DST Systems, Inc. (NYSE:DST) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Tuesday, October 31st.
According to Zacks, “DST Systems is a worldwide provider of information processing software and systems. We believe that DST Systems’ business volume and massive scale of operation in Financial Services will attract new customers. Moreover, we expect steady contributions from acquisitions (BFDS and IFDS) to support revenue growth. Continued share buybacks and dividend payments are the other encouraging factors. The company also has a strong business model. It generates recurring revenues and a good percentage of its business comes from long-term contracts with its customers. The model ensures a minimum revenue level even when there are limited transactions. However, persistent decline in registered accounts, a high debt burden, ongoing consolidation in the U.S. financial services market and stiff competition from peers might put its fundamentals under pressure. Notably, shares of the company has underpreformed the industry over the past one year.”
Several other research analysts have also commented on DST. BidaskClub lowered DST Systems from a “hold” rating to a “sell” rating in a research report on Thursday, July 27th. Robert W. Baird reaffirmed a “buy” rating and set a $68.00 target price on shares of DST Systems in a research report on Thursday, October 12th. Finally, Morgan Stanley upped their target price on DST Systems from $57.00 to $61.00 and gave the company an “equal weight” rating in a research report on Monday, October 23rd. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating and three have given a buy rating to the stock. DST Systems currently has a consensus rating of “Hold” and an average price target of $68.00.
DST Systems (NYSE:DST) traded up $0.08 on Tuesday, hitting $59.77. The stock had a trading volume of 215,850 shares, compared to its average volume of 386,716. The company has a market cap of $3,599.36, a price-to-earnings ratio of 19.44, a price-to-earnings-growth ratio of 1.94 and a beta of 1.35. The company has a current ratio of 1.09, a quick ratio of 1.09 and a debt-to-equity ratio of 0.42. DST Systems has a 52-week low of $50.22 and a 52-week high of $62.94.
DST Systems (NYSE:DST) last released its quarterly earnings results on Friday, October 20th. The technology company reported $0.76 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.73 by $0.03. The firm had revenue of $562.60 million during the quarter, compared to analyst estimates of $523.57 million. DST Systems had a return on equity of 16.20% and a net margin of 21.26%. The business’s revenue for the quarter was up 45.5% compared to the same quarter last year. During the same period in the previous year, the company posted $0.77 EPS. research analysts forecast that DST Systems will post 3.08 earnings per share for the current fiscal year.
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Several institutional investors and hedge funds have recently modified their holdings of the company. People s United Financial Inc. increased its holdings in shares of DST Systems by 3.5% in the second quarter. People s United Financial Inc. now owns 12,959 shares of the technology company’s stock valued at $800,000 after purchasing an additional 443 shares during the last quarter. Stevens Capital Management LP increased its holdings in shares of DST Systems by 3.7% in the second quarter. Stevens Capital Management LP now owns 14,902 shares of the technology company’s stock valued at $919,000 after purchasing an additional 538 shares during the last quarter. First Bank & Trust increased its stake in DST Systems by 99.8% during the second quarter. First Bank & Trust now owns 1,718 shares of the technology company’s stock worth $106,000 after acquiring an additional 858 shares during the last quarter. Oppenheimer & Co. Inc. increased its stake in DST Systems by 3.1% during the third quarter. Oppenheimer & Co. Inc. now owns 30,764 shares of the technology company’s stock worth $1,688,000 after acquiring an additional 914 shares during the last quarter. Finally, Zurcher Kantonalbank Zurich Cantonalbank increased its stake in DST Systems by 119.4% during the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 2,326 shares of the technology company’s stock worth $144,000 after acquiring an additional 1,266 shares during the last quarter. Hedge funds and other institutional investors own 85.39% of the company’s stock.
DST Systems Company Profile
DST Systems, Inc (DST) is a provider of technology-based information processing and servicing solutions. The Company offers its solutions through data management, business processing and customer communications solutions to clients within the asset management, brokerage, retirement and healthcare markets.
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