Amdocs (NASDAQ:DOX) Downgraded by Zacks Investment Research

Zacks Investment Research downgraded shares of Amdocs (NASDAQ:DOX) from a buy rating to a hold rating in a research note published on Tuesday morning, Zacks.com reports. They currently have $67.00 price target on the technology company’s stock.

According to Zacks, “Amdocs is benefiting from new customer gains, penetration into new regions and several of managed services awards. The company is also gaining from partnerships with key companies. Moreover, it stands to benefit from the impending merger between T-Mobile and Sprint, both of which are Amdocs’ customers. The company continues to aid digital, media and network transformations of its clients, which is improving its revenue growth rate. Its cloud native digital solutions platform DigitalONE is expected to be a key growth driver. However, persistent drag in the directory systems market remains a headwind. High customer concentration is a significant risk to the top line. Moreover, the consolidation trend in the U.S. telecom industry may significantly affect the company going forward. Shares have underperformed the industry year to date.”

Several other equities analysts have also issued reports on the company. JPMorgan Chase & Co. reaffirmed a neutral rating on shares of Anglo American in a research note on Wednesday, May 15th. BidaskClub lowered Xencor from a sell rating to a strong sell rating in a research note on Tuesday, June 11th. TheStreet lowered TIM Participacoes from a b rating to a c+ rating in a research note on Tuesday, June 4th. Finally, ValuEngine raised Vermillion from a hold rating to a buy rating in a research note on Wednesday, May 15th. Six analysts have rated the stock with a hold rating and one has issued a buy rating to the company. The company presently has a consensus rating of Hold and a consensus target price of $71.20.

Amdocs stock traded up $0.16 on Tuesday, reaching $64.01. The company’s stock had a trading volume of 2,939 shares, compared to its average volume of 628,790. The stock has a market capitalization of $8.82 billion, a P/E ratio of 17.11, a price-to-earnings-growth ratio of 1.86 and a beta of 0.42. The company’s fifty day moving average is $61.86. Amdocs has a twelve month low of $52.60 and a twelve month high of $68.99.

Amdocs (NASDAQ:DOX) last posted its quarterly earnings data on Tuesday, May 14th. The technology company reported $1.06 EPS for the quarter, topping analysts’ consensus estimates of $1.03 by $0.03. The company had revenue of $1.02 billion for the quarter, compared to analyst estimates of $1.02 billion. Amdocs had a return on equity of 15.18% and a net margin of 8.96%. The business’s revenue was up 2.8% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.95 earnings per share. As a group, equities research analysts anticipate that Amdocs will post 4.01 earnings per share for the current year.

The company also recently declared a quarterly dividend, which will be paid on Friday, July 19th. Stockholders of record on Friday, June 28th will be paid a dividend of $0.285 per share. This represents a $1.14 annualized dividend and a dividend yield of 1.78%. The ex-dividend date is Thursday, June 27th. Amdocs’s dividend payout ratio (DPR) is presently 30.48%.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in DOX. Alphasimplex Group LLC bought a new stake in shares of Amdocs in the first quarter worth about $1,691,000. Wedge Capital Management L L P NC increased its holdings in shares of Amdocs by 17.6% in the first quarter. Wedge Capital Management L L P NC now owns 11,424 shares of the technology company’s stock worth $618,000 after acquiring an additional 1,707 shares in the last quarter. Brinker Capital Inc. increased its holdings in shares of Amdocs by 7.7% in the fourth quarter. Brinker Capital Inc. now owns 6,358 shares of the technology company’s stock worth $373,000 after acquiring an additional 452 shares in the last quarter. Clal Insurance Enterprises Holdings Ltd increased its holdings in shares of Amdocs by 209.1% in the first quarter. Clal Insurance Enterprises Holdings Ltd now owns 1,090,517 shares of the technology company’s stock worth $59,017,000 after acquiring an additional 737,705 shares in the last quarter. Finally, Connor Clark & Lunn Investment Management Ltd. bought a new position in shares of Amdocs during the first quarter worth about $3,623,000. Institutional investors and hedge funds own 91.58% of the company’s stock.

Amdocs Company Profile

Amdocs Limited, through its subsidiaries, provides software and services to the communications, pay TV, entertainment, and media industry service providers worldwide. The company offers amdocsONE a line of services designed for various stages of a service provider's lifecycle, including planning, delivery, implementation, and ongoing support, as well as consumer experience and monetization, media and digital, enterprise and connected society, service-driven network, and services and agile operation solutions.

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