CSRA Inc. (CSRA) Cut to Hold at Zacks Investment Research
Zacks Investment Research cut shares of CSRA Inc. (NYSE:CSRA) from a buy rating to a hold rating in a research report sent to investors on Monday.
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. This was evident from the recently announced first-quarter results. 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.”
A number of other equities research analysts have also weighed in on the company. Royal Bank Of Canada reiterated a buy rating on shares of CSRA in a research report on Tuesday, August 15th. Cowen and Company reiterated a market perform rating and issued a $35.00 price objective (up from $32.00) on shares of CSRA in a research report on Thursday, August 10th. Two equities research analysts have rated the stock with a hold rating and six have given a buy rating to the company. The company has a consensus rating of Buy and an average price target of $35.50.
Shares of CSRA (NYSE CSRA) opened at 31.33 on Monday. CSRA has a 12-month low of $24.48 and a 12-month high of $33.67. The stock has a 50 day moving average of $32.49 and a 200 day moving average of $30.58. The company has a market cap of $5.12 billion, a price-to-earnings ratio of 16.32 and a beta of 1.94.
CSRA (NYSE:CSRA) last announced its quarterly earnings results on Wednesday, August 9th. The technology company reported $0.48 EPS for the quarter, topping the Zacks’ consensus estimate of $0.45 by $0.03. The business had revenue of $1.23 billion for the quarter, compared to analysts’ expectations of $1.24 billion. CSRA had a return on equity of 101.22% and a net margin of 6.36%. The business’s quarterly revenue was down 2.0% on a year-over-year basis. During the same period in the previous year, the firm earned $0.48 EPS. On average, equities analysts expect that CSRA will post $1.97 earnings per share for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 3rd. Stockholders of record on Tuesday, August 29th will be given a $0.10 dividend. The ex-dividend date is Friday, August 25th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 1.28%. CSRA’s dividend payout ratio is currently 20.94%.
In other news, insider Lawrence B. Prior III purchased 49,500 shares of the company’s stock in a transaction that occurred on Friday, June 2nd. The shares were bought at an average cost of $30.50 per share, for a total transaction of $1,509,750.00. Following the completion of the transaction, the insider now directly owns 76,270 shares of the company’s stock, valued at approximately $2,326,235. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO David F. Keffer sold 20,000 shares of CSRA stock in a transaction that occurred on Wednesday, May 31st. The shares were sold at an average price of $30.08, for a total value of $601,600.00. Following the sale, the chief financial officer now owns 8,202 shares in the company, valued at $246,716.16. The disclosure for this sale can be found here. 0.40% of the stock is currently owned by company insiders.
Several large investors have recently added to or reduced their stakes in the stock. Ameritas Investment Partners Inc. purchased a new stake in CSRA during the first quarter valued at $102,000. Northwestern Mutual Wealth Management Co. raised its stake in CSRA by 52.2% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 3,698 shares of the technology company’s stock valued at $117,000 after buying an additional 1,269 shares in the last quarter. DekaBank Deutsche Girozentrale purchased a new stake in CSRA during the second quarter valued at $120,000. GLG Partners LP purchased a new stake in CSRA during the second quarter valued at $164,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank raised its stake in CSRA by 11.7% in the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 5,781 shares of the technology company’s stock valued at $184,000 after buying an additional 607 shares in the last quarter. Institutional investors own 93.00% of the company’s stock.
CSRA Company Profile
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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