Zacks Investment Research downgraded shares of Amdocs (NASDAQ:DOX) from a hold rating to a sell rating in a research note released on Tuesday, January 9th.
According to Zacks, “Amdocs has underperformed the industry in the last three months. The company is highly exposed to foreign currency exchange rate risk. Amdocs saw a sharp decline in revenues from Europe and international markets. Economic and political uncertainty in Europe may further jeopardize the company’s financials, going forward. High concentration risk remains another significant challenge. Amdocs is a relatively minor supplier of billing systems for the cable industry. The company’s entry into other business segments, such as financial services outsourcing and non-telecom customer relationship management software, may not be as successful as anticipated. Moreover, the consolidation trend in the U.S. telecom industry may significantly affect the company in future. However, solid execution across multiple dimensions of its business and continuous project wins remain positives.”
DOX has been the topic of a number of other research reports. Oppenheimer reiterated a buy rating and set a $77.00 price target on shares of Amdocs in a report on Thursday, November 9th. BidaskClub cut shares of Amdocs from a sell rating to a strong sell rating in a report on Tuesday, October 31st. Jefferies Group restated a hold rating and issued a $70.00 target price on shares of Amdocs in a report on Thursday, October 12th. Finally, Robert W. Baird restated a hold rating and issued a $66.00 target price on shares of Amdocs in a report on Friday, October 20th. One analyst has rated the stock with a sell rating, five have issued a hold rating and two have assigned a buy rating to the stock. The company presently has a consensus rating of Hold and an average price target of $70.29.
Shares of Amdocs (NASDAQ:DOX) traded up $0.80 during midday trading on Tuesday, hitting $69.61. 353,272 shares of the company’s stock were exchanged, compared to its average volume of 624,417. Amdocs has a fifty-two week low of $56.10 and a fifty-two week high of $69.61. The company has a market capitalization of $10,130.00, a P/E ratio of 23.52, a price-to-earnings-growth ratio of 2.36 and a beta of 0.53.
Amdocs (NASDAQ:DOX) last announced its earnings results on Wednesday, November 8th. The technology company reported $0.94 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.89 by $0.05. Amdocs had a net margin of 11.30% and a return on equity of 14.77%. The business had revenue of $979.70 million during the quarter, compared to the consensus estimate of $977.72 million. During the same quarter last year, the firm earned $0.89 earnings per share. The business’s revenue for the quarter was up 4.2% on a year-over-year basis. equities research analysts anticipate that Amdocs will post 3.72 earnings per share for the current year.
The firm also recently declared a quarterly dividend, which was paid on Friday, January 19th. Stockholders of record on Friday, December 29th were paid a dividend of $0.22 per share. This represents a $0.88 annualized dividend and a dividend yield of 1.26%. The ex-dividend date was Thursday, December 28th. Amdocs’s dividend payout ratio is presently 29.73%.
Amdocs declared that its Board of Directors has authorized a stock buyback program on Wednesday, November 8th that allows the company to buyback $800.00 million in outstanding shares. This buyback authorization allows the technology company to reacquire shares of its stock through open market purchases. Stock buyback programs are often a sign that the company’s board of directors believes its stock is undervalued.
Several institutional investors have recently modified their holdings of DOX. Janus Henderson Group PLC boosted its stake in shares of Amdocs by 105,711.6% during the 2nd quarter. Janus Henderson Group PLC now owns 7,431,146 shares of the technology company’s stock worth $479,012,000 after acquiring an additional 7,424,123 shares during the last quarter. FIL Ltd raised its position in shares of Amdocs by 157.9% during the 2nd quarter. FIL Ltd now owns 4,137,393 shares of the technology company’s stock valued at $266,696,000 after purchasing an additional 2,532,928 shares during the period. FMR LLC raised its position in shares of Amdocs by 13.6% during the 2nd quarter. FMR LLC now owns 14,342,346 shares of the technology company’s stock valued at $924,507,000 after purchasing an additional 1,722,080 shares during the period. Amundi Pioneer Asset Management Inc. bought a new stake in shares of Amdocs during the 3rd quarter valued at $29,105,000. Finally, Acadian Asset Management LLC raised its position in shares of Amdocs by 17.4% during the 4th quarter. Acadian Asset Management LLC now owns 1,780,570 shares of the technology company’s stock valued at $116,592,000 after purchasing an additional 264,046 shares during the period. Institutional investors and hedge funds own 92.05% of the company’s stock.
Amdocs Company Profile
Amdocs Limited is a provider of software and services for communications, entertainment and media industry service providers. The Company develops, implements and manages software and services associated with business support systems (BSS), operational support systems (OSS) and network operations to enable service providers to introduce new products and services, process orders, monetize data, support new business models and enhance their understanding of their customers.
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