Amdocs (DOX) Rating Lowered to Sell at Zacks Investment Research

Amdocs (NASDAQ:DOX) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Monday.

According to Zacks, “Amdocs' Q4 results improved year-over-year. However, exposure to foreign currency exchange rate risk is a major concern. A sequential impact of $5 million in foreign currency movements affected the top-line. Moreover, high concentration risk remains a significant challenge. Decline in spending by Amdocs’ largest client — AT&T— is affecting the company. Continued drag in the directory systems market remains a headwind. This downtrend, which has been persistent for the past couple of years, is expected to continue. Shares have underperformed the industry on a year-to-date basis. However, Amdocs' growing client base and portfolio expansion are positives. Its support for Comcast Business’ commercially available software-defined wide area networking service is likely to drive growth.”

Several other brokerages also recently issued reports on DOX. BidaskClub raised shares of Amdocs from a “hold” rating to a “buy” rating in a research note on Tuesday, October 23rd. TheStreet lowered shares of Amdocs from a “b” rating to a “c+” rating in a research report on Friday, November 9th. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and four have issued a buy rating to the company’s stock. The company currently has a consensus rating of “Hold” and an average target price of $72.60.

Shares of DOX traded up $0.18 on Monday, hitting $65.09. 13,767 shares of the stock traded hands, compared to its average volume of 882,555. The company has a market capitalization of $9.31 billion, a price-to-earnings ratio of 17.40, a PEG ratio of 1.95 and a beta of 0.51. Amdocs has a 1 year low of $60.50 and a 1 year high of $71.72.

Amdocs (NASDAQ:DOX) last announced its quarterly earnings data on Thursday, November 8th. The technology company reported $0.90 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.92 by ($0.02). The firm had revenue of $1 billion for the quarter, compared to analysts’ expectations of $1 billion. Amdocs had a net margin of 8.92% and a return on equity of 15.06%. The business’s quarterly revenue was up 2.3% on a year-over-year basis. During the same period in the previous year, the company posted $0.94 EPS. As a group, equities research analysts expect that Amdocs will post 3.92 earnings per share for the current fiscal year.

A number of hedge funds have recently modified their holdings of DOX. Fort L.P. acquired a new stake in shares of Amdocs in the second quarter worth $118,000. Honkamp Krueger Financial Services Inc. acquired a new stake in shares of Amdocs in the third quarter worth $124,000. Dynamic Technology Lab Private Ltd acquired a new stake in shares of Amdocs in the second quarter worth $205,000. Capital Fund Management S.A. acquired a new stake in shares of Amdocs in the second quarter worth $218,000. Finally, Fuller & Thaler Asset Management Inc. increased its position in shares of Amdocs by 115.8% in the third quarter. Fuller & Thaler Asset Management Inc. now owns 4,100 shares of the technology company’s stock worth $271,000 after acquiring an additional 2,200 shares in the last quarter. 91.15% of the stock is owned by hedge funds and other institutional investors.

About Amdocs

Amdocs Limited, through its subsidiaries, provides software and services solutions to the communications, entertainment, pay TV, and media industry service providers worldwide. The company offers customer experience and monetization solutions that allow its customers to contextual and personalize interactions.

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