Baird Financial Group Inc. Increases Holdings in Accenture PLC $ACN

Key Points

• Baird Financial Group increased its Accenture holdings by 3.4% in the second quarter, acquiring 7,348 additional shares and bringing its position to 221,596 shares valued at approximately $27.6 million. Institutional investors own 75.14% of the company.
• Accenture reported quarterly EPS of $3.80, beating estimates by $0.10, while revenue rose 5.6% year over year to $18.72 billion. The company also authorized a $2 billion share-repurchase program and pays an annualized dividend of $6.52 per share, yielding 3.7%.
• Analysts maintain a consensus “Hold” rating, with an average price target of $194.19; individual targets range from $140 to $230, reflecting mixed views on Accenture’s growth outlook and recent share-price pressure.

Baird Financial Group Inc. raised its holdings in shares of Accenture PLC (NYSE:ACN - Free Report) by 3.4% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 221,596 shares of the information technology services provider's stock after acquiring an additional 7,348 shares during the period. Baird Financial Group Inc.'s holdings in Accenture were worth $27,575,000 at the end of the most recent reporting period.

Several other large investors have also recently made changes to their positions in the business. McMillan Office Inc. purchased a new stake in shares of Accenture during the fourth quarter valued at approximately $27,000. University of Texas Texas AM Investment Management Co. purchased a new position in shares of Accenture in the fourth quarter worth $27,000. Triumph Capital Management purchased a new position in shares of Accenture in the third quarter worth $26,000. Lloyd Advisory Services LLC. bought a new stake in Accenture during the 4th quarter valued at $35,000. Finally, IMG Wealth Management Inc. boosted its position in Accenture by 134.8% during the 1st quarter. IMG Wealth Management Inc. now owns 155 shares of the information technology services provider's stock valued at $31,000 after buying an additional 89 shares during the period. 75.14% of the stock is owned by hedge funds and other institutional investors.

Accenture Trading Up 1.1%

Accenture stock opened at $177.79 on Friday. Accenture PLC has a 12 month low of $118.15 and a 12 month high of $291.09. The company has a market capitalization of $118.73 billion, a price-to-earnings ratio of 14.20, a price-to-earnings-growth ratio of 1.41 and a beta of 1.10. The business's fifty day simple moving average is $165.95 and its two-hundred day simple moving average is $175.44. 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 (NYSE:ACN - Get Free Report) last released its quarterly earnings data on Friday, June 19th. The information technology services provider reported $3.80 earnings per share for the quarter, beating analysts' consensus estimates of $3.70 by $0.10. The business had revenue of $18.72 billion during the quarter, compared to analyst estimates of $18.78 billion. Accenture had a net margin of 10.66% and a return on equity of 26.47%. Accenture's revenue was up 5.6% compared to the same quarter last year. During the same period last year, the business earned $3.49 EPS. As a group, equities analysts predict that Accenture PLC will post 13.86 earnings per share for the current fiscal year.

Accenture declared that its board has authorized a share repurchase plan on Tuesday, June 23rd that permits the company to buyback $2.00 billion in outstanding shares. This buyback authorization permits the information technology services provider to buy up to 2.4% of its stock through open market purchases. Stock buyback plans are often an indication that the company's board believes its shares are undervalued.

Accenture Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, August 14th. Investors of record on Thursday, July 9th were given a dividend of $1.63 per share. This represents a $6.52 annualized dividend and a yield of 3.7%. The ex-dividend date was Thursday, July 9th. Accenture's payout ratio is 52.08%.

Insider Buying and Selling

In other news, General Counsel Joel Unruch sold 10,498 shares of the business'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 completion of the sale, the general counsel owned 17,735 shares of the company's stock, valued at $2,890,450.30. The trade was a 37.18% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.02% of the company's stock.

Trending Headlines about Accenture

Here are the key news stories impacting Accenture this week:

• Positive Sentiment: Accenture is partnering with Google Cloud to create an enterprise-AI group supported by roughly 1,000 forward-deployed engineers. The team will help clients implement AI agents and could strengthen Accenture’s position in the expanding AI-services market. Accenture and Google are teaming up to send 1,000 engineers into the field to help clients with AI
• Positive Sentiment: MotoGP Group selected Accenture to help develop its next-generation direct-to-fan, internet-delivered streaming platform. The agreement supports Accenture’s media and technology-services pipeline and may produce additional recurring digital-transformation work. MotoGP and Accenture Join Forces to Reinvent the Direct-to-Fan Sports Streaming Experience
• Positive Sentiment: Several analyst-oriented reports recommend retaining ACN, citing rising AI demand, strategic acquisitions, strong free cash flow and low leverage. Accenture generated approximately $12.6 billion in trailing free cash flow, implying an unusually high free-cash-flow yield after the stock’s decline. Here's Why You Should Retain Accenture Stock in Your Portfolio Now
• Neutral Sentiment: One valuation-focused article argues that Accenture’s recent corporate move could materially change the investment math following a roughly 53% decline from its two-year peak. The potential benefit is weighed against questions about the company’s growth outlook. ACN Stock Is Down 53% From Its Peak — But Accenture Just Made a Move That Changes the Math
• Negative Sentiment: Recent trading coverage points to continued share-price pressure, with ACN falling more than the broader market in the referenced session. The main concern is that softer quarterly results and modest revenue growth may indicate that demand is not accelerating quickly enough to offset investor expectations. Accenture Dips More Than Broader Market

Analysts Set New Price Targets

ACN has been the subject of a number of analyst reports. Robert W. Baird set a $190.00 target price on shares of Accenture in a report on Thursday, June 18th. BMO Capital Markets restated a "market perform" rating and set a $150.00 price target on shares of Accenture in a report on Friday, June 19th. Susquehanna dropped their price objective on Accenture from $186.00 to $140.00 and set a "neutral" rating for the company in a report on Monday, June 22nd. The Goldman Sachs Group cut their price objective on Accenture from $270.00 to $230.00 and set a "neutral" rating on the stock in a research report on Thursday, June 18th. Finally, TD Cowen boosted their target price on Accenture from $151.00 to $173.00 and gave the company a "hold" rating in a research note on Wednesday, August 26th. Twelve analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $194.19.

About Accenture

Accenture plc is a global professional services company that helps organizations improve business performance through consulting, technology, and managed services. Its offerings include strategy and consulting, technology implementation, operations support, and business process services.

The company provides digital transformation services involving cloud computing, artificial intelligence, data and analytics, cybersecurity, systems integration, and enterprise software. Through its Song and Industry X businesses, Accenture also supports customer experience, marketing, product engineering, and smart manufacturing initiatives.

Accenture serves clients across a broad range of industries, including financial services, health care, public service, communications, media and technology, consumer goods, retail, resources, and industrial markets.

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