Zacks Investment Research downgraded shares of Amdocs (NASDAQ:DOX) from a hold rating to a sell rating in a research report report published 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.”
Several other brokerages have also weighed in on DOX. Robert W. Baird reaffirmed a hold rating and issued a $66.00 target price on shares of Amdocs in a research report on Friday, October 20th. Jefferies Group reaffirmed a hold rating and issued a $70.00 target price on shares of Amdocs in a research report on Thursday, October 12th. BidaskClub lowered Amdocs from a sell rating to a strong sell rating in a report on Tuesday, December 5th. Finally, Oppenheimer reissued a buy rating and set a $77.00 price objective on shares of Amdocs in a report on Thursday, December 14th. One analyst has rated the stock with a sell rating, five have given a hold rating and two have assigned a buy rating to the stock. The company presently has a consensus rating of Hold and a consensus target price of $70.29.
Amdocs (NASDAQ:DOX) last announced its quarterly earnings data on Wednesday, November 8th. The technology company reported $0.94 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.89 by $0.05. Amdocs had a return on equity of 14.77% and a net margin of 11.30%. The firm had revenue of $979.70 million during the quarter, compared to the consensus estimate of $977.72 million. During the same period in the prior year, the business earned $0.89 EPS. The business’s revenue for the quarter was up 4.2% on a year-over-year basis. sell-side analysts predict that Amdocs will post 3.72 earnings per share for the current year.
Amdocs announced that its Board of Directors has approved a share buyback program on Wednesday, November 8th that permits the company to repurchase $800.00 million in shares. This repurchase authorization permits the technology company to buy shares of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s management believes its shares are undervalued.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, January 19th. Shareholders of record on Friday, December 29th will be given a $0.22 dividend. The ex-dividend date of this dividend 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%.
Several hedge funds have recently made changes to their positions in the business. GSA Capital Partners LLP lifted its position 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 worth $1,628,000 after buying an additional 9,018 shares during the period. Neuberger Berman Group LLC lifted its position 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 worth $57,877,000 after buying an additional 7,737 shares during the period. California Public Employees Retirement System lifted its position 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 worth $21,985,000 after buying an additional 13,702 shares during the period. Janney Montgomery Scott LLC lifted its position 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 worth $1,447,000 after buying an additional 835 shares during the period. Finally, Cubist Systematic Strategies LLC lifted its position 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 worth $2,932,000 after buying an additional 8,678 shares during the period. Institutional investors own 92.05% of the company’s stock.
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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