Zacks Investment Research Lowers CSRA Inc. (CSRA) to Hold
CSRA Inc. (NYSE:CSRA) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Friday.
According to Zacks, “CSRA is the largest pure play government IT service provider. The company’s deep domain knowledge and expertise in next-generation IT services is aiding it to win new contracts on a regular basis, the most recent one being a $115 million contract from the U.S. Environmental Protection Agency (EPA). Additionally, partnerships with technology companies like Microsoft, Amazon and Oracle is a key growth driver. Moreover, anticipated improvement in federal spending is a positive for the company. However, near-term uncertainty over the renewal of Greenway contract and delay in TSA contract are headwinds. The lower recompete win rate is a concern in our view. Notably, the company has underperformed the industry on a year-to-date basis.”
Other equities analysts have also issued reports about the company. Royal Bank Of Canada reaffirmed a “buy” rating and set a $38.00 target price on shares of CSRA in a report on Sunday, August 6th. SunTrust Banks, Inc. raised CSRA from a “hold” rating to a “buy” rating and increased their price target for the company from $34.00 to $39.00 in a research note on Friday. Finally, Cowen and Company reaffirmed a “market perform” rating and set a $35.00 price target (up from $32.00) on shares of CSRA in a research note on Thursday, August 10th. Three investment analysts have rated the stock with a hold rating and six have issued a buy rating to the company’s stock. The company has a consensus rating of “Buy” and an average price target of $36.00.
CSRA (NYSE:CSRA) traded up 1.471% during midday trading on Friday, reaching $32.075. The company’s stock had a trading volume of 1,169,311 shares. The company has a 50 day moving average of $32.10 and a 200-day moving average of $30.70. CSRA has a 1-year low of $24.48 and a 1-year high of $33.67. The company has a market capitalization of $5.24 billion, a P/E ratio of 16.706 and a beta of 1.95.
CSRA (NYSE:CSRA) last announced its quarterly earnings data on Wednesday, August 9th. The technology company reported $0.48 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.45 by $0.03. CSRA had a return on equity of 101.22% and a net margin of 6.36%. The firm had revenue of $1.23 billion for the quarter, compared to analysts’ expectations of $1.24 billion. During the same quarter in the prior year, the firm posted $0.48 earnings per share. CSRA’s revenue for the quarter was down 2.0% compared to the same quarter last year. Equities research analysts anticipate that CSRA will post $1.96 earnings per share for the current fiscal year.
In related news, EVP John Reing sold 20,298 shares of the firm’s stock in a transaction that occurred on Friday, August 18th. The shares were sold at an average price of $31,822.00, for a total value of $645,922,956.00. Following the completion of the sale, the executive vice president now owns 4,587 shares of the company’s stock, valued at $145,967,514. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, EVP George Batsakis sold 28,392 shares of the firm’s stock in a transaction that occurred on Wednesday, August 23rd. The shares were sold at an average price of $31.42, for a total transaction of $892,076.64. The disclosure for this sale can be found here. Insiders own 0.40% of the company’s stock.
Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Ameritas Investment Partners Inc. acquired a new stake in CSRA during the 1st quarter worth $102,000. Northwestern Mutual Wealth Management Co. boosted its position in shares of CSRA by 52.2% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 3,698 shares of the technology company’s stock worth $117,000 after purchasing an additional 1,269 shares in the last quarter. DekaBank Deutsche Girozentrale bought a new position in shares of CSRA during the second quarter worth $120,000. GLG Partners LP bought a new position in shares of CSRA during the second quarter worth $164,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank boosted its position in shares of CSRA by 11.7% during the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 5,781 shares of the technology company’s stock worth $184,000 after purchasing an additional 607 shares in the last quarter. 92.43% of the stock is owned by hedge funds and other institutional investors.
CSRA Inc is a provider of information technology services to the United States federal government. The Company operates through two segments: Defense and Intelligence, and Civil. The Defense and Intelligence segment provides services to the Department of Defense (DoD), National Security Agency, branches of the Armed Forces, and other DoD and Intelligence agencies.
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