DST Systems, Inc. (DST) Upgraded to Buy by Zacks Investment Research
DST Systems, Inc. (NYSE:DST) was upgraded by Zacks Investment Research from a “sell” rating to a “buy” rating in a research note issued to investors on Tuesday. The firm presently has a $67.00 target price on the technology company’s stock. Zacks Investment Research‘s price objective indicates a potential upside of 14.53% from the stock’s previous close.
According to Zacks, “Worldwide provider of information processing software and systems, DST Systems has outperformed the industry over the past one month. Also, the estimates have moved north off late. 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.”
Several other research analysts also recently weighed in on DST. Robert W. Baird restated a “buy” rating and issued a $68.00 target price on shares of DST Systems in a research note on Thursday, October 12th. Morgan Stanley upped their target price on shares of DST Systems from $57.00 to $61.00 and gave the company an “equal weight” rating in a research note on Monday. Finally, BidaskClub downgraded shares of DST Systems from a “hold” rating to a “sell” rating in a research note on Thursday, July 27th. One equities research analyst has rated the stock with a sell rating, one has given a hold rating and four have assigned a buy rating to the company. The stock has a consensus rating of “Buy” and a consensus target price of $68.00.
Shares of DST Systems (NYSE DST) traded down 0.22% during trading on Tuesday, reaching $58.37. 31,714 shares of the company’s stock traded hands. The stock has a 50-day moving average of $54.36 and a 200-day moving average of $57.57. DST Systems has a 1-year low of $47.26 and a 1-year high of $122.11. The company has a market capitalization of $3.53 billion, a price-to-earnings ratio of 5.88 and a beta of 1.31.
DST Systems (NYSE:DST) last released its quarterly earnings data on Friday, October 20th. The technology company reported $0.76 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.73 by $0.03. DST Systems had a net margin of 21.26% and a return on equity of 16.20%. The company had revenue of $562.60 million during the quarter, compared to analyst estimates of $523.57 million. During the same quarter in the prior year, the business earned $0.77 earnings per share. The business’s quarterly revenue was up 45.5% compared to the same quarter last year. On average, equities analysts predict that DST Systems will post $3.08 EPS for the current fiscal year.
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Hedge funds have recently made changes to their positions in the company. KBC Group NV boosted its stake in shares of DST Systems by 11.4% in the second quarter. KBC Group NV now owns 35,961 shares of the technology company’s stock valued at $2,219,000 after purchasing an additional 3,671 shares during the period. Principal Financial Group Inc. boosted its stake in shares of DST Systems by 103.5% in the second quarter. Principal Financial Group Inc. now owns 266,543 shares of the technology company’s stock valued at $16,446,000 after purchasing an additional 135,587 shares during the period. Private Trust Co. NA purchased a new position in shares of DST Systems in the second quarter valued at $460,000. Virginia Retirement Systems ET AL boosted its stake in shares of DST Systems by 145.9% in the second quarter. Virginia Retirement Systems ET AL now owns 45,000 shares of the technology company’s stock valued at $2,777,000 after purchasing an additional 26,700 shares during the period. Finally, ARGA Investment Management LP boosted its stake in shares of DST Systems by 108.9% in the second quarter. ARGA Investment Management LP now owns 18,800 shares of the technology company’s stock valued at $1,159,000 after purchasing an additional 9,800 shares during the period. Institutional investors and hedge funds own 84.23% of the company’s stock.
About DST Systems
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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