DST Systems Inc. (DST) Downgraded to Hold at Zacks Investment Research
DST Systems Inc. (NYSE:DST) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Tuesday.
According to Zacks, “DST Systems is one of the leading global providers of sophisticated information processing software and systems to the financial services industry, primarily mutual funds and investment managers. Off late, estimates for the company have been stable. We opine that DST Systems’ business volume and massive scale of operation in Financial Services will attract new customers. We also expect steady contributions from acquisitions to support revenue growth. Continued share buybacks and dividend payments should provide further tailwinds. Nonetheless, persistent decline in registered accounts, ongoing consolidation in the U.S. financial services market and stiff competition may put its fundamentals under pressure.”
DST has been the subject of several other research reports. Morgan Stanley reiterated a “hold” rating on shares of DST Systems in a research report on Wednesday, June 15th. Robert W. Baird reiterated an “outperform” rating and issued a $132.00 price target on shares of DST Systems in a research report on Monday, June 27th.
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Shares of DST Systems (NYSE:DST) traded up 0.19% during mid-day trading on Tuesday, hitting $118.77. 47,264 shares of the stock traded hands. The firm’s 50 day moving average price is $121.15 and its 200 day moving average price is $117.75. The firm has a market cap of $3.87 billion, a price-to-earnings ratio of 16.26 and a beta of 1.24. DST Systems has a 12-month low of $97.32 and a 12-month high of $128.66.
DST Systems (NYSE:DST) last released its quarterly earnings results on Thursday, July 21st. The company reported $1.58 EPS for the quarter, beating the consensus estimate of $1.50 by $0.08. DST Systems had a net margin of 9.90% and a return on equity of 21.20%. The firm earned $526.20 million during the quarter, compared to the consensus estimate of $545.57 million. During the same quarter in the prior year, the firm earned $1.39 EPS. DST Systems’s revenue for the quarter was up 7.0% on a year-over-year basis. On average, equities research analysts predict that DST Systems will post $5.67 EPS for the current fiscal year.
The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 15th. Shareholders of record on Friday, August 26th were given a dividend of $0.33 per share. The ex-dividend date of this dividend was Wednesday, August 24th. This represents a $1.32 dividend on an annualized basis and a yield of 1.11%. DST Systems’s payout ratio is currently 18.08%.
In other DST Systems news, insider Vercie L. Lark sold 15,210 shares of the company’s stock in a transaction on Wednesday, August 24th. The shares were sold at an average price of $120.34, for a total transaction of $1,830,371.40. Following the completion of the transaction, the insider now owns 29,600 shares in the company, valued at approximately $3,562,064. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Gregg Wm Givens sold 534 shares of the company’s stock in a transaction on Wednesday, August 3rd. The stock was sold at an average price of $121.41, for a total transaction of $64,832.94. Following the transaction, the chief financial officer now owns 73,385 shares of the company’s stock, valued at approximately $8,909,672.85. The disclosure for this sale can be found here. Company insiders own 1.83% of the company’s stock.
A number of institutional investors have recently made changes to their positions in DST. Wade G W & Inc. increased its position in shares of DST Systems by 0.3% in the second quarter. Wade G W & Inc. now owns 2,894 shares of the company’s stock worth $337,000 after buying an additional 8 shares during the last quarter. Meeder Asset Management Inc. increased its position in shares of DST Systems by 4.7% in the second quarter. Meeder Asset Management Inc. now owns 1,645 shares of the company’s stock worth $192,000 after buying an additional 74 shares during the last quarter. Metropolitan Life Insurance Co. NY increased its position in shares of DST Systems by 0.3% in the first quarter. Metropolitan Life Insurance Co. NY now owns 30,013 shares of the company’s stock worth $3,385,000 after buying an additional 80 shares during the last quarter. Northwest Investment Counselors LLC increased its position in shares of DST Systems by 1.6% in the second quarter. Northwest Investment Counselors LLC now owns 5,238 shares of the company’s stock worth $610,000 after buying an additional 80 shares during the last quarter. Finally, Cambridge Investment Research Advisors Inc. increased its position in shares of DST Systems by 4.3% in the second quarter. Cambridge Investment Research Advisors Inc. now owns 2,178 shares of the company’s stock worth $254,000 after buying an additional 90 shares during the last quarter. Institutional investors own 86.47% 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 unified data management, business processing and customer communications solutions to clients within the asset management, brokerage, retirement and healthcare markets.
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