Softcat (LON:SCT) Share Price Crosses Below 50 Day Moving Average – Here’s Why

Shares of Softcat plc (LON:SCT) crossed below its 50-day moving average during trading on Tuesday . The stock has a 50-day moving average of GBX 1,434.33 and traded as low as GBX 1,394. Softcat shares last traded at GBX 1,399, with a volume of 468,200 shares traded.

Analysts Set New Price Targets

Several equities research analysts have commented on SCT shares. UBS Group restated a “sell” rating and issued a GBX 1,400 target price on shares of Softcat in a research note on Friday, October 17th. JPMorgan Chase & Co. upgraded shares of Softcat to an “overweight” rating and lifted their price objective for the company from GBX 2,820 to GBX 2,950 in a report on Thursday, December 4th. Peel Hunt restated a “buy” rating and set a GBX 2,135 target price on shares of Softcat in a report on Tuesday, November 18th. Jefferies Financial Group raised their target price on shares of Softcat from GBX 1,400 to GBX 1,450 and gave the company an “underperform” rating in a research report on Thursday, October 23rd. Finally, Shore Capital reissued a “buy” rating and set a GBX 1,925 price target on shares of Softcat in a research report on Wednesday, October 22nd. Six equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of GBX 1,902.22.

Softcat Trading Up 0.2%

The business’s 50 day simple moving average is GBX 1,434.33 and its 200 day simple moving average is GBX 1,536.21. The stock has a market cap of £2.80 billion, a price-to-earnings ratio of 21.18, a PEG ratio of 11.51 and a beta of 0.71. The company has a quick ratio of 1.38, a current ratio of 1.60 and a debt-to-equity ratio of 3.48.

Softcat (LON:SCT) last issued its earnings results on Wednesday, October 22nd. The company reported GBX 69.50 earnings per share (EPS) for the quarter. Softcat had a net margin of 12.37% and a return on equity of 43.79%. On average, research analysts expect that Softcat plc will post 60.72 EPS for the current fiscal year.

Insider Buying and Selling

In other Softcat news, insider Graham Charlton sold 15,919 shares of the company’s stock in a transaction that occurred on Friday, December 12th. The stock was sold at an average price of GBX 1,456, for a total value of £231,780.64. Also, insider Graeme Watt sold 20,213 shares of the firm’s stock in a transaction that occurred on Thursday, December 11th. The shares were sold at an average price of GBX 1,429, for a total value of £288,843.77. In the last three months, insiders have sold 46,069 shares of company stock worth $66,262,414. Company insiders own 2.81% of the company’s stock.

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.