Davis Rea LTD. Purchases 4,940 Shares of Accenture PLC $ACN

Key Points

• Davis Rea LTD. increased its Accenture stake by 22.3%, purchasing 4,940 additional shares to own 27,092 shares worth approximately $4.97 million. Institutional investors and hedge funds collectively own 75.14% of Accenture.
• Analysts maintain a generally cautious outlook, with an average “Hold” rating and a consensus price target of $219.15; ratings include 11 Buys, 14 Holds and 2 Sells.
• Accenture exceeded quarterly earnings and revenue expectations, raised its quarterly dividend to $1.71, and has authorization for a $2 billion share-buyback program. Shares recently traded near $213, while insiders sold shares under pre-arranged trading plans.

Davis Rea LTD. raised its holdings in Accenture PLC (NYSE:ACN - Free Report) by 22.3% during the third quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 27,092 shares of the information technology services provider's stock after purchasing an additional 4,940 shares during the quarter. Accenture accounts for about 1.4% of Davis Rea LTD.'s holdings, making the stock its 22nd biggest position. Davis Rea LTD.'s holdings in Accenture were worth $4,968,000 at the end of the most recent quarter.

Several other hedge funds have also modified their holdings of the business. Dogwood Wealth Management LLC boosted its stake in shares of Accenture by 147.1% in the second quarter. Dogwood Wealth Management LLC now owns 215 shares of the information technology services provider's stock valued at $27,000 after buying an additional 128 shares in the last quarter. IMG Wealth Management Inc. raised its position in Accenture by 134.8% in the first quarter. IMG Wealth Management Inc. now owns 155 shares of the information technology services provider's stock worth $31,000 after acquiring an additional 89 shares in the last quarter. Arlington Trust Co LLC raised its position in Accenture by 110.4% in the second quarter. Arlington Trust Co LLC now owns 284 shares of the information technology services provider's stock worth $35,000 after acquiring an additional 149 shares in the last quarter. S&G Foundation acquired a new stake in Accenture in the second quarter valued at $37,000. Finally, Whipplewood Advisors LLC lifted its holdings in Accenture by 57.9% in the first quarter. Whipplewood Advisors LLC now owns 210 shares of the information technology services provider's stock valued at $42,000 after acquiring an additional 77 shares during the period. 75.14% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on the stock. Guggenheim reaffirmed a "neutral" rating on shares of Accenture in a research note on Friday, October 2nd. Wells Fargo & Company reiterated a "reduce" rating on shares of Accenture in a report on Friday, October 2nd. Jefferies Financial Group set a $220.00 price objective on shares of Accenture in a research note on Friday, October 2nd. Robert W. Baird set a $245.00 price objective on shares of Accenture in a report on Thursday, October 1st. Finally, Weiss Ratings restated a "sell (d+)" rating on shares of Accenture in a report on Tuesday, October 6th. Eleven research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, Accenture has an average rating of "Hold" and an average target price of $219.15.

Accenture Trading Down 0.7%

Shares of ACN stock traded down $1.56 on Tuesday, reaching $213.31. 6,309,064 shares of the stock were exchanged, compared to its average volume of 6,998,098. The firm has a 50 day moving average of $186.35 and a two-hundred day moving average of $173.80. Accenture PLC has a 1-year low of $118.15 and a 1-year high of $291.09. The company has a quick ratio of 1.34, a current ratio of 1.43 and a debt-to-equity ratio of 0.31. The stock has a market cap of $142.45 billion, a P/E ratio of 15.73, a price-to-earnings-growth ratio of 1.72 and a beta of 1.11.

Accenture (NYSE:ACN - Get Free Report) last posted its earnings results on Thursday, October 1st. The information technology services provider reported $3.29 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.18 by $0.11. Accenture had a net margin of 11.28% and a return on equity of 26.53%. The firm had revenue of $18.68 billion during the quarter, compared to the consensus estimate of $18.03 billion. During the same quarter in the prior year, the company earned $3.03 EPS. The company's revenue was up 6.2% on a year-over-year basis. Accenture has set its FY 2027 guidance at 14.390-14.810 EPS. On average, research analysts anticipate that Accenture PLC will post 14.68 EPS for the current year.

Accenture Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Stockholders of record on Tuesday, October 13th will be given a $1.71 dividend. The ex-dividend date of this dividend is Tuesday, October 13th. This is a positive change from Accenture's previous quarterly dividend of $1.63. This represents a $6.84 annualized dividend and a dividend yield of 3.2%. Accenture's dividend payout ratio (DPR) is currently 48.08%.

Accenture declared that its Board of Directors has initiated a share buyback plan on Tuesday, June 23rd that allows the company to buy back $2.00 billion in shares. This repurchase authorization allows the information technology services provider to reacquire up to 2.4% of its stock through open market purchases. Share repurchase plans are typically an indication that the company's board of directors believes its stock is undervalued.

Accenture News Roundup

Here are the key news stories impacting Accenture this week:

• Positive Sentiment: Accenture acquired Sagacity Solutions, a UK customer-intelligence company, to expand AI-driven customer services across Accenture Song’s UK and Ireland operations. The deal could strengthen the company’s AI capabilities and support cross-selling opportunities. Accenture Acquires Sagacity Solutions
• Positive Sentiment: Analysts and research commentary point to AI momentum, strategic acquisitions, strong cash flow and a relatively discounted valuation as reasons to remain constructive on ACN. Accenture is targeting at least $11 billion in free cash flow and more than $9.5 billion for dividends and share repurchases in fiscal 2027. Accenture Valuation and Market Sentiment
• Positive Sentiment: Unusually heavy call-option activity indicates increased speculative bullish interest, with approximately 58,099 calls purchased versus typical volume of about 16,712 contracts.
• Neutral Sentiment: Accenture’s shares have surged roughly 60% over three months following earnings and guidance updates, prompting investors to reassess whether the rally already reflects much of the AI opportunity. Accenture Stock Rally Analysis
• Neutral Sentiment: Investors are watching upcoming company-related events and analyst commentary for evidence that AI demand is translating into faster revenue growth.
• Negative Sentiment: Concerns remain about cautious client spending, pricing pressure and fiscal 2027 revenue growth of approximately 3% to 6%. These issues could limit earnings acceleration despite AI demand.
• Negative Sentiment: Chief Operating Officer John Walsh reportedly sold approximately $264,000 of ACN stock, a modest insider transaction but a potential short-term sentiment headwind. Accenture Insider Sale

Insider Transactions at Accenture

In other news, COO Catherine Hogan sold 700 shares of the business's stock in a transaction on Monday, October 12th. The shares were sold at an average price of $214.24, for a total transaction of $149,968.00. Following the transaction, the chief operating officer directly owned 11,856 shares of the company's stock, valued at approximately $2,540,029.44. The trade was a 5.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Joel Unruch sold 10,498 shares of Accenture stock in a transaction dated Thursday, July 30th. The stock was sold at an average price of $162.98, for a total value of $1,710,964.04. Following the sale, the general counsel directly owned 17,735 shares in the company, valued at approximately $2,890,450.30. The trade was a 37.18% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 12,518 shares of company stock valued at $2,124,932. Insiders own 0.02% of the company's stock.

Accenture Company Profile

Accenture plc NYSE: ACN is a global professional services company that helps organizations improve performance, modernize operations and respond to technological and market changes. Its services span strategy and consulting, technology, operations, and managed services, with expertise across industries including communications, financial services, health care, public service, retail, manufacturing and resources.

The company provides digital transformation, cloud migration, data and artificial intelligence, cybersecurity, systems integration and technology implementation services.

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