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

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

A number of other equities research analysts have also recently issued reports on SCT. Berenberg Bank boosted their price objective on Softcat from GBX 1,950 to GBX 2,400 and gave the company a “buy” rating in a research note on Monday, September 21st. Deutsche Bank Aktiengesellschaft downgraded shares of Softcat to a “hold” rating and upped their price objective for the company from GBX 1,800 to GBX 2,140 in a report on Wednesday, August 26th. Finally, JPMorgan Chase & Co. increased their target price on shares of Softcat from GBX 1,950 to GBX 2,300 and gave the stock an “overweight” rating in a research report on Monday, September 7th. Four research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of “Hold” and an average price target of GBX 1,993.75.

Softcat Stock Performance

Shares of SCT traded up GBX 3 during mid-day trading on Wednesday, hitting GBX 1,700. The stock had a trading volume of 1,339,130 shares, compared to its average volume of 1,776,860. The firm has a market cap of £3.66 billion, a P/E ratio of 24.25, a PEG ratio of 11.51 and a beta of 0.58. The business has a fifty day moving average price of GBX 1,929.51 and a 200-day moving average price of GBX 1,742.36. The company has a debt-to-equity ratio of 10.41, a current ratio of 1.39 and a quick ratio of 1.38. Softcat has a 52 week low of GBX 1,083 and a 52 week high of GBX 2,134.

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

Insider Transactions at Softcat

In other news, insider Robyn Perriss acquired 1,058 shares of Softcat stock in a transaction that occurred on Friday, October 16th. The stock was bought at an average price of GBX 1,890 per share, with a total value of £19,996.20. Also, insider Graeme Watt bought 5,291 shares of the firm’s stock in a transaction on Friday, October 16th. The stock was acquired at an average price of GBX 1,890 per share, for a total transaction of £99,999.90. Over the last ninety days, insiders purchased 12,816 shares of company stock valued at $24,246,219. 2.91% of the stock is currently owned by company insiders.

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

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.