Amdocs Sees Unusually High Options Volume (DOX)

Amdocs Limited (NASDAQ:DOX) was the target of some unusual options trading on Wednesday. Traders bought 693 call options on the company. This is an increase of approximately 1,138% compared to the typical volume of 56 call options.

A number of institutional investors have recently added to or reduced their stakes in the business. BB&T Investment Services Inc. bought a new stake in shares of Amdocs during the second quarter worth about $118,000. Robecosam AG grew its holdings in shares of Amdocs by 37.8% during the second quarter. Robecosam AG now owns 2,550 shares of the technology company’s stock worth $163,000 after purchasing an additional 700 shares during the last quarter. CIBC World Markets Inc. bought a new stake in shares of Amdocs during the second quarter worth about $222,000. Prudential Financial Inc. bought a new stake in shares of Amdocs during the second quarter worth about $230,000. Finally, Edmond DE Rothschild Holding S.A. grew its holdings in shares of Amdocs by 642.9% during the second quarter. Edmond DE Rothschild Holding S.A. now owns 4,160 shares of the technology company’s stock worth $268,000 after purchasing an additional 3,600 shares during the last quarter. Hedge funds and other institutional investors own 92.05% of the company’s stock.

Amdocs (DOX) opened at $69.61 on Friday. Amdocs has a 12-month low of $56.10 and a 12-month high of $69.61. The stock has a market capitalization of $10,020.00, a PE ratio of 23.52, a price-to-earnings-growth ratio of 2.36 and a beta of 0.53.

Amdocs (NASDAQ:DOX) last released its earnings results on Wednesday, November 8th. The technology company reported $0.94 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.89 by $0.05. Amdocs had a return on equity of 14.77% and a net margin of 11.30%. The firm had revenue of $979.70 million for the quarter, compared to analysts’ expectations of $977.72 million. During the same quarter in the previous year, the business posted $0.89 earnings per share. The business’s revenue for the quarter was up 4.2% on a year-over-year basis. equities analysts expect that Amdocs will post 3.72 earnings per share for the current fiscal year.

Amdocs declared that its board has initiated a share buyback plan on Wednesday, November 8th that allows the company to repurchase $800.00 million in outstanding shares. This repurchase authorization allows the technology company to reacquire shares of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s leadership believes its stock is undervalued.

The firm also recently announced a quarterly dividend, which was paid on Friday, January 19th. Shareholders of record on Friday, December 29th were given a $0.22 dividend. This represents a $0.88 dividend on an annualized basis and a yield of 1.26%. The ex-dividend date of this dividend was Thursday, December 28th. Amdocs’s dividend payout ratio is presently 29.73%.

A number of research firms recently commented on DOX. BidaskClub raised Amdocs from a “strong sell” rating to a “sell” rating in a research note on Thursday. Zacks Investment Research downgraded Amdocs from a “hold” rating to a “sell” rating in a research note on Tuesday, January 9th. Oppenheimer reaffirmed a “buy” rating and issued a $77.00 price target on shares of Amdocs in a research note on Wednesday, September 27th. Robert W. Baird reaffirmed a “hold” rating and issued a $66.00 price target on shares of Amdocs in a research note on Friday, October 20th. Finally, Jefferies Group reaffirmed a “hold” rating and issued a $70.00 price target on shares of Amdocs in a research note on Thursday, October 12th. One investment analyst has rated the stock with a sell rating, five have given a hold rating and two have assigned a buy rating to the company. The company currently has an average rating of “Hold” and a consensus price target of $70.29.

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About Amdocs

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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