Amdocs (NASDAQ:DOX) Downgraded by Zacks Research to Strong Sell

Zacks Research cut shares of Amdocs (NASDAQ:DOX) from a hold rating to a strong sell rating in a report issued on Monday,Zacks reports.

A number of other research analysts also recently issued reports on the company. Weiss Ratings upgraded Amdocs from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Friday, October 23rd. Stifel Nicolaus cut their price target on Amdocs from $71.00 to $46.00 and set a “buy” rating on the stock in a research report on Wednesday, November 4th. Wall Street Zen cut Amdocs from a “buy” rating to a “hold” rating in a research note on Saturday. Finally, Oppenheimer downgraded Amdocs from an “outperform” rating to a “market perform” rating in a report on Wednesday, November 4th. Three research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, Amdocs has a consensus rating of “Hold” and an average target price of $78.33.

Amdocs Stock Performance

NASDAQ DOX opened at $41.46 on Monday. The company has a fifty day moving average of $58.64 and a two-hundred day moving average of $61.57. The company has a market capitalization of $4.48 billion, a PE ratio of 8.88, a P/E/G ratio of 1.36 and a beta of 0.42. Amdocs has a 1 year low of $39.96 and a 1 year high of $85.63. The company has a debt-to-equity ratio of 0.23, a current ratio of 0.94 and a quick ratio of 0.94.

Amdocs (NASDAQ:DOX) last posted its earnings results on Tuesday, November 3rd. The technology company reported $1.98 EPS for the quarter, hitting analysts’ consensus estimates of $1.98. Amdocs had a return on equity of 20.81% and a net margin of 10.59%. The business had revenue of $1.19 billion for the quarter, compared to analysts’ expectations of $1.19 billion. During the same quarter in the previous year, the firm earned $1.83 earnings per share. The business’s revenue was up 3.8% compared to the same quarter last year. As a group, analysts expect that Amdocs will post 5.82 earnings per share for the current year.

Amdocs Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, January 29th. Shareholders of record on Thursday, December 31st will be given a dividend of $0.5690 per share. This represents a $2.28 annualized dividend and a yield of 5.5%. The ex-dividend date of this dividend is Thursday, December 31st. Amdocs’s dividend payout ratio (DPR) is presently 48.82%.

Institutional Investors Weigh In On Amdocs

A number of institutional investors and hedge funds have recently made changes to their positions in DOX. Pzena Investment Management LLC boosted its stake in shares of Amdocs by 3.4% during the third quarter. Pzena Investment Management LLC now owns 14,454,911 shares of the technology company’s stock worth $826,532,000 after buying an additional 469,581 shares during the period. Dimensional Fund Advisors LP grew its holdings in shares of Amdocs by 19.7% during the first quarter. Dimensional Fund Advisors LP now owns 3,463,797 shares of the technology company’s stock worth $226,045,000 after buying an additional 571,036 shares during the last quarter. Bank of America Corp DE grew its holdings in shares of Amdocs by 29.1% during the first quarter. Bank of America Corp DE now owns 1,262,263 shares of the technology company’s stock worth $82,375,000 after buying an additional 284,435 shares during the last quarter. Russell Investments Group Ltd. grew its holdings in shares of Amdocs by 11.2% during the third quarter. Russell Investments Group Ltd. now owns 1,112,976 shares of the technology company’s stock worth $63,703,000 after buying an additional 111,800 shares during the last quarter. Finally, First Trust Advisors LP increased its position in Amdocs by 13.9% in the 1st quarter. First Trust Advisors LP now owns 1,077,258 shares of the technology company’s stock valued at $70,302,000 after acquiring an additional 131,197 shares during the period. 92.02% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Amdocs

Here are the key news stories impacting Amdocs this week:

• Positive Sentiment: Amdocs said it was named a Leader in Gartner’s 2026 Magic Quadrant for CSP AI-enabled marketing and sales solutions, offering positive recognition of its products and market position. Article: Amdocs Named a Leader in the 2026 Gartner Magic Quadrant
• Neutral Sentiment: Amdocs announced its schedule for a first-quarter fiscal 2027 investor conference; the notice provides an opportunity for updates but does not itself report a change in business outlook. Article: Amdocs Announces First Quarter Fiscal 2027 Investor Conference Schedule
• Neutral Sentiment: A Seeking Alpha analysis describes the steep decline as a potential speculative value opportunity, but that is an investor opinion rather than a company update. Article: Amdocs: 30% Collapse Creates A Speculative Value Opportunity
• Negative Sentiment: The central concern remains Amdocs’ fiscal 2027 guidance, which reportedly forecast a 7%–11% revenue decline amid an escalating dispute involving its T-Mobile agreement. That outlook was cited as the catalyst for the roughly 30% share-price drop on November 4. Article: Levi & Korsinsky Notifies Investors of Pending Investigation
• Negative Sentiment: Several law firms have announced investigations into potential securities-law violations related to the T-Mobile issues and investors’ losses. These are allegations, not findings of wrongdoing, but the repeated notices may weigh on sentiment and highlight legal uncertainty. Article: DOX Investor Notification Article: Pomerantz Law Firm Investigates Claims Article: Block & Leviton Investigation
• Negative Sentiment: Zacks added DOX to its Rank #5 (Strong Sell) list, reinforcing a bearish assessment of the stock. Article: New Strong Sell Stocks for November 10th

About Amdocs

Amdocs provides software and services to communications and media companies. Its offerings include business and operational support systems for billing, customer management, service delivery and network operations, as well as cloud and digital solutions that help clients modernize their businesses and improve customer experiences. Founded in 1982, Amdocs serves communications and media providers in markets around the world. The company is headquartered in the St. Louis, Missouri, area and is led by President and Chief Executive Officer Shuky Sheffer.