Insider Buying: Softcat (LON:SCT) Insider Purchases £9,998.10 in Stock

Softcat plc (LON:SCT) insider Jacqui Ferguson acquired 529 shares of the firm’s stock in a transaction dated Friday, October 16th. The shares were purchased at an average price of GBX 1,890 per share, with a total value of £9,998.10.

Softcat Price Performance

Shares of LON:SCT opened at GBX 1,700 on Monday. The company has a quick ratio of 1.38, a current ratio of 1.39 and a debt-to-equity ratio of 10.41. Softcat plc has a twelve month low of GBX 1,083 and a twelve month high of GBX 2,134. The stock’s 50 day moving average is GBX 1,929.51 and its 200-day moving average is GBX 1,746.25. The firm has a market capitalization of £3.66 billion, a price-to-earnings ratio of 24.25, a PEG ratio of 11.51 and a beta of 0.58.

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

Analyst Upgrades and Downgrades

A number of research firms have weighed in on SCT. Deutsche Bank Aktiengesellschaft lowered shares of Softcat to a “hold” rating and raised their price objective for the company from GBX 1,800 to GBX 2,140 in a research note on Wednesday, August 26th. Jefferies Financial Group reissued a “hold” rating and set a GBX 1,700 target price on shares of Softcat in a research report on Wednesday, October 14th. JPMorgan Chase & Co. upped their target price on shares of Softcat from GBX 1,950 to GBX 2,300 and gave the stock an “overweight” rating in a report on Monday, September 7th. Finally, Berenberg Bank restated a “buy” rating and issued a GBX 2,400 target price on shares of Softcat in a report on Friday. Four equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of GBX 2,078.57.

Key Softcat News

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

Softcat Company Profile

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.