Amdocs Limited (DOX) Upgraded to “Buy” by Zacks Investment Research
Zacks Investment Research upgraded shares of Amdocs Limited (NASDAQ:DOX) from a hold rating to a buy rating in a report released on Friday morning. Zacks Investment Research currently has $71.00 target price on the technology company’s stock.
According to Zacks, “Amdocs 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. 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. Solid execution across multiple dimensions of its business and continuous project wins remain positives. Amdocs reported solid fourth-quarter fiscal 2017 results with healthy year-over-year increase in earnings and revenues. The company has offered a bullish guidance for 2018 and expects non-GAAP earnings per share to grow 4% to 8% year over year on revenue growth of 0-4%. However, the company underperformed the industry year to date. Amdocs is highly exposed to foreign currency exchange rate risk.”
Other research analysts have also recently issued reports about the company. Stifel Nicolaus restated a buy rating and issued a $72.00 price objective (up from $68.00) on shares of Amdocs Limited in a research note on Thursday, August 3rd. Oppenheimer Holdings, Inc. restated a buy rating and issued a $70.00 price objective on shares of Amdocs Limited in a research note on Tuesday, September 5th. Jefferies Group LLC reiterated a hold rating and set a $70.00 price target on shares of Amdocs Limited in a research report on Thursday, October 12th. Robert W. Baird reiterated a hold rating and set a $66.00 price target on shares of Amdocs Limited in a research report on Friday, September 1st. Finally, BidaskClub upgraded Amdocs Limited from a sell rating to a hold rating in a research report on Tuesday, August 1st. One 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 an average price target of $70.29.
Shares of Amdocs Limited (NASDAQ:DOX) traded up $0.52 during trading hours on Friday, hitting $62.52. The stock had a trading volume of 2,153,800 shares, compared to its average volume of 679,689. Amdocs Limited has a 1 year low of $56.10 and a 1 year high of $67.98. The stock has a market capitalization of $9,087.60, a PE ratio of 17.66, a price-to-earnings-growth ratio of 2.22 and a beta of 0.53.
Amdocs Limited (NASDAQ:DOX) last announced its quarterly earnings data on Wednesday, November 8th. The technology company reported $0.94 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.89 by $0.05. Amdocs Limited had a return on equity of 14.77% and a net margin of 11.30%. The firm had revenue of $979.70 million during the quarter, compared to analysts’ expectations of $977.72 million. During the same period last year, the business posted $0.89 earnings per share. The company’s revenue for the quarter was up 4.2% compared to the same quarter last year. equities analysts expect that Amdocs Limited will post 3.67 earnings per share for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which will be paid on Friday, January 19th. Stockholders of record on Friday, December 29th will be given a $0.22 dividend. This represents a $0.88 dividend on an annualized basis and a dividend yield of 1.41%. The ex-dividend date of this dividend is Thursday, December 28th. Amdocs Limited’s dividend payout ratio (DPR) is presently 29.73%.
Amdocs Limited announced that its board has approved a share buyback plan on Wednesday, November 8th that allows the company to repurchase $800.00 million in shares. This repurchase authorization allows the technology company to repurchase shares of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s board of directors believes its shares are undervalued.
Several institutional investors have recently bought and sold shares of DOX. Teachers Advisors LLC increased its position in shares of Amdocs Limited by 23.2% in the first quarter. Teachers Advisors LLC now owns 228,708 shares of the technology company’s stock valued at $13,949,000 after buying an additional 43,089 shares in the last quarter. Vanguard Group Inc. increased its position in shares of Amdocs Limited by 15.0% in the first quarter. Vanguard Group Inc. now owns 589,488 shares of the technology company’s stock valued at $35,953,000 after buying an additional 77,102 shares in the last quarter. HighTower Advisors LLC purchased a new stake in shares of Amdocs Limited in the first quarter valued at approximately $220,000. Nomura Asset Management Co. Ltd. increased its position in shares of Amdocs Limited by 313.0% in the first quarter. Nomura Asset Management Co. Ltd. now owns 4,750 shares of the technology company’s stock valued at $290,000 after buying an additional 3,600 shares in the last quarter. Finally, Atria Investments LLC purchased a new stake in shares of Amdocs Limited in the second quarter valued at approximately $218,000. Institutional investors and hedge funds own 90.88% of the company’s stock.
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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