Accenture (NYSE:ACN) Shares Down 7.5% - Here's Why

Key Points

• Accenture shares fell 7.5% in midday trading, touching an intraday low of $157.21 after closing at $169.77 the prior day.
• Despite the selloff, the company’s latest earnings beat expectations, with EPS of $2.93 versus the $2.84 consensus and revenue of $18.04 billion topping estimates.
• Analysts remain generally constructive overall, with a Moderate Buy consensus and a price target of $274.50, even though several firms recently trimmed their targets.

Shares of Accenture PLC (NYSE:ACN - Get Free Report) dropped 7.5% during mid-day trading on Wednesday . The company traded as low as $157.21 and last traded at $157.0950. Approximately 5,084,238 shares changed hands during trading, a decline of 18% from the average daily volume of 6,232,170 shares. The stock had previously closed at $169.77.

Analyst Upgrades and Downgrades

ACN has been the topic of a number of recent research reports. Guggenheim dropped their target price on Accenture from $275.00 to $250.00 and set a "buy" rating on the stock in a report on Friday, March 20th. Wells Fargo & Company upped their price objective on shares of Accenture from $251.00 to $275.00 and gave the stock an "equal weight" rating in a research report on Wednesday, January 14th. HSBC cut their target price on Accenture from $220.00 to $210.00 and set a "hold" rating on the stock in a research note on Tuesday, April 14th. Piper Sandler set a $282.00 price target on Accenture in a report on Thursday, March 5th. Finally, Berenberg Bank initiated coverage on Accenture in a research note on Thursday, January 22nd. They issued a "buy" rating and a $313.00 price objective for the company. Seventeen research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $274.50.

Accenture Stock Performance

The company has a debt-to-equity ratio of 0.16, a current ratio of 1.34 and a quick ratio of 1.34. The stock has a market capitalization of $106.26 billion, a P/E ratio of 13.08, a price-to-earnings-growth ratio of 1.64 and a beta of 1.08. The company has a 50 day simple moving average of $193.20 and a 200-day simple moving average of $232.98.

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

Accenture Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, May 15th. Shareholders 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 annualized dividend and a dividend yield of 4.1%. Accenture's dividend payout ratio is currently 53.40%.

Insider Transactions at Accenture

In other Accenture news, CEO Atsushi Egawa sold 4,872 shares of the firm's stock in a transaction dated Thursday, April 30th. The stock was sold at an average price of $177.14, for a total value of $863,026.08. Following the completion of the transaction, the chief executive officer owned 12,802 shares in the company, valued at $2,267,746.28. This trade represents a 27.57% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.02% of the company's stock.

Institutional Investors Weigh In On Accenture

A number of institutional investors and hedge funds have recently modified their holdings of ACN. Brighton Jones LLC increased its holdings in shares of Accenture by 36.2% in the fourth quarter. Brighton Jones LLC now owns 18,438 shares of the information technology services provider's stock worth $6,486,000 after purchasing an additional 4,905 shares during the period. Sivia Capital Partners LLC raised its holdings in shares of Accenture by 46.9% in the 2nd quarter. Sivia Capital Partners LLC now owns 2,066 shares of the information technology services provider's stock valued at $618,000 after acquiring an additional 660 shares in the last quarter. United Bank boosted its position in shares of Accenture by 49.8% during the 2nd quarter. United Bank now owns 3,639 shares of the information technology services provider's stock valued at $1,088,000 after acquiring an additional 1,209 shares during the last quarter. Bank of Nova Scotia increased its position in shares of Accenture by 23.0% in the second quarter. Bank of Nova Scotia now owns 828 shares of the information technology services provider's stock worth $247,000 after purchasing an additional 155 shares during the last quarter. Finally, Main Street Financial Solutions LLC raised its stake in Accenture by 4.2% in the second quarter. Main Street Financial Solutions LLC now owns 1,767 shares of the information technology services provider's stock valued at $528,000 after purchasing an additional 72 shares in the last quarter. 75.14% of the stock is owned by hedge funds and other 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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