Amdocs Limited (DOX) Lowered to Sell at Zacks Investment Research
Amdocs Limited (NASDAQ:DOX) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Tuesday.
According to Zacks, “Amdocs is highly exposed to foreign currency exchange rate risk. Economic and political uncertainty in Europe may further jeopardize the company’s financials, going forward. Amdocs is also susceptible to high concentration risks as nearly three-fourth of total revenues comes from the top 10 clients. Loss of any of these customers is likely to result in considerable top-line erosion. Significant consolidation in the U.S. telecom industry remains another headwind, leading to loss of businesses. Amdocs has underperformed the industry year to date. In addition, heavy investments in the emerging markets in order to boost sales are likely to contract margins. However, Amdocs aims to improve its revenues with an innovative product portfolio and has increased its revenue guidance on favorable growth dynamics and strength in the business model.”
A number of other equities research analysts also recently weighed in on DOX. J P Morgan Chase & Co reaffirmed a “neutral” rating and issued a $68.00 target price on shares of Amdocs Limited in a report on Tuesday, May 9th. BidaskClub downgraded Amdocs Limited from a “hold” rating to a “sell” rating in a report on Tuesday, June 13th. Stifel Nicolaus reaffirmed a “buy” rating and issued a $68.00 target price on shares of Amdocs Limited in a report on Wednesday, June 28th. Robert W. Baird raised their target price on Amdocs Limited from $62.00 to $66.00 and gave the company a “neutral” rating in a report on Wednesday, May 10th. Finally, Jefferies Group LLC reaffirmed a “hold” rating and issued a $59.00 target price on shares of Amdocs Limited in a report on Friday, June 16th. Two investment analysts have rated the stock with a sell rating, three have given a hold rating and four have issued a buy rating to the stock. The stock has an average rating of “Hold” and an average price target of $66.50.
Shares of Amdocs Limited (NASDAQ:DOX) traded up 0.53% during mid-day trading on Tuesday, reaching $64.79. The company had a trading volume of 415,315 shares. Amdocs Limited has a 12-month low of $54.91 and a 12-month high of $66.48. The stock has a market capitalization of $9.49 billion, a P/E ratio of 23.48 and a beta of 0.54. The firm’s 50 day moving average is $64.51 and its 200-day moving average is $61.38.
Amdocs Limited (NASDAQ:DOX) last posted its quarterly earnings data on Tuesday, May 9th. The technology company reported $0.88 EPS for the quarter, topping the Zacks’ consensus estimate of $0.87 by $0.01. Amdocs Limited had a return on equity of 14.46% and a net margin of 10.84%. The firm had revenue of $966 million for the quarter, compared to analyst estimates of $960.58 million. During the same quarter last year, the company earned $0.92 EPS. The company’s revenue was up 4.3% on a year-over-year basis. On average, analysts expect that Amdocs Limited will post $3.79 earnings per share for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, July 14th. Investors of record on Friday, June 30th will be issued a dividend of $0.22 per share. This represents a $0.88 annualized dividend and a dividend yield of 1.36%. The ex-dividend date is Wednesday, June 28th. Amdocs Limited’s dividend payout ratio (DPR) is 31.88%.
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Large investors have recently added to or reduced their stakes in the stock. Robecosam AG purchased a new stake in Amdocs Limited during the first quarter valued at $114,000. Creative Planning increased its stake in Amdocs Limited by 62.7% in the first quarter. Creative Planning now owns 2,198 shares of the technology company’s stock valued at $134,000 after buying an additional 847 shares during the period. Northwestern Mutual Wealth Management Co. increased its stake in Amdocs Limited by 30.6% in the first quarter. Northwestern Mutual Wealth Management Co. now owns 2,969 shares of the technology company’s stock valued at $181,000 after buying an additional 696 shares during the period. Atria Investments LLC purchased a new stake in Amdocs Limited during the second quarter valued at $218,000. Finally, HighTower Advisors LLC purchased a new stake in Amdocs Limited during the first quarter valued at $220,000. 91.03% of the stock is currently owned by institutional investors.
About Amdocs Limited
Amdocs Limited is a provider of software and services for communications, entertainment and media industry service providers. The Company develops, implements and manages software and services associated with business support systems (BSS), operational support systems (OSS) and network operations to enable service providers to introduce new products and services, process orders, monetize data, support new business models and enhance their understanding of their customers.
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