Amdocs (DOX) Cut to “Hold” at Zacks Investment Research

Zacks Investment Research lowered shares of Amdocs (NASDAQ:DOX) from a buy rating to a hold rating in a research note issued to investors on Wednesday morning.

According to Zacks, “Estimates for Amdocs have remained stable of late. Amdocs has successfully combined its core billing and rating technology with customer relationship management software to emerge as a leader in the market of business support systems. With strategic acquisitions, the company has further evolved as a unique vendor providing both end-to-end business support solutions and operating support solutions to the carrier marketplace. Moreover, solid execution across multiple dimensions of its business and continuous project wins remain positives. Nonetheless, Amdocs saw a sharp decline in revenues from Europe and international markets. Economic and political uncertainty in Europe may further jeopardize the company’s financials, going forward. High concentration risk remains another significant challenge. Notably, the stock has underperformed the industry in a year’s time frame.”

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Other equities research analysts also recently issued research reports about the stock. BidaskClub raised shares of Amdocs from a sell rating to a hold rating in a research report on Wednesday, March 21st. Jefferies Group raised shares of Amdocs from a hold rating to a buy rating and lowered their price objective for the stock from $71.37 to $60.20 in a research report on Monday, March 19th. ValuEngine raised shares of Amdocs from a hold rating to a buy rating in a research report on Thursday, March 1st. Oppenheimer reissued a buy rating and set a $77.00 price objective on shares of Amdocs in a research report on Wednesday, January 31st. Finally, Stifel Nicolaus increased their price objective on shares of Amdocs from $72.00 to $75.00 and gave the stock a buy rating in a research report on Wednesday, January 31st. Five equities research analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. Amdocs presently has a consensus rating of Hold and a consensus price target of $69.74.

DOX opened at $65.59 on Wednesday. The firm has a market capitalization of $9,596.43, a price-to-earnings ratio of 18.13, a PEG ratio of 2.27 and a beta of 0.54. Amdocs has a twelve month low of $60.30 and a twelve month high of $71.72.

Amdocs (NASDAQ:DOX) last posted its earnings results on Tuesday, January 30th. The technology company reported $1.06 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.89 by $0.17. The company had revenue of $977.70 million for the quarter, compared to analyst estimates of $979.13 million. Amdocs had a net margin of 11.72% and a return on equity of 15.13%. The business’s revenue for the quarter was up 2.4% compared to the same quarter last year. During the same period last year, the business posted $0.90 earnings per share. sell-side analysts anticipate that Amdocs will post 3.76 EPS for the current year.

The business also recently disclosed a quarterly dividend, which will be paid on Friday, April 20th. Stockholders of record on Friday, March 30th will be given a dividend of $0.25 per share. This is an increase from Amdocs’s previous quarterly dividend of $0.22. The ex-dividend date is Wednesday, March 28th. This represents a $1.00 annualized dividend and a dividend yield of 1.52%. Amdocs’s dividend payout ratio is currently 28.17%.

Several hedge funds have recently modified their holdings of the company. Dimensional Fund Advisors LP grew its position in Amdocs by 3.4% in the third quarter. Dimensional Fund Advisors LP now owns 1,186,262 shares of the technology company’s stock valued at $76,298,000 after purchasing an additional 38,480 shares in the last quarter. Bank of Montreal Can grew its position in Amdocs by 4.9% in the fourth quarter. Bank of Montreal Can now owns 874,037 shares of the technology company’s stock valued at $57,232,000 after purchasing an additional 40,551 shares in the last quarter. SG Americas Securities LLC bought a new position in Amdocs in the fourth quarter valued at $459,000. Wells Fargo & Company MN grew its position in Amdocs by 3.6% in the fourth quarter. Wells Fargo & Company MN now owns 5,111,588 shares of the technology company’s stock valued at $334,707,000 after purchasing an additional 178,896 shares in the last quarter. Finally, Credit Agricole S A grew its position in Amdocs by 49.5% in the fourth quarter. Credit Agricole S A now owns 77,475 shares of the technology company’s stock valued at $5,073,000 after purchasing an additional 25,664 shares in the last quarter. 93.46% of the stock is owned by institutional investors.

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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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