Zacks Investment Research Lowers CSRA Inc. (CSRA) to Hold

Zacks Investment Research cut shares of CSRA Inc. (NYSE:CSRA) from a buy rating to a hold rating in a research note released on Friday.

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, the most recent one being a $115 million contract from the U.S. Environmental Protection Agency (EPA). 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.”

CSRA has been the subject of a number of other research reports. Royal Bank Of Canada reaffirmed a buy rating on shares of CSRA in a report on Tuesday, August 15th. SunTrust Banks, Inc. upgraded CSRA from a hold rating to a buy rating and upped their price target for the company from $34.00 to $39.00 in a research report on Friday. Finally, Cowen and Company reiterated a market perform rating and issued a $35.00 price target (up previously from $32.00) on shares of CSRA in a research report on Thursday, August 10th. Three research analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. The company has an average rating of Buy and an average price target of $36.00.

CSRA (NYSE:CSRA) opened at 31.98 on Friday. The company has a 50-day moving average price of $32.07 and a 200 day moving average price of $30.71. CSRA has a 12-month low of $24.48 and a 12-month high of $33.67. The company has a market cap of $5.23 billion, a PE ratio of 16.66 and a beta of 1.95.

CSRA (NYSE:CSRA) last issued its earnings results on Wednesday, August 9th. The technology company reported $0.48 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.45 by $0.03. CSRA had a return on equity of 101.22% and a net margin of 6.36%. The business had revenue of $1.23 billion during the quarter, compared to analysts’ expectations of $1.24 billion. During the same quarter in the prior year, the firm earned $0.48 EPS. The business’s revenue for the quarter was down 2.0% compared to the same quarter last year. On average, analysts forecast that CSRA will post $1.96 EPS for the current fiscal year.

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The business also recently declared a quarterly dividend, which will be paid on Tuesday, October 3rd. Shareholders 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 1.25%. CSRA’s dividend payout ratio (DPR) is presently 20.94%.

In related news, EVP John Reing sold 20,298 shares of the company’s stock in a transaction dated Friday, August 18th. The stock was sold at an average price of $31,822.00, for a total transaction of $645,922,956.00. Following the sale, the executive vice president now owns 4,587 shares in the company, valued at approximately $145,967,514. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP George Batsakis sold 28,392 shares of the company’s stock in a transaction dated Wednesday, August 23rd. The shares were sold at an average price of $31.42, for a total value of $892,076.64. The disclosure for this sale can be found here. Insiders own 0.40% of the company’s stock.

Several institutional investors have recently made changes to their positions in CSRA. Ameritas Investment Partners Inc. bought a new stake in shares of CSRA during the 1st quarter valued at about $102,000. Northwestern Mutual Wealth Management Co. boosted its position in shares of CSRA by 52.2% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 3,698 shares of the technology company’s stock valued at $117,000 after purchasing an additional 1,269 shares in the last quarter. DekaBank Deutsche Girozentrale bought a new stake in shares of CSRA during the 2nd quarter valued at about $120,000. GLG Partners LP bought a new stake in shares of CSRA during the 2nd quarter valued at about $164,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank boosted its position in shares of CSRA by 11.7% during the 2nd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 5,781 shares of the technology company’s stock valued at $184,000 after purchasing an additional 607 shares in the last quarter. Institutional investors own 92.42% of the company’s stock.

About CSRA

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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