Accenture (NYSE:ACN) Stock Price Expected to Rise, TD Cowen Analyst Says

Key Points

• TD Cowen raised Accenture’s price target from $151 to $173 but maintained a “hold” rating, implying 6.41% downside from the stock’s $184.84 opening price.
• Analyst sentiment remains mixed, with a consensus “hold” rating from 27 analysts and an average price target of $194.19.
• Accenture beat quarterly EPS expectations ($3.80 versus $3.70) while reporting $18.72 billion in revenue, and authorized a $2 billion stock buyback covering up to 2.4% of outstanding shares.

Accenture (NYSE:ACN - Get Free Report) had its target price hoisted by equities research analysts at TD Cowen from $151.00 to $173.00 in a research report issued on Wednesday,Benzinga reports. The firm currently has a "hold" rating on the information technology services provider's stock. TD Cowen's price objective suggests a potential downside of 6.41% from the stock's current price.

Other research analysts also recently issued research reports about the company. Royal Bank Of Canada cut their target price on Accenture from $253.00 to $175.00 and set an "outperform" rating for the company in a research note on Monday, June 22nd. Citigroup raised their price objective on shares of Accenture from $135.00 to $190.00 and gave the company a "neutral" rating in a research report on Monday. DA Davidson decreased their target price on shares of Accenture from $275.00 to $175.00 and set a "buy" rating on the stock in a report on Tuesday, June 23rd. William Blair cut shares of Accenture from an "outperform" rating to a "market perform" rating in a research note on Thursday, June 18th. Finally, Wolfe Research lifted their target price on shares of Accenture from $165.00 to $215.00 and gave the company an "outperform" rating in a research report on Tuesday. Twelve analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $194.19.

Accenture Price Performance

Shares of NYSE ACN opened at $184.84 on Wednesday. The firm has a market cap of $123.44 billion, a price-to-earnings ratio of 14.74, a price-to-earnings-growth ratio of 1.93 and a beta of 1.09. The stock has a fifty day simple moving average of $152.74 and a two-hundred day simple moving average of $178.98. The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 0.15. Accenture has a 1-year low of $118.15 and a 1-year high of $291.09.

Accenture (NYSE:ACN - Get Free Report) last issued its quarterly earnings results on Friday, June 19th. The information technology services provider reported $3.80 EPS for the quarter, beating analysts' consensus estimates of $3.70 by $0.10. The firm had revenue of $18.72 billion for the quarter, compared to analysts' expectations of $18.78 billion. Accenture had a return on equity of 26.47% and a net margin of 10.66%.The business's revenue for the quarter was up 5.6% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $3.49 EPS. Analysts anticipate that Accenture will post 13.85 earnings per share for the current year.

Accenture declared that its board has authorized a stock buyback program on Tuesday, June 23rd that allows the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization allows the information technology services provider to purchase up to 2.4% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company's management believes its shares are undervalued.

Insider Transactions at Accenture

In other news, General Counsel Joel Unruch sold 10,498 shares of the firm's stock in a transaction on Thursday, July 30th. The shares were sold at an average price of $162.98, for a total transaction of $1,710,964.04. Following the sale, the general counsel directly owned 17,735 shares in the company, valued at $2,890,450.30. This trade represents a 37.18% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.02% of the company's stock.

Institutional Investors Weigh In On Accenture

Several large investors have recently added to or reduced their stakes in ACN. Laurel Wealth Advisors LLC bought a new stake in shares of Accenture in the fourth quarter valued at about $27,000. McMillan Office Inc. acquired a new stake in Accenture in the fourth quarter valued at approximately $27,000. University of Texas Texas AM Investment Management Co. purchased a new stake in Accenture in the fourth quarter valued at about $27,000. Triumph Capital Management purchased a new stake in shares of Accenture during the third quarter worth about $26,000. Finally, Lloyd Advisory Services LLC. acquired a new position in shares of Accenture during the fourth quarter valued at about $35,000. 75.14% of the stock is owned by institutional investors.

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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