Zacks Investment Research downgraded shares of Amdocs (NASDAQ:DOX) from a hold rating to a sell rating in a research note issued to investors on Tuesday morning.
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.”
A number of other equities research analysts also recently issued reports on DOX. Oppenheimer reiterated a buy rating and issued a $77.00 target price on shares of Amdocs in a research report on Wednesday, September 27th. BidaskClub downgraded shares of Amdocs from a sell rating to a strong sell rating in a research report on Tuesday, December 5th. Robert W. Baird reiterated a hold rating and issued a $66.00 target price on shares of Amdocs in a research report on Friday, October 20th. Finally, Jefferies Group reiterated a hold rating and issued a $70.00 target price on shares of Amdocs in a research report on Thursday, October 12th. Two analysts have rated the stock with a sell rating, four have issued a hold rating and two have issued a buy rating to the stock. Amdocs currently has a consensus rating of Hold and a consensus price target of $70.29.
Amdocs (NASDAQ:DOX) last released its earnings results on Wednesday, November 8th. The technology company reported $0.94 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.89 by $0.05. Amdocs had a net margin of 11.30% and a return on equity of 14.77%. The company had revenue of $979.70 million during the quarter, compared to the consensus estimate of $977.72 million. During the same quarter in the prior year, the firm earned $0.89 EPS. The company’s revenue was up 4.2% compared to the same quarter last year. research analysts predict that Amdocs will post 3.72 earnings per share for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Friday, January 19th. Stockholders of record on Friday, December 29th will be issued a dividend of $0.22 per share. The ex-dividend date is Thursday, December 28th. This represents a $0.88 dividend on an annualized basis and a dividend yield of 1.30%. Amdocs’s dividend payout ratio is currently 29.73%.
Amdocs declared that its board has authorized a share repurchase plan 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 plans are often a sign that the company’s management believes its shares are undervalued.
Several institutional investors have recently added to or reduced their stakes in the company. GSA Capital Partners LLP raised its holdings in shares of Amdocs by 55.3% during the 3rd quarter. GSA Capital Partners LLP now owns 25,312 shares of the technology company’s stock valued at $1,628,000 after purchasing an additional 9,018 shares in the last quarter. Neuberger Berman Group LLC raised its holdings in shares of Amdocs by 0.9% during the 3rd quarter. Neuberger Berman Group LLC now owns 899,837 shares of the technology company’s stock valued at $57,877,000 after purchasing an additional 7,737 shares in the last quarter. California Public Employees Retirement System raised its holdings in shares of Amdocs by 4.2% during the 3rd quarter. California Public Employees Retirement System now owns 341,802 shares of the technology company’s stock valued at $21,985,000 after purchasing an additional 13,702 shares in the last quarter. Janney Montgomery Scott LLC raised its holdings in shares of Amdocs by 3.9% during the 3rd quarter. Janney Montgomery Scott LLC now owns 22,490 shares of the technology company’s stock valued at $1,447,000 after purchasing an additional 835 shares in the last quarter. Finally, Cubist Systematic Strategies LLC raised its holdings in shares of Amdocs by 23.5% during the 3rd quarter. Cubist Systematic Strategies LLC now owns 45,579 shares of the technology company’s stock valued at $2,932,000 after purchasing an additional 8,678 shares in the last quarter. Institutional investors and hedge funds own 92.05% of the company’s stock.
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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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