Amdocs (NASDAQ:DOX) Shares Gap Up - Still a Buy?

Key Points

• Amdocs shares jumped from a $57.18 close to a $59.70 open, with the stock last trading near $59.80.
• Analyst sentiment remains mixed: three analysts rate the stock Buy, three Hold and one Sell. The consensus rating is Hold, with a price target of $86.67.
• Amdocs met quarterly EPS expectations at $1.84, while revenue rose 2.7% year over year to $1.17 billion. The company also announced a quarterly dividend of $0.569 per share, representing a 3.9% yield.

Amdocs Limited (NASDAQ:DOX - Get Free Report) gapped up prior to trading on Thursday. The stock had previously closed at $57.18, but opened at $59.70. Amdocs shares last traded at $59.8020, with a volume of 93,518 shares traded.

Analyst Upgrades and Downgrades

Several analysts have commented on the company. Weiss Ratings reiterated a "hold (c-)" rating on shares of Amdocs in a research note on Wednesday, August 5th. KeyCorp started coverage on Amdocs in a report on Monday, June 29th. They issued a "sector weight" rating for the company. Finally, Wall Street Zen raised Amdocs from a "hold" rating to a "buy" rating in a report on Saturday, August 29th. Three analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, Amdocs has an average rating of "Hold" and a consensus price target of $86.67.

Amdocs Stock Performance

The company has a market cap of $6.33 billion, a P/E ratio of 13.94, a P/E/G ratio of 1.00 and a beta of 0.42. 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 business has a fifty day simple moving average of $59.05 and a two-hundred day simple moving average of $59.75.

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 (EPS) for the quarter, meeting analysts' consensus estimates of $1.84. Amdocs had a return on equity of 20.28% and a net margin of 9.75%.The business had revenue of $1.17 billion during the quarter, compared to the consensus estimate of $1.18 billion. During the same period in the previous year, the company posted $1.72 EPS. The business's quarterly revenue was up 2.7% compared to the same quarter last year. On average, sell-side analysts anticipate that Amdocs Limited will post 6.56 EPS for the current year.

Amdocs Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Wednesday, September 30th will be given a dividend of $0.5690 per share. This represents a $2.28 annualized dividend and a yield of 3.9%. The ex-dividend date is Wednesday, September 30th. Amdocs's payout ratio is 54.29%.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Pzena Investment Management LLC grew its position in shares of Amdocs by 5.4% during the 1st quarter. Pzena Investment Management LLC now owns 12,681,089 shares of the technology company's stock valued at $827,568,000 after acquiring an additional 644,074 shares during the period. Dimensional Fund Advisors LP lifted 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 in the last quarter. Brandes Investment Partners LP lifted its position in Amdocs by 2.8% during the fourth quarter. Brandes Investment Partners LP now owns 2,714,965 shares of the technology company's stock valued at $218,583,000 after purchasing an additional 74,244 shares in the last quarter. Geode Capital Management LLC grew its holdings in Amdocs by 0.9% during the fourth quarter. Geode Capital Management LLC now owns 1,852,587 shares of the technology company's stock valued at $151,141,000 after purchasing an additional 16,301 shares during the period. Finally, Bank of America Corp DE grew its holdings in Amdocs by 29.1% during the first 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 during the period. 92.02% of the stock is currently owned by institutional investors.

About Amdocs

Amdocs Limited NASDAQ: DOX is a global provider of software and services for communications, media and entertainment companies. Its offerings help service providers manage customer relationships, billing, product catalogs, ordering, network operations and digital experiences across consumer and enterprise markets.

The company provides business support systems and operational support systems, along with cloud-based platforms, artificial intelligence and data solutions, cybersecurity, network services and managed services.

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