Softcat (LON:SCT) Stock Keeps “Hold” Rating at Jefferies Financial Group

Softcat (LON:SCT)‘s stock had its “hold” rating restated by research analysts at Jefferies Financial Group in a research report issued to clients and investors on Wednesday, Digital Look reports. They presently have a GBX 1,700 target price on the stock.

A number of other equities analysts also recently weighed in on SCT. Berenberg Bank boosted their price target on Softcat from GBX 1,950 to GBX 2,400 and gave the stock a “buy” rating in a research report on Monday, September 21st. JPMorgan Chase & Co. upped their price objective on shares of Softcat from GBX 1,950 to GBX 2,300 and gave the company an “overweight” rating in a report on Monday, September 7th. Finally, Deutsche Bank Aktiengesellschaft lowered Softcat to a “hold” rating and increased their target price for the stock from GBX 1,800 to GBX 2,140 in a research note on Wednesday, August 26th. Four equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of GBX 2,078.57.

Softcat Price Performance

Shares of Softcat stock opened at GBX 1,700 on Wednesday. The firm has a market cap of £3.66 billion, a P/E ratio of 24.25, a price-to-earnings-growth ratio of 11.51 and a beta of 0.58. The firm’s 50-day simple moving average is GBX 1,929.51 and its 200-day simple moving average is GBX 1,742.36. Softcat has a twelve month low of GBX 1,083 and a twelve month high of GBX 2,134. The company has a debt-to-equity ratio of 10.41, a quick ratio of 1.38 and a current ratio of 1.39.

Softcat (LON:SCT) last released its earnings results on Wednesday, October 14th. The company reported GBX 75.80 earnings per share for the quarter. Softcat had a return on equity of 46.24% and a net margin of 7.61%. As a group, research analysts expect that Softcat will post 60.72 EPS for the current fiscal year.

Insider Activity

In other Softcat news, insider Graeme Watt purchased 5,291 shares of the company’s stock in a transaction that occurred on Friday, October 16th. The shares were bought at an average cost of GBX 1,890 per share, for a total transaction of £99,999.90. Also, insider Lynne Weedall acquired 1,058 shares of the company’s stock in a transaction dated Friday, October 16th. The shares were bought at an average cost of GBX 1,890 per share, with a total value of £19,996.20. Over the last three months, insiders have bought 12,816 shares of company stock worth $24,246,219. 2.91% of the stock is owned by company insiders.

Softcat News Roundup

Here are the key news stories impacting Softcat this week:

• Positive Sentiment: Seven Softcat insiders, including senior directors, collectively bought 12,432 shares at GBX 1,890 each, investing approximately £225,000. The coordinated purchases may signal confidence in the company’s valuation and prospects.
• Positive Sentiment: Berenberg reaffirmed its “Buy” rating and set a GBX 2,400 price target, implying substantial upside from recent trading levels. The recommendation reinforces the case that the recent share-price weakness may have been overdone.
• Positive Sentiment: Recent analysis continues to highlight potential long-term growth in the IT-reseller sector, supported by demand for artificial intelligence and technology services. Softcat stock analysis
• Neutral Sentiment: Softcat issued 12,432 new ordinary shares following director subscriptions, lifting the share count to about 215.7 million. The transactions demonstrate director participation but create a small amount of dilution for existing shareholders. Softcat director equity subscription
• Neutral Sentiment: Jefferies reaffirmed its “Hold” rating, providing a more cautious counterpoint to Berenberg’s bullish stance. Softcat Hold rating
• Negative Sentiment: Investors are focused on the risk of a margin squeeze in the upcoming fiscal-year results. Pressure on profitability could offset otherwise solid revenue growth and weigh on earnings expectations. Softcat faces FY results margin squeeze

About Softcat

Softcat plc operates as a value-added IT reseller and IT infrastructure solutions provider in the United Kingdom. The company advices, procures, designs, implements, and manages technology, such as software licensing, workplace technology, networking, security, and cloud and datacenter for businesses and public sector organizations. It also offers public cloud, collaboration, connectivity, data centre and private cloud, devices, and financial solution services. In addition, the company provides IT asset management, lifecycle solutions, modern management, security, software licensing, supply chain operation, and virtual desktop and application.