Zacks Investment Research Downgrades Amdocs Limited (DOX) to Hold

Zacks Investment Research cut shares of Amdocs Limited (NASDAQ:DOX) from a buy rating to a hold rating in a report published on Tuesday.

According to Zacks, “Amdocs reported healthy third-quarter fiscal 2017 results, surpassing the Zacks Consensus Estimate by 7.9%. The company continues to expand its global client base by signing long-term contracts. Collaborating with a major telecommunication industry player like AT&T on an upcoming technology platform is expected to benefit Amdocs and boost its top line. Solid execution across multiple dimensions of its business and continuous project wins remain positives. However, the company underperformed the industry in the last 90 days. Amdocs is highly exposed to foreign currency exchange rate risk. The company saw a sharp decline in revenues from Europe and international markets. Amdocs is investing heavily in the emerging markets in order to boost sales, which may lead to a drop-in margins. Even in the developed markets, management has decided to undertake a series of programs to cope with recessionary situations.”

A number of other equities research analysts also recently weighed in on the company. 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. 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. BidaskClub downgraded Amdocs Limited from a hold rating to a sell rating in a report on Tuesday, June 13th. 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, 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. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and three have given a buy rating to the company’s stock. Amdocs Limited currently has a consensus rating of Hold and a consensus price target of $67.63.

Shares of Amdocs Limited (NASDAQ:DOX) traded down 0.72% during mid-day trading on Tuesday, reaching $63.64. The company had a trading volume of 806,031 shares. The stock has a market capitalization of $9.29 billion, a P/E ratio of 22.11 and a beta of 0.54. Amdocs Limited has a 12-month low of $54.91 and a 12-month high of $67.98. The firm’s 50 day moving average is $65.38 and its 200-day moving average is $62.73.

Amdocs Limited (NASDAQ:DOX) last issued its earnings results on Wednesday, August 2nd. The technology company reported $1.02 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.96 by $0.06. The firm had revenue of $967 million for the quarter, compared to the consensus estimate of $967.04 million. Amdocs Limited had a return on equity of 14.73% and a net margin of 11.11%. The company’s revenue was up 4.0% compared to the same quarter last year. During the same quarter last year, the business posted $0.90 EPS. On average, analysts expect that Amdocs Limited will post $3.81 earnings per share for the current fiscal year.

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The business also recently announced a quarterly dividend, which will be paid on Friday, October 20th. Investors of record on Friday, September 29th will be given a dividend of $0.22 per share. This represents a $0.88 annualized dividend and a yield of 1.38%. The ex-dividend date of this dividend is Thursday, September 28th. Amdocs Limited’s dividend payout ratio is currently 30.66%.

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Wetherby Asset Management Inc. raised its position in shares of Amdocs Limited by 4.4% in the first quarter. Wetherby Asset Management Inc. now owns 3,812 shares of the technology company’s stock valued at $232,000 after buying an additional 162 shares in the last quarter. Russell Investments Group Ltd. raised its position in shares of Amdocs Limited by 3.3% in the first quarter. Russell Investments Group Ltd. now owns 321,902 shares of the technology company’s stock valued at $19,635,000 after buying an additional 10,381 shares in the last quarter. Janney Montgomery Scott LLC raised its position in shares of Amdocs Limited by 4.2% in the first quarter. Janney Montgomery Scott LLC now owns 23,138 shares of the technology company’s stock valued at $1,411,000 after buying an additional 930 shares in the last quarter. Park Avenue Securities LLC raised its position in shares of Amdocs Limited by 9.4% in the first quarter. Park Avenue Securities LLC now owns 5,615 shares of the technology company’s stock valued at $342,000 after buying an additional 484 shares in the last quarter. Finally, ProShare Advisors LLC bought a new position in shares of Amdocs Limited during the first quarter valued at about $224,000. 89.97% of the stock is owned by institutional investors and hedge funds.

Amdocs Limited Company Profile

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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