Amdocs (NASDAQ:DOX) Sets New 1-Year Low After Analyst Downgrade

Amdocs Limited (NASDAQ:DOX)’s share price reached a new 52-week low during mid-day trading on Wednesday after Stifel Nicolaus lowered their price target on the stock from $71.00 to $46.00. Stifel Nicolaus currently has a buy rating on the stock. Amdocs traded as low as $39.99 and last traded at $43.0810, with a volume of 288,621 shares trading hands. The stock had previously closed at $62.43.

DOX has been the subject of a number of other research reports. Weiss Ratings raised shares of Amdocs from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Friday, October 23rd. Wall Street Zen raised Amdocs from a “hold” rating to a “buy” rating in a research note on Saturday, August 29th. Finally, Oppenheimer cut Amdocs from an “outperform” rating to a “market perform” rating in a research note on Wednesday. Three research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $78.33.

More Amdocs News

Here are the key news stories impacting Amdocs this week:

• Positive Sentiment: Amdocs announced a quarterly dividend of $0.569 per share, equivalent to $2.28 annually and a yield of about 3.6%. The dividend is payable January 29 to shareholders of record December 31.
• Positive Sentiment: The company agreed to acquire insurance technology firm EIS for $340 million, opening a potential new growth avenue. Amdocs acquires insurance tech firm EIS for $340 million
• Positive Sentiment: Amdocs and AT&T expanded their collaboration on AI-enabled operations modernization, providing a potential business opportunity. AT&T and Amdocs Expand Collaboration
• Neutral Sentiment: Fiscal Q4 adjusted EPS of $1.98 and revenue of $1.19 billion matched consensus; revenue rose 3.8% year over year. Amdocs Meets Q4 Earnings Estimates
• Negative Sentiment: A dispute with T-Mobile has raised concerns about Amdocs’ revenue exposure and outlook. The CEO declined to detail the exposure, while the company’s fiscal 2027 guidance was sharply reduced—key concerns behind the selling pressure. Amdocs CEO Refuses to Detail T-Mobile Revenue Exposure
• Negative Sentiment: Analyst actions added pressure: Oppenheimer downgraded Amdocs to Perform, and Stifel cut its price target from $71 to $46 while maintaining a Buy rating.

Institutional Investors Weigh In On Amdocs

Several institutional investors have recently bought and sold shares of DOX. Dimensional Fund Advisors LP raised its stake in Amdocs by 19.7% in the 1st quarter. Dimensional Fund Advisors LP now owns 3,463,797 shares of the technology company’s stock valued at $226,045,000 after acquiring an additional 571,036 shares during the period. Pzena Investment Management LLC grew its holdings in shares of Amdocs by 3.4% during the 3rd quarter. Pzena Investment Management LLC now owns 14,454,911 shares of the technology company’s stock worth $826,532,000 after purchasing an additional 469,581 shares in the last quarter. Bank of America Corp DE increased its holdings in Amdocs by 29.1% in the 1st quarter. Bank of America Corp DE now owns 1,262,263 shares of the technology company’s stock valued at $82,375,000 after buying an additional 284,435 shares during the period. Renaissance Technologies LLC raised its holdings in shares of Amdocs by 429.6% during the 1st quarter. Renaissance Technologies LLC now owns 291,800 shares of the technology company’s stock worth $19,043,000 after buying an additional 236,700 shares in the last quarter. Finally, Tidal Investments LLC lifted its stake in shares of Amdocs by 152.3% in the 2nd quarter. Tidal Investments LLC now owns 272,345 shares of the technology company’s stock valued at $13,764,000 after acquiring an additional 164,415 shares during the last quarter. Institutional investors own 92.02% of the company’s stock.

Amdocs Stock Performance

The stock has a market capitalization of $4.69 billion, a price-to-earnings ratio of 10.47, a PEG ratio of 1.01 and a beta of 0.42. The company’s 50-day simple moving average is $60.65 and its 200-day simple moving average is $62.58. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 0.23.

Amdocs (NASDAQ:DOX) last released its quarterly earnings results on Wednesday, November 4th. The technology company reported $1.98 earnings per share for the quarter, meeting analysts’ consensus estimates of $1.98. Amdocs had a net margin of 9.75% and a return on equity of 20.28%. The company had revenue of $1.19 billion for the quarter, compared to analyst estimates of $1.19 billion. During the same period last year, the firm earned $1.83 earnings per share. The firm’s revenue was up 3.8% on a year-over-year basis. On average, analysts expect that Amdocs Limited will post 6.57 EPS for the current year.

Amdocs Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, January 29th. Shareholders of record on Thursday, December 31st will be given a dividend of $0.5690 per share. This represents a $2.28 annualized dividend and a yield of 5.2%. The ex-dividend date of this dividend is Thursday, December 31st. Amdocs’s payout ratio is presently 54.29%.

Amdocs Company Profile

Amdocs Ltd. (NASDAQ: DOX) is a global provider of software and technology services for communications, media and entertainment companies. Its solutions help service providers manage customer relationships, billing, subscriptions, product offerings and digital experiences across consumer and enterprise markets.

The company’s portfolio includes business support systems and operational support systems, cloud-based software, artificial intelligence and automation tools, network and service management platforms, and solutions for media distribution and monetization.