Unsafe At Current Price? – DXC Technology Company (DXC), Citizens Financial Group Inc. (CFG)

DXC Technology Company (NYSE: DXC) shares are -49.93% down in the year-to-date (YTD) period and have moved 4.67% or $0.84 higher in the latest trading session. Comparatively, the stock is down -43.14% over the trailing 3-month period. If we look at the shorter duration, its week performance is 27.94% and 30.33% over the month.

Analyst Recommendations

On January 09, 2020, Wells Fargo recommended the DXC stock is a Underweight, while earlier, MoffettNathanson had Upgrade the stock as a Buy on March 12, 2020. 13 analysts offering the recommendations for the stock have a consensus rating of 2.30 to suggest that the DXC stock is a “Moderate Sell. 1 of the 13 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 8 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $18.82 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $29.54. The forecasts give the DXC Technology Company stock a price target range of $45.00 on the higher side while at least one analyst think the stock could plunge to a low of $15.00. The two limits represent an upside potential of 58.18% or -25.47%.

Earnings Forecast

Analysts estimate the earnings to increase 14.70% in the current quarter to $0.99, down from the $2.19 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $5.36, down -5.30% from $8.34 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between $0.7 and $1.45. Wall Street estimates earnings per share to be at an average of $5.15 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 74 over the last 12 months, while SEC filings reveal that there have been 25 insider sales over the same period. Insiders have purchases 1,168,158 shares while those sold by company executives and officers stand at 247,692. The last 3 months have seen insiders trade a total of 0 and 0 in purchases and sales respectively.

LAWRIE JOHN M, a President and CEO at the company, bought 3,300 shares worth $175824.0 at $53.28 per share on Aug 02. The President and CEO had earlier bought another 10,000 DXC shares valued at $495617.0 on Aug 06. The shares were bought at $49.56 per share. LAWRIE JOHN M (President and CEO) bought 1,100 shares at $54.92 per share on Aug 01 for a total of $60411.0 while LAWRIE JOHN M, (President and CEO) bought 100 shares on Jul 31 for $5500.0 with each share fetching $55.00.

Citizens Financial Group Inc. (NYSE:CFG), on the other hand, is trading around $23.33 with a market cap of $10.14B and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $27.22 and spell out a more modest performance – a 14.29% return. Some analysts are even forecasting $0.99 per share in earnings this year on a short term (1 year) basis.

Insider activity

Insiders have transacted a total of 72 times at Citizens Financial Group Inc. over the last 6 months, with insider purchases undertaken 59 times and accounting for 523,379 shares. Insider sales totaled 191,000 shares over the same period, with these deals completed in 13 transactions. Looking at these numbers, we realize that net purchases over that period are 46.0 shares. Insiders now hold a total of 1.93M shares after the latest sales, with 37.30% net shares purchased.

Major holders

Insiders own 0.50% of the company shares, while shares held by institutions stand at 99.90% with a share float percentage of 426.46M. Investors are also buoyed by the number of investors in a company, with Citizens Financial Group Inc. having a total of 939 institutions that hold shares in the company. The top two institutional holders are Vanguard Group, Inc. (The) with over 52.31 million shares worth more than $2.12 billion. As of Dec 30, 2019, Vanguard Group, Inc. (The) held 12.24% of shares outstanding.

The other major institutional holder is Blackrock Inc., with the investment firm holding over 40.29 million shares as of Dec 30, 2019. The firm’s total holdings are worth over $1.64 billion and represent 9.43% of shares outstanding.