DST Systems, Inc. (NYSE:DST) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Monday.

According to Zacks, “DST Systems reported stellar third-quarter results. Further, revenues grew year over year, primarily due to BFDS and IFDS acquisitions. 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 to support revenue growth. Continued share buybacks and dividend payments are the other encouraging factors. However, persistent decline in registered accounts, ongoing consolidation in the U.S. financial services market and stiff competition from International Business Machines Corporation and Fiserv Inc. might put its fundamentals under pressure. Moreover, a high debt burden remains a major concern. Notably, DST Systems has underperformed the industry in the last one year.”

Other equities research analysts also recently issued research reports about the company. Robert W. Baird reissued a “buy” rating and issued a $72.00 price objective on shares of DST Systems in a report on Sunday. Morgan Stanley increased their price objective on DST Systems from $57.00 to $61.00 and gave the company an “equal weight” rating in a report on Monday. Finally, BidaskClub downgraded DST Systems from a “hold” rating to a “sell” rating in a report on Thursday, July 27th. Two analysts have rated the stock with a sell rating, one has given a hold rating and three have issued a buy rating to the company’s stock. DST Systems currently has an average rating of “Hold” and an average target price of $68.33.

DST Systems (DST) traded down 2.5656% during mid-day trading on Monday, hitting $58.4899. 312,512 shares of the company traded hands. The company’s 50-day moving average price is $54.18 and its 200 day moving average price is $57.63. DST Systems has a one year low of $47.26 and a one year high of $122.11. The company has a market capitalization of $3.54 billion, a price-to-earnings ratio of 5.8962 and a beta of 1.31.

DST Systems (NYSE:DST) last issued its quarterly earnings results on Friday, October 20th. The technology company reported $0.76 earnings per share for the quarter, topping the consensus estimate of $0.73 by $0.03. The company had revenue of $562.60 million during the quarter, compared to analysts’ expectations of $523.57 million. DST Systems had a net margin of 35.46% and a return on equity of 16.79%. The business’s quarterly revenue was up 45.5% on a year-over-year basis. During the same period last year, the business earned $0.77 EPS. On average, analysts anticipate that DST Systems will post $3.05 earnings per share for the current fiscal year.

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A number of institutional investors have recently made changes to their positions in DST. BlackRock Inc. lifted its holdings in DST Systems by 102.5% during the 2nd quarter. BlackRock Inc. now owns 5,347,693 shares of the technology company’s stock valued at $329,952,000 after purchasing an additional 2,707,284 shares during the last quarter. Vanguard Group Inc. lifted its holdings in DST Systems by 97.3% during the 2nd quarter. Vanguard Group Inc. now owns 5,287,278 shares of the technology company’s stock valued at $326,225,000 after purchasing an additional 2,608,072 shares during the last quarter. Wells Fargo & Company MN lifted its holdings in DST Systems by 100.8% during the 2nd quarter. Wells Fargo & Company MN now owns 3,489,936 shares of the technology company’s stock valued at $215,328,000 after purchasing an additional 1,751,490 shares during the last quarter. State Street Corp lifted its holdings in DST Systems by 93.6% during the 2nd quarter. State Street Corp now owns 1,765,321 shares of the technology company’s stock valued at $108,912,000 after purchasing an additional 853,405 shares during the last quarter. Finally, Bank of New York Mellon Corp lifted its holdings in DST Systems by 89.3% during the 2nd quarter. Bank of New York Mellon Corp now owns 1,791,789 shares of the technology company’s stock valued at $110,553,000 after purchasing an additional 845,267 shares during the last quarter. 84.99% of the stock is owned by institutional investors and hedge funds.

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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