Accenture (NYSE:ACN) Hits New 1-Year Low - Here's Why

Key Points

• Accenture shares hit a new 52-week low, trading as low as $173.65 and last at $177.60 on mid-day volume of about 1.2 million shares.
• Several firms lowered price targets in recent weeks (many to the $230–$265 range), but consensus remains a Moderate Buy with an average price target of $274.50 — well above the current price.
• The company beat Q results (EPS $2.93 vs. $2.84; revenue $18.04B, +7.8% YoY) and declared a quarterly dividend of $1.63 ($6.52 annualized, ~3.6% yield).

Accenture PLC (NYSE:ACN - Get Free Report) shares hit a new 52-week low during mid-day trading on Thursday . The company traded as low as $173.65 and last traded at $177.6020, with a volume of 1196633 shares traded. The stock had previously closed at $180.26.

Analyst Upgrades and Downgrades

ACN has been the subject of a number of recent research reports. Truist Financial dropped their target price on Accenture from $317.00 to $260.00 and set a "buy" rating for the company in a report on Tuesday, March 10th. Robert W. Baird dropped their target price on Accenture from $330.00 to $265.00 and set an "outperform" rating for the company in a report on Friday, March 20th. Berenberg Bank initiated coverage on Accenture in a report on Thursday, January 22nd. They issued a "buy" rating and a $313.00 target price for the company. Deutsche Bank Aktiengesellschaft dropped their target price on Accenture from $280.00 to $230.00 and set a "hold" rating for the company in a report on Friday, March 6th. Finally, BMO Capital Markets dropped their target price on Accenture from $300.00 to $230.00 and set a "market perform" rating for the company in a report on Friday, March 20th. Seventeen investment analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company's stock. According to data from MarketBeat, Accenture presently has an average rating of "Moderate Buy" and an average price target of $274.50.

Accenture Stock Performance

The firm has a market capitalization of $119.09 billion, a P/E ratio of 14.66, a price-to-earnings-growth ratio of 1.68 and a beta of 1.24. The stock has a 50-day moving average of $197.17 and a 200 day moving average of $236.29. The company has a debt-to-equity ratio of 0.16, a quick ratio of 1.34 and a current ratio of 1.34.

Accenture (NYSE:ACN - Get Free Report) last released its quarterly earnings results on Friday, March 20th. The information technology services provider reported $2.93 EPS for the quarter, topping analysts' consensus estimates of $2.84 by $0.09. The business had revenue of $18.04 billion for the quarter, compared to analyst estimates of $17.80 billion. Accenture had a return on equity of 26.33% and a net margin of 10.61%.Accenture's revenue for the quarter was up 7.8% on a year-over-year basis. During the same period in the prior year, the company earned $2.82 EPS. On average, research analysts anticipate that Accenture PLC will post 13.87 earnings per share for the current year.

Accenture Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, May 15th. Investors of record on Thursday, April 9th will be given a dividend of $1.63 per share. The ex-dividend date is Thursday, April 9th. This represents a $6.52 dividend on an annualized basis and a yield of 3.6%. Accenture's dividend payout ratio is 53.40%.

Insider Buying and Selling

In other Accenture news, CEO Julie Spellman Sweet sold 6,057 shares of the stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $241.23, for a total value of $1,461,130.11. Following the transaction, the chief executive officer directly owned 15,255 shares in the company, valued at approximately $3,679,963.65. This trade represents a 28.42% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.02% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of ACN. Running Oak Capital LLC lifted its stake in shares of Accenture by 14.3% in the 3rd quarter. Running Oak Capital LLC now owns 57,541 shares of the information technology services provider's stock valued at $14,190,000 after purchasing an additional 7,190 shares during the period. Weitz Investment Management Inc. raised its stake in Accenture by 28.8% during the 3rd quarter. Weitz Investment Management Inc. now owns 160,550 shares of the information technology services provider's stock worth $39,592,000 after buying an additional 35,900 shares during the period. D.A. Davidson & CO. raised its stake in Accenture by 17.4% during the 3rd quarter. D.A. Davidson & CO. now owns 258,599 shares of the information technology services provider's stock worth $63,771,000 after buying an additional 38,325 shares during the period. Teacher Retirement System of Texas raised its stake in Accenture by 27.7% during the 4th quarter. Teacher Retirement System of Texas now owns 282,340 shares of the information technology services provider's stock worth $75,752,000 after buying an additional 61,314 shares during the period. Finally, Public Sector Pension Investment Board raised its stake in Accenture by 180.4% during the 3rd quarter. Public Sector Pension Investment Board now owns 404,680 shares of the information technology services provider's stock worth $99,794,000 after buying an additional 260,357 shares during the period. 75.14% of the stock is currently owned by institutional investors.

About Accenture

Accenture is a global professional services company that provides a broad range of services and solutions in strategy, consulting, digital, technology and operations. The firm works with organizations across industries to design and implement business transformation programs, deploy and manage enterprise technology, optimize operations, and develop customer and digital experiences. Its offerings encompass management and technology consulting, systems integration, application and infrastructure services, cloud migration and managed services, as well as security and analytics capabilities.

The company delivers industry- and function-specific solutions, combining consulting expertise with proprietary tools, platforms and partnerships with major technology vendors.

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