Key Points
- Insider buying: Softcat director Jacqui Ferguson purchased 529 shares at GBX 1,890 each, investing £9,998.10. Seven insiders collectively bought 12,432 shares at the same price, signaling confidence in the company.
- Analyst outlook is generally positive: Softcat has a consensus “Moderate Buy” rating and an average price target of GBX 2,078.57, though ratings range from Berenberg’s GBX 2,400 “Buy” target to Jefferies’ “Hold” rating and GBX 1,700 target.
- Key risk: Investors are watching for a potential margin squeeze in the upcoming fiscal-year results, which could pressure profitability and earnings expectations despite continued revenue growth.
Softcat plc (LON:SCT - Get Free Report) insider Jacqui Ferguson purchased 529 shares of Softcat stock in a transaction that occurred on Friday, October 16th. The shares were acquired at an average price of GBX 1,890 per share, with a total value of £9,998.10.
Softcat Trading Up 0.2%
Softcat stock opened at GBX 1,700 on Friday. The stock has a 50-day simple moving average of GBX 1,929.51 and a 200 day simple moving average of GBX 1,742.36. The stock has a market capitalization of £3.66 billion, a P/E ratio of 24.25, a PEG ratio of 11.51 and a beta of 0.58. The company has a debt-to-equity ratio of 10.41, a quick ratio of 1.38 and a current ratio of 1.39. Softcat plc has a 52 week low of GBX 1,083 and a 52 week high of GBX 2,134.
Softcat (LON:SCT - Get Free Report) last issued its earnings results on Wednesday, October 14th. The company reported GBX 75.80 EPS for the quarter. Softcat had a return on equity of 46.24% and a net margin of 7.61%. Analysts expect that Softcat plc will post 60.72 earnings per share for the current year.
Analysts Set New Price Targets
A number of equities analysts have commented on SCT shares. Berenberg Bank reaffirmed a "buy" rating and set a GBX 2,400 price objective on shares of Softcat in a research report on Friday. Jefferies Financial Group reissued a "hold" rating and issued a GBX 1,700 price objective on shares of Softcat in a research report on Wednesday. Deutsche Bank Aktiengesellschaft cut shares of Softcat to a "hold" rating and raised their target price for the stock from GBX 1,800 to GBX 2,140 in a research note on Wednesday, August 26th. Finally, JPMorgan Chase & Co. lifted their target price on shares of Softcat from GBX 1,950 to GBX 2,300 and gave the stock an "overweight" rating in a report on Monday, September 7th. Four analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of GBX 2,078.57.
Check Out Our Latest Analysis on SCT
More Softcat News
Here are the key news stories impacting Softcat this week:
- Positive Sentiment: Seven Softcat insiders, including senior directors, collectively bought 12,432 shares at GBX 1,890 each, investing approximately £225,000. The coordinated purchases may signal confidence in the company’s valuation and prospects.
- Positive Sentiment: Berenberg reaffirmed its “Buy” rating and set a GBX 2,400 price target, implying substantial upside from recent trading levels. The recommendation reinforces the case that the recent share-price weakness may have been overdone.
- Positive Sentiment: Recent analysis continues to highlight potential long-term growth in the IT-reseller sector, supported by demand for artificial intelligence and technology services. Softcat stock analysis
- Neutral Sentiment: Softcat issued 12,432 new ordinary shares following director subscriptions, lifting the share count to about 215.7 million. The transactions demonstrate director participation but create a small amount of dilution for existing shareholders. Softcat director equity subscription
- Neutral Sentiment: Jefferies reaffirmed its “Hold” rating, providing a more cautious counterpoint to Berenberg’s bullish stance. Softcat Hold rating
- Negative Sentiment: Investors are focused on the risk of a margin squeeze in the upcoming fiscal-year results. Pressure on profitability could offset otherwise solid revenue growth and weigh on earnings expectations. Softcat faces FY results margin squeeze
About Softcat
(
Get Free Report)
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.
Read More
This instant news alert was generated by narrative science technology and financial data from InsiderTrades.com in order to provide readers with the fastest and most accurate reporting. Please send any questions or comments about this story to [email protected].
