Insider Holdings – as it relates to insiders, members of the management team and others close to DXC currently own 0.60% of the company. Their ownership of the company has changed in the amount of -1.89% in the past 3 months.

What Analysts Think About DXC Technology Company

While it’s not a smart idea to avoid doing your due diligence and blindly following the opinions of analysts, it is a good idea to consider their opinions in order to validate your own opinions before making an investment decision in the service industry. Below are the most recent moves that we have seen from analysts as it relates to DXC.

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Aug-09-19 Downgrade KeyBanc Capital Markets Overweight → Sector Weight
Aug-09-19 Downgrade BMO Capital Markets Outperform → Market Perform $60 → $48
May-31-19 Reiterated BofA/Merrill Buy $75 → $64
Jan-08-19 Downgrade SunTrust Buy → Hold
Nov-26-18 Upgrade Cowen Market Perform → Outperform

Financial Performance

What have ween seen from DXC in terms of financial results?Here’s what we’ve seen:

  • Analyst Expectations – At the moment, analysts expect that the company will generate EPS coming to a total of 9.59, with 1.72 being reported in the next financial report. Although this information isn’t based on earnings, because we’re talking about Wall Street analysts, DXC Technology Company is presently graded as a 2.10 on a scale from 1 to 5 where 1 is the poorest Wall St. analyst grade and 5 is the best possible rating.
  • 5-Year Sales – Throughout the last 5 years, DXC Technology Company has generated a change in revenue that works out to be 9.80%. EPS through the past 5 years have experienced movement in the amount of -6.00%.
  • Q/Q – In terms of quarter over quarter earnings data, or Q/Q data as it is often explained in the human world, DXC Technology Company has experienced a change in earnings that amounts to -49.20%. DXC Technology Company has also seen movement in regard to sales that comes to a total of -5.40%.

How Many Shares Of DXC Are Available?

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 275.64M shares of DXC Technology Company outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, DXC has a float of 264.46M.

I also find it important to look at the short percentage of the float. Think about it, when a large portion of the float available for trading is sold short, the overall feeling in the market is that the stock is headed for a dive. As far as DXC, the percentage of the float that is sold short is 2.16%. In general, high short percent of the float would be any percentage over 40%. Nonetheless, I have calculated that anything over 26% is generally a a play that could prove to be very risky.

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