Oppenheimer Maintains a Hold Rating on CA Inc

By Austin Angelo

In a report released today, Shaul Eyal from Oppenheimer maintained a Hold rating on CA Inc (NASDAQ: CA). The company’s shares closed yesterday at $37.21, close to its 52-week high of $37.35.

Eyal commented:

“the market close, semiconductor maker Broadcom and CA announced that Broadcom intends to acquire CA for $44.50/share in cash, representing ~16x our 4.4x our FY19E revenue. The stock is up $5.89, ~16%, in the aftermarket. Broadcom intends to fund the transaction with cash on hand and $18B in new, fully committed debt financing. The transaction, which is subject to customary closing conditions, including the approval of CA shareholders and regulatory approvals in multiple jurisdictions, is expected to close by the end of the year. We view this as a positive development for CA shareholders and maintain our Perform rating.”

According to TipRanks.com, Eyal is a top 100 analyst with an average return of 15.3% and a 67.9% success rate. Eyal covers the Technology sector, focusing on stocks such as Nuance Communications, Verint Systems Inc, and Varonis Systems.

The word on The Street in general, suggests a Hold analyst consensus rating for CA Inc with a $35.67 average price target.

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Based on CA Inc’s latest earnings release for the quarter ending March 31, the company reported a quarterly revenue of $1.08 billion and net profit of $206 million. In comparison, last year the company earned revenue of $1.03 billion and had a net profit of $176 million.

Based on the recent corporate insider activity of 46 insiders, corporate insider sentiment is negative on the stock.

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CA, Inc. engages in the provision of information technology management software and solutions. It operates through the following segments: Enterprise Solutions, Mainframe Solutions and Services. The Enterprise Solutions segment includes products that are designed for distributed and cloud computing environments and run on industry standard servers.