Softcat (LON:SCT) Stock Falls 4.9% – Should You Sell?

Shares of Softcat plc (LON:SCT) dropped 4.9% during mid-day trading on Wednesday. The company traded as low as GBX 1,708 and last traded at GBX 1,830.41. 970,430 shares changed hands during mid-day trading, a decline of 46% from the average session volume of 1,783,115 shares. The stock had previously closed at GBX 1,924.

Key Stories Impacting Softcat

Here are the key news stories impacting Softcat this week:

• Positive Sentiment: Softcat reported a 19.4% increase in fiscal 2026 profit, while revenue rose 35.4%, demonstrating strong demand for IT products and services. Softcat FY2026 profits rise 19.4% as revenue grows 35.4%
• Positive Sentiment: The company increased its dividend after profit growth exceeded expectations, potentially improving shareholder returns and signaling confidence in cash generation. Softcat lifts dividend as profit growth beats expectations
• Positive Sentiment: Softcat is expanding into the U.S. through a deal with GDT, adding a potential growth platform and broadening its geographic reach. Softcat posts double-digit profit growth and moves into U.S. market with GDT deal
• Neutral Sentiment: Softcat reported quarterly earnings per share of GBX 75.80, with a 45.16% return on equity and an 8.06% net margin, underscoring solid profitability. Softcat earnings report
• Negative Sentiment: Fiscal 2027 growth guidance points to a slowdown, overshadowing the strong fiscal 2026 results and likely driving the market’s negative reaction. Softcat shares fall as outlook points to slower growth
• Negative Sentiment: Jefferies reaffirmed its “hold” rating and set a GBX 1,700 price target, below the recent trading level, suggesting limited near-term upside in the broker’s view. Jefferies rating update

Analyst Ratings Changes

Several research firms have recently issued reports on SCT. Berenberg Bank upped their target price on Softcat from GBX 1,950 to GBX 2,400 and gave the company a “buy” rating in a report on Monday, September 21st. JPMorgan Chase & Co. upped their price objective on Softcat from GBX 1,950 to GBX 2,300 and gave the company an “overweight” rating in a research note on Monday, September 7th. Deutsche Bank Aktiengesellschaft downgraded Softcat to a “hold” rating and upped their price objective for the company from GBX 1,800 to GBX 2,140 in a research note on Wednesday, August 26th. Finally, Jefferies Financial Group reaffirmed a “hold” rating and set a GBX 1,700 target price on shares of Softcat in a research report on Wednesday. Four equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of GBX 1,993.75.

Softcat Trading Down 4.9%

The firm has a 50 day moving average of GBX 1,943.73 and a 200 day moving average of GBX 1,734.73. The firm has a market cap of £3.94 billion, a PE ratio of 26.11, a P/E/G ratio of 11.51 and a beta of 0.58. The company has a quick ratio of 1.38, a current ratio of 1.25 and a debt-to-equity ratio of 13.07.

Softcat (LON:SCT) last released its earnings results on Wednesday, October 14th. The company reported GBX 75.80 earnings per share (EPS) for the quarter. Softcat had a return on equity of 45.16% and a net margin of 8.06%. Equities analysts anticipate that Softcat plc will post 60.72 earnings per share for the current year.

Insider Buying and Selling at Softcat

In other news, insider Graham Charlton acquired 176 shares of the firm’s stock in a transaction that occurred on Monday, September 7th. The stock was bought at an average price of GBX 2,045 per share, with a total value of £3,599.20. Also, insider Kathryn Mecklenburgh acquired 176 shares of the company’s stock in a transaction on Monday, September 7th. The shares were acquired at an average cost of GBX 2,045 per share, for a total transaction of £3,599.20. Insiders have bought a total of 384 shares of company stock valued at $749,739 in the last quarter. 2.91% of the stock is owned by corporate insiders.

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.