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

Key Points

• Accenture shares gapped down at Thursday’s open, falling from a previous close of $137.19 to an opening price of $130.94 before recovering somewhat intraday.
• Analyst sentiment has turned more cautious, with multiple firms cutting price targets and TD Cowen downgrading the stock to hold; the consensus rating is also Hold with an average price target of $193.33.
• The company reported solid quarterly results, including EPS of $3.80 versus $3.70 expected, and it recently announced a $1.63 quarterly dividend plus a $2 billion share buyback authorization.

Accenture PLC (NYSE:ACN - Get Free Report) shares gapped down before the market opened on Thursday . The stock had previously closed at $137.19, but opened at $130.94. Accenture shares last traded at $135.9120, with a volume of 974,233 shares traded.

Wall Street Analyst Weigh In

A number of equities analysts have commented on the company. Robert W. Baird set a $190.00 target price on Accenture in a research note on Thursday, June 18th. HSBC cut their price target on Accenture from $220.00 to $210.00 and set a "hold" rating on the stock in a report on Tuesday, April 14th. TD Cowen lowered Accenture from a "buy" rating to a "hold" rating and reduced their price objective for the company from $258.00 to $150.00 in a research report on Monday, June 22nd. Guggenheim dropped their target price on Accenture from $225.00 to $185.00 and set a "buy" rating on the stock in a research report on Monday, June 22nd. Finally, Argus cut their target price on Accenture from $335.00 to $220.00 and set a "buy" rating on the stock in a research note on Monday, June 22nd. Twelve equities research analysts have rated the stock with a Buy rating and fifteen have given a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $193.33.

Accenture Stock Performance

The company has a 50 day moving average price of $161.95 and a 200-day moving average price of $205.36. The company has a quick ratio of 1.34, a current ratio of 1.34 and a debt-to-equity ratio of 0.15. The company has a market cap of $92.26 billion, a P/E ratio of 11.02, a PEG ratio of 1.41 and a beta of 1.13.

Accenture (NYSE:ACN - Get Free Report) last posted its quarterly earnings data on Thursday, June 18th. The information technology services provider reported $3.80 earnings per share for the quarter, topping the consensus estimate of $3.70 by $0.10. Accenture had a net margin of 10.66% and a return on equity of 26.47%. The business had revenue of $18.72 billion during the quarter, compared to the consensus estimate of $18.78 billion. During the same quarter in the prior year, the company posted $3.49 earnings per share. The company's quarterly revenue was up 5.6% compared to the same quarter last year. Accenture has set its FY 2026 guidance at 13.780-13.900 EPS. Equities analysts expect that Accenture PLC will post 13.85 EPS for the current fiscal year.

Accenture Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 14th. Stockholders of record on Thursday, July 9th will be issued a $1.63 dividend. The ex-dividend date is Thursday, July 9th. This represents a $6.52 annualized dividend and a dividend yield of 4.7%. Accenture's dividend payout ratio is 52.08%.

Accenture declared that its Board of Directors has authorized a stock buyback plan on Tuesday, June 23rd that permits the company to buyback $2.00 billion in shares. This buyback authorization permits the information technology services provider to reacquire up to 2.4% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's leadership believes its stock is undervalued.

Insiders Place Their Bets

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

Institutional Investors Weigh In On Accenture

Institutional investors and hedge funds have recently modified their holdings of the stock. Triumph Capital Management purchased a new stake in shares of Accenture during the third quarter valued at $26,000. Board of the Pension Protection Fund acquired a new position in shares of Accenture in the fourth quarter worth about $27,000. Laurel Wealth Advisors LLC acquired a new stake in shares of Accenture during the fourth quarter valued at approximately $27,000. Dogwood Wealth Management LLC lifted its position in shares of Accenture by 147.1% in the 2nd quarter. Dogwood Wealth Management LLC now owns 215 shares of the information technology services provider's stock valued at $27,000 after acquiring an additional 128 shares in the last quarter. Finally, McMillan Office Inc. purchased a new position in Accenture during the 4th quarter worth approximately $27,000. Institutional investors and hedge funds own 75.14% of the company's stock.

Accenture Company Profile

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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