Wall Street Zen Upgrades Amdocs (NASDAQ:DOX) to Buy

Key Points

• Wall Street Zen upgraded Amdocs to “buy” from “hold,” though the broader analyst consensus remains “hold,” with three buys, three holds and one sell and an average price target of $86.67.
• Amdocs reported quarterly EPS of $1.84, matching expectations, while revenue rose 2.7% year over year to $1.17 billion, slightly below estimates. The stock recently traded at $62.91, up 0.3%.
• Institutional ownership remains high at 92.02%, with several major investment firms significantly increasing their stakes; however, analysts lowered some near-term EPS forecasts while raising the longer-term FY2028 estimate.

Amdocs (NASDAQ:DOX - Get Free Report) was upgraded by Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued on Saturday.

A number of other equities analysts have also recently issued reports on the company. KeyCorp assumed coverage on Amdocs in a report on Monday, June 29th. They set a "sector weight" rating for the company. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Amdocs in a research report on Wednesday, August 5th. Cfra downgraded Amdocs to a "sell" rating in a report on Thursday, May 14th. Finally, Stifel Nicolaus dropped their target price on Amdocs from $88.00 to $71.00 and set a "buy" rating on the stock in a research report on Thursday, May 14th. Three research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $86.67.

Amdocs Stock Up 0.3%

DOX stock traded up $0.21 during mid-day trading on Friday, hitting $62.91. 1,293,158 shares of the company were exchanged, compared to its average volume of 1,190,782. The company has a debt-to-equity ratio of 0.23, a quick ratio of 0.94 and a current ratio of 0.94. Amdocs has a 1-year low of $49.74 and a 1-year high of $86.14. The firm's 50 day simple moving average is $55.10 and its 200 day simple moving average is $61.22. The firm has a market cap of $6.79 billion, a P/E ratio of 14.98, a P/E/G ratio of 1.09 and a beta of 0.40.

Amdocs (NASDAQ:DOX - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The technology company reported $1.84 earnings per share for the quarter, meeting the consensus estimate of $1.84. Amdocs had a net margin of 9.75% and a return on equity of 20.28%. The company had revenue of $1.17 billion during the quarter, compared to analysts' expectations of $1.18 billion. During the same quarter in the prior year, the company earned $1.72 earnings per share. The business's quarterly revenue was up 2.7% compared to the same quarter last year. On average, sell-side analysts predict that Amdocs will post 6.57 EPS for the current fiscal year.

Institutional Investors Weigh In On Amdocs

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Pzena Investment Management LLC grew its holdings in shares of Amdocs by 82.6% in the 4th quarter. Pzena Investment Management LLC now owns 12,037,015 shares of the technology company's stock valued at $969,100,000 after acquiring an additional 5,443,766 shares in the last quarter. Alyeska Investment Group L.P. raised its holdings in Amdocs by 155.1% during the fourth quarter. Alyeska Investment Group L.P. now owns 2,110,393 shares of the technology company's stock worth $169,908,000 after acquiring an additional 1,283,231 shares in the last quarter. Dimensional Fund Advisors LP boosted its position in Amdocs by 19.7% during the first quarter. Dimensional Fund Advisors LP now owns 3,463,797 shares of the technology company's stock valued at $226,045,000 after purchasing an additional 571,036 shares during the last quarter. Squarepoint Ops LLC boosted its position in Amdocs by 469.4% during the fourth quarter. Squarepoint Ops LLC now owns 543,875 shares of the technology company's stock valued at $43,787,000 after purchasing an additional 448,358 shares during the last quarter. Finally, Voloridge Investment Management LLC grew its stake in Amdocs by 501.1% in the fourth quarter. Voloridge Investment Management LLC now owns 520,494 shares of the technology company's stock valued at $41,905,000 after purchasing an additional 433,907 shares in the last quarter. 92.02% of the stock is owned by institutional investors.

Amdocs News Roundup

Here are the key news stories impacting Amdocs this week:

• Positive Sentiment: Zacks Research raised its FY2028 EPS forecast to $7.79 from $7.69 and increased estimates for several quarters, including Q1 2027, Q2 2027, Q2 2028 and Q3 2028. These revisions suggest improved longer-term earnings potential. Amdocs estimates and analyst coverage
• Positive Sentiment: Analysts have set a consensus price target of $86.67, substantially above the stock’s recent trading level, implying considerable potential upside if Amdocs meets or exceeds earnings expectations. Amdocs receives $86.67 consensus target price
• Positive Sentiment: Zacks highlighted Amdocs as a strong momentum stock, which may support investor interest and buying activity. Why Amdocs is a strong momentum stock
• Neutral Sentiment: A potential catalyst is Amdocs’ telecom partnership with Millicom International Cellular (TIGO); stronger growth at Millicom could increase the opportunity for Amdocs’ services, although the article presents this as a possibility rather than a confirmed financial impact. Millicom growth and Amdocs partnership
• Negative Sentiment: Zacks lowered its FY2026 EPS estimate to $6.57 from $6.60 and cut FY2027 EPS to $6.99 from $7.12. It also reduced Q4 2026 and Q3/Q4 2027 forecasts, signaling some pressure on near-term earnings expectations.

About Amdocs

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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