DXC Technology Stock Jumps After Report of Possible Bid from Apollo, Kyndryl
DXC Technology (DXC) shares surged ahead of Tuesday’s opening bell after news broke that Apollo Global (APO) and Kyndryl Holdings are considering a joint bid for the company. The potential bid price is between $22 and $25 per share, representing a 27% premium to Monday’s closing price of $18.45.
Key Takeaways
- DXC shares rose following reports of a possible joint bid from Apollo Global and Kyndryl Holdings.
- The bid price could range between $22 and $25 per share, offering a significant premium to Monday’s closing price.
- Investors should keep an eye on the $22 level as potential overhead resistance on the chart.
Executive Changes, Slower Enterprise Spending
Over the past year, DXC shares have declined by around 30% due to senior executive changes and slower sales growth. The company has been impacted by reduced IT spending from enterprise customers amid economic uncertainties and higher interest rates.
To address these challenges, DXC announced a $250 million restructuring plan aimed at streamlining its legacy business. Despite these efforts, the company reported a 5.7% drop in revenue during its fiscal fourth quarter and anticipates further revenue declines in fiscal 2025.
Monitor This Key Overhead Resistance Level
DXC Technology has been trading within a descending channel pattern since August 2022, with clear support and resistance levels. The stock recently found support near the lower trendline of the channel but remains below key moving averages.
Investors should pay attention to the $22 level, which could act as overhead resistance on the chart. A breakout above this level with strong volume could signal a new uptrend for DXC shares.
As of pre-market trading, DXC shares were up 2.7% at $18.95.
It’s important to note that the information provided in this article is for informational purposes only. Investors should conduct their own research before making any investment decisions.
Disclaimer: The author does not own any securities mentioned in this article.
Original Source: Investopedia
