Amdocs Limited (NASDAQ:DOX) Given Consensus Recommendation of "Hold" by Brokerages

Key Points

• Amdocs has a consensus “Hold” rating among seven analysts: three recommend buying, three recommend holding, and one recommends selling. The average 12-month price target is $86.67, compared with the stock’s recent price of $55.02.
• Shares fell 3.2% in recent trading and remain well below their 52-week high of $90.29. The company reported quarterly EPS of $1.78, slightly above estimates, while revenue rose 3.9% year over year to $1.17 billion.
• Amdocs declared a quarterly dividend of $0.569 per share, equivalent to an annualized $2.28 payout and a 4.1% yield. Institutional investors and hedge funds own approximately 92% of the company’s outstanding stock.

Shares of Amdocs Limited (NASDAQ:DOX - Get Free Report) have earned a consensus rating of "Hold" from the seven research firms that are covering the stock, MarketBeat reports. One investment analyst has rated the stock with a sell recommendation, three have assigned a hold recommendation and three have assigned a buy recommendation to the company. The average 1-year target price among analysts that have issued ratings on the stock in the last year is $86.6667.

Several analysts have recently commented on the stock. KeyCorp began coverage on shares of Amdocs in a research report on Monday, June 29th. They set a "sector weight" rating for the company. Cfra cut shares of Amdocs to a "sell" rating in a report on Thursday, May 14th. Stifel Nicolaus dropped their price target on Amdocs from $88.00 to $71.00 and set a "buy" rating on the stock in a research note on Thursday, May 14th. Weiss Ratings reiterated a "hold (c-)" rating on shares of Amdocs in a report on Friday, May 8th. Finally, Wall Street Zen downgraded Amdocs from a "buy" rating to a "hold" rating in a report on Sunday, July 5th.

Amdocs Trading Down 3.2%

DOX traded down $1.80 during trading on Thursday, reaching $55.02. 58,839 shares of the stock traded hands, compared to its average volume of 1,298,593. The company has a quick ratio of 0.98, a current ratio of 0.98 and a debt-to-equity ratio of 0.23. The stock's 50-day moving average is $55.20 and its 200 day moving average is $64.49. Amdocs has a 12 month low of $49.74 and a 12 month high of $90.29. The stock has a market capitalization of $5.94 billion, a PE ratio of 11.00, a P/E/G ratio of 0.95 and a beta of 0.41.

Amdocs (NASDAQ:DOX - Get Free Report) last announced its quarterly earnings data on Thursday, May 14th. The technology company reported $1.78 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.77 by $0.01. Amdocs had a return on equity of 19.77% and a net margin of 11.81%.The company had revenue of $1.17 billion for the quarter, compared to the consensus estimate of $1.17 billion. During the same period in the previous year, the business earned $1.78 EPS. The firm's revenue was up 3.9% compared to the same quarter last year. Equities analysts anticipate that Amdocs will post 6.56 earnings per share for the current year.

Amdocs Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Tuesday, June 30th will be issued a dividend of $0.569 per share. The ex-dividend date is Tuesday, June 30th. This represents a $2.28 annualized dividend and a yield of 4.1%. Amdocs's dividend payout ratio is presently 45.60%.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the business. Wedge Capital Management L L P NC raised its holdings in shares of Amdocs by 39.2% in the 2nd quarter. Wedge Capital Management L L P NC now owns 82,765 shares of the technology company's stock worth $4,183,000 after acquiring an additional 23,315 shares during the last quarter. Wasatch Advisors LP increased its holdings in Amdocs by 20.6% during the 2nd quarter. Wasatch Advisors LP now owns 72,072 shares of the technology company's stock worth $3,643,000 after purchasing an additional 12,315 shares in the last quarter. Fulton Bank N.A. raised its stake in shares of Amdocs by 8.5% in the second quarter. Fulton Bank N.A. now owns 4,667 shares of the technology company's stock worth $236,000 after purchasing an additional 367 shares during the last quarter. Dynamic Advisor Solutions LLC bought a new position in shares of Amdocs in the second quarter valued at approximately $235,000. Finally, Martin Capital Partners LLC purchased a new position in shares of Amdocs during the second quarter valued at approximately $201,000. 92.02% of the stock is currently owned by institutional investors and hedge funds.

Amdocs Company Profile

Amdocs NASDAQ: DOX is a global software and services provider specializing in solutions for communications, media and entertainment companies. The company designs, develops and integrates revenue management, customer experience and digital services platforms that enable service providers to launch and monetize new offerings, streamline operations and enhance subscriber engagement. Amdocs' product suite encompasses billing and order management, customer relationship management, digital commerce and network function virtualization, supported by professional services for implementation, integration and managed operations.

Founded in 1982 and structured as a separate public company in 1998, Amdocs has its corporate headquarters in Chesterfield, Missouri, and maintains major development centers in Ra'anana, Israel.

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