Amdocs (NASDAQ:DOX) Hits New 1-Year Low - Here's What Happened

Key Points

• Amdocs shares hit a new 52-week low, trading as low as $40.28 and last quoted at about $40.08, down from the prior close of $41.74.
• Analyst views have softened: the consensus rating is Hold, with three Buy, four Hold, and one Sell rating. The average price target is $78.33.
• The company matched quarterly earnings and revenue estimates, with revenue up 3.8% year over year, and declared a quarterly dividend of $0.569 per share, equivalent to an annualized yield of about 5.5%.

Amdocs Limited (NASDAQ:DOX - Get Free Report)'s stock price reached a new 52-week low during trading on Tuesday. The stock traded as low as $40.28 and last traded at $40.0760, with a volume of 280,944 shares trading hands. The stock had previously closed at $41.74.

Analyst Ratings Changes

Several research analysts have recently issued reports on DOX shares. Weiss Ratings raised Amdocs from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Friday, October 23rd. Wall Street Zen cut Amdocs from a "buy" rating to a "hold" rating in a research note on Saturday. Oppenheimer downgraded Amdocs from an "outperform" rating to a "market perform" rating in a report on Wednesday, November 4th. Finally, Stifel Nicolaus cut their price objective on shares of Amdocs from $71.00 to $46.00 and set a "buy" rating on the stock in a report on Wednesday, November 4th. Three investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $78.33.

Amdocs Stock Performance

The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 0.23. The stock has a fifty day moving average of $59.07 and a 200-day moving average of $61.77. The stock has a market cap of $4.44 billion, a PE ratio of 8.80, a price-to-earnings-growth ratio of 0.70 and a beta of 0.42.

Amdocs (NASDAQ:DOX - Get Free Report) last released its quarterly earnings results on Tuesday, November 3rd. The technology company reported $1.98 EPS for the quarter, hitting the consensus estimate of $1.98. The business had revenue of $1.19 billion during the quarter, compared to analysts' expectations of $1.19 billion. Amdocs had a return on equity of 20.70% and a net margin of 10.59%. The company's quarterly revenue was up 3.8% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.83 earnings per share. On average, equities analysts forecast that Amdocs Limited will post 7.12 EPS for the current year.

Amdocs Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, January 29th. Stockholders of record on Thursday, December 31st will be issued a $0.5690 dividend. This represents a $2.28 annualized dividend and a dividend yield of 5.5%. The ex-dividend date of this dividend is Thursday, December 31st. Amdocs's dividend payout ratio (DPR) is currently 48.82%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Pzena Investment Management LLC boosted its position in shares of Amdocs by 3.4% during the 3rd quarter. Pzena Investment Management LLC now owns 14,454,911 shares of the technology company's stock worth $826,532,000 after purchasing an additional 469,581 shares in the last quarter. Dimensional Fund Advisors LP increased its holdings in shares of Amdocs by 19.7% in the 1st 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 in the last quarter. Bank of America Corp DE increased its holdings in shares of Amdocs by 29.1% in the 1st quarter. Bank of America Corp DE now owns 1,262,263 shares of the technology company's stock valued at $82,375,000 after purchasing an additional 284,435 shares in the last quarter. First Trust Advisors LP lifted its stake in shares of Amdocs by 13.9% in the first quarter. First Trust Advisors LP now owns 1,077,258 shares of the technology company's stock valued at $70,302,000 after purchasing an additional 131,197 shares during the period. Finally, Russell Investments Group Ltd. lifted its stake in shares of Amdocs by 11.2% in the third quarter. Russell Investments Group Ltd. now owns 1,112,976 shares of the technology company's stock valued at $63,703,000 after purchasing an additional 111,800 shares during the period. Institutional investors and hedge funds own 92.02% of the company's stock.

About Amdocs

Amdocs provides software and services to communications and media companies. Its offerings include business and operational support systems for billing, customer management, service delivery and network operations, as well as cloud and digital solutions that help clients modernize their businesses and improve customer experiences. Founded in 1982, Amdocs serves communications and media providers in markets around the world. The company is headquartered in the St. Louis, Missouri, area and is led by President and Chief Executive Officer Shuky Sheffer.

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