Zacks Investment Research cut shares of Amdocs Limited (NASDAQ:DOX) from a buy rating to a hold rating in a research report sent to investors on Monday morning.
According to Zacks, “With strategic acquisitions, Amdocs has evolved as a unique vendor providing both end-to-end business and operating support solutions to the carrier marketplace. Solid execution across multiple dimensions of its business and continuous project wins remain positives. Amdocs reported solid fourth-quarter fiscal 2017 results with healthy year-over-year increase in earnings and revenues. The company has also offered a bullish guidance for 2018 based on solid backlog and strong momentum in the North American Pay TV market. However, the company underperformed the industry year to date. Amdocs is highly exposed to foreign currency exchange rate risk. The company 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 remain another significant challenge for the company.”
Other analysts have also recently issued research reports about the stock. Robert W. Baird reiterated a hold rating and issued a $66.00 price objective on shares of Amdocs Limited in a research note on Friday, October 20th. Oppenheimer Holdings, Inc. reiterated a buy rating and issued a $77.00 price objective on shares of Amdocs Limited in a research note on Wednesday, September 27th. Stifel Nicolaus reiterated a buy rating and issued a $72.00 price objective (up previously from $68.00) on shares of Amdocs Limited in a research note on Thursday, August 3rd. BidaskClub upgraded shares of Amdocs Limited from a strong sell rating to a sell rating in a research note on Wednesday, September 27th. Finally, Jefferies Group LLC reiterated a hold rating and issued a $70.00 price objective on shares of Amdocs Limited in a research note on Thursday, October 12th. One research analyst has rated the stock with a sell rating, five have issued a hold rating and two have assigned a buy rating to the company. The company presently has a consensus rating of Hold and an average price target of $70.29.
Shares of Amdocs Limited (NASDAQ DOX) traded up $0.02 during trading hours on Monday, hitting $62.54. 1,109,500 shares of the stock traded hands, compared to its average volume of 681,652. The stock has a market capitalization of $9,180.00, a P/E ratio of 17.66, a price-to-earnings-growth ratio of 2.22 and a beta of 0.53. Amdocs Limited has a 1-year low of $56.10 and a 1-year high of $67.98.
Amdocs Limited (NASDAQ:DOX) last issued its earnings results on Wednesday, November 8th. The technology company reported $0.94 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.89 by $0.05. The business had revenue of $979.70 million for the quarter, compared to the consensus estimate of $977.72 million. Amdocs Limited had a net margin of 11.30% and a return on equity of 14.77%. The business’s quarterly revenue was up 4.2% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.89 earnings per share. analysts predict that Amdocs Limited will post 3.67 earnings per share for the current year.
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The firm also recently announced a quarterly dividend, which will be paid on Friday, January 19th. Shareholders of record on Friday, December 29th will be given a dividend of $0.22 per share. This represents a $0.88 dividend on an annualized basis and a yield of 1.41%. The ex-dividend date is Thursday, December 28th. Amdocs Limited’s payout ratio is currently 29.73%.
Amdocs Limited declared that its Board of Directors has initiated a share repurchase program on Wednesday, November 8th that allows the company to buyback $800.00 million in shares. This buyback authorization allows the technology company to buy shares of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s management believes its stock is undervalued.
Institutional investors and hedge funds have recently made changes to their positions in the business. BB&T Investment Services Inc. acquired a new position in Amdocs Limited during the second quarter worth about $118,000. Acrospire Investment Management LLC purchased a new stake in shares of Amdocs Limited during the second quarter worth about $155,000. Robecosam AG grew its holdings in shares of Amdocs Limited by 37.8% during the second quarter. Robecosam AG now owns 2,550 shares of the technology company’s stock worth $163,000 after buying an additional 700 shares in the last quarter. Atria Investments LLC purchased a new stake in shares of Amdocs Limited during the second quarter worth about $218,000. Finally, HighTower Advisors LLC purchased a new stake in shares of Amdocs Limited during the first quarter worth about $220,000. Institutional investors own 90.88% of the company’s stock.
About Amdocs Limited
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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