Royal Bank Of Canada Has Lowered Expectations for DXC Technology (NYSE:DXC) Stock Price

DXC Technology (NYSE:DXC) had its price objective lowered by stock analysts at Royal Bank Of Canada from $16.00 to $14.00 in a research note issued to investors on Friday,Benzinga reports. The brokerage currently has a “sector perform” rating on the stock. Royal Bank Of Canada’s price target would suggest a potential upside of 24.06% from the company’s previous close.

Several other equities research analysts also recently weighed in on DXC. Zacks Research raised DXC Technology from a “strong sell” rating to a “hold” rating in a research report on Monday, July 13th. BMO Capital Markets decreased their price target on DXC Technology from $17.00 to $10.00 and set a “market perform” rating for the company in a report on Monday, May 11th. Stifel Nicolaus decreased their price target on DXC Technology from $12.00 to $10.50 and set a “hold” rating for the company in a report on Friday. TD Cowen lowered their price objective on shares of DXC Technology from $11.00 to $10.00 and set a “hold” rating for the company in a research report on Thursday, July 9th. Finally, Weiss Ratings lowered shares of DXC Technology from a “sell (d+)” rating to a “sell (d)” rating in a research note on Monday, May 11th. Seven investment analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat, DXC Technology currently has a consensus rating of “Reduce” and a consensus target price of $11.81.

DXC Technology Trading Up 0.4%

Shares of DXC stock traded up $0.04 during mid-day trading on Friday, reaching $11.29. The company’s stock had a trading volume of 4,388,206 shares, compared to its average volume of 3,918,246. The company’s 50 day simple moving average is $9.40 and its 200-day simple moving average is $11.44. DXC Technology has a 12-month low of $7.90 and a 12-month high of $15.68. The company has a quick ratio of 1.36, a current ratio of 1.36 and a debt-to-equity ratio of 0.94. The firm has a market capitalization of $1.84 billion, a PE ratio of 188.92 and a beta of 0.82.

DXC Technology (NYSE:DXC) last posted its earnings results on Thursday, July 30th. The company reported $0.40 earnings per share for the quarter, missing the consensus estimate of $0.42 by ($0.02). DXC Technology had a net margin of 0.14% and a return on equity of 17.24%. The business had revenue of $3 billion for the quarter, compared to analyst estimates of $2.99 billion. During the same quarter in the previous year, the firm posted $0.68 EPS. The business’s revenue was down 5.0% compared to the same quarter last year. DXC Technology has set its Q2 2027 guidance at 0.550-0.550 EPS. On average, research analysts predict that DXC Technology will post 2.61 EPS for the current fiscal year.

Insiders Place Their Bets

In other DXC Technology news, CEO Raul J. Fernandez bought 28,051 shares of the stock in a transaction dated Monday, May 11th. The stock was bought at an average cost of $8.90 per share, for a total transaction of $249,653.90. Following the completion of the purchase, the chief executive officer directly owned 844,052 shares of the company’s stock, valued at approximately $7,512,062.80. The trade was a 3.44% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. 1.13% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of DXC. Versant Capital Management Inc boosted its holdings in DXC Technology by 47.4% in the second quarter. Versant Capital Management Inc now owns 7,474 shares of the company’s stock valued at $66,000 after purchasing an additional 2,404 shares during the last quarter. Glenmede Trust Co. NA increased its holdings in DXC Technology by 13.3% during the 1st quarter. Glenmede Trust Co. NA now owns 880,260 shares of the company’s stock worth $11,065,000 after purchasing an additional 103,221 shares during the last quarter. Access Investment Management LLC purchased a new stake in DXC Technology during the 1st quarter worth approximately $6,256,000. Bank of America Corp DE raised its position in shares of DXC Technology by 41.1% in the 1st quarter. Bank of America Corp DE now owns 1,074,481 shares of the company’s stock valued at $13,506,000 after purchasing an additional 313,078 shares in the last quarter. Finally, Amundi raised its position in shares of DXC Technology by 79.4% in the 1st quarter. Amundi now owns 45,502 shares of the company’s stock valued at $572,000 after purchasing an additional 20,143 shares in the last quarter. Institutional investors and hedge funds own 96.20% of the company’s stock.

Key Stories Impacting DXC Technology

Here are the key news stories impacting DXC Technology this week:

• Positive Sentiment: DXC generated $314 million in free cash flow during fiscal Q1 2027, up from $97 million a year earlier, and repurchased $70 million of stock. Management also raised its full-year free-cash-flow outlook to approximately $685 million. DXC Technology Reports First Quarter Fiscal Year 2027 Results
• Positive Sentiment: First-quarter bookings rose 5% year over year to $3.0 billion, with a 0.99x book-to-bill ratio. DXC also pointed to momentum in its AI platform and announced a strategic partnership with ElevenLabs, strengthening its AI-focused growth narrative. DXC and ElevenLabs Announce Strategic Partnership
• Positive Sentiment: New leadership appointments, including Paul Taylor as president, are intended to accelerate DXC’s AI-centric strategy and streamline operations. Some hedge-fund investors remain bullish despite the stock’s year-to-date decline, viewing the valuation and turnaround potential as attractive. DXC Announces Leadership Appointments
• Neutral Sentiment: Revenue of approximately $3.0 billion was broadly in line with estimates, although it declined 5.1% year over year and 6.7% organically. This suggests that cost and cash-flow improvements are occurring while demand remains soft. DXC Technology Q1 Earnings Miss Estimates
• Negative Sentiment: Non-GAAP earnings of $0.40 per share missed the $0.42 consensus estimate and fell 41.2% from the prior year’s $0.68. The earnings miss and lower profitability are likely weighing on investor sentiment. DXC Technology Earnings Report
• Negative Sentiment: Fiscal Q2 adjusted EPS guidance of $0.55 is well below the $0.71 analyst consensus. Management also expects fiscal 2027 organic revenue to decline 3%–5%, reinforcing concerns about continued contraction in the core business. DXC Fiscal 2027 Outlook

DXC Technology Company Profile

DXC Technology, headquartered in Tysons Corner, Virginia, is a global leader in IT services and solutions. The company was formed in 2017 through the merger of Computer Sciences Corporation (CSC) and the Enterprise Services business of Hewlett Packard Enterprise, combining decades of experience in consulting, systems integration and managed services. Since its inception, DXC has focused on helping clients modernize IT environments and drive digital transformation across their organizations.

DXC Technology’s core service offerings encompass cloud and platform services, applications and analytics, security, and workplace and mobility solutions.