Zacks Investment Research upgraded shares of Amdocs (NASDAQ:DOX) from a hold rating to a buy rating in a research note issued to investors on Friday morning, Zacks.com reports. Zacks Investment Research currently has $68.00 price target on the technology company’s stock.
According to Zacks, “Amdocs’ fiscal second-quarter results benefited from new customer gains, penetration into new regions and a number of managed services awards. Digital modernization requirements of many of Amdocs’ communications, Pay TV and media customers are driving sales in North America. The company is also benefiting from partnerships with key companies. Moreover, it stands to greatly 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. Shares have underperformed the industry year to date.”
A number of other brokerages have also commented on DOX. JPMorgan Chase & Co. dropped their price target on Amdocs from $70.00 to $67.00 and set a neutral rating on the stock in a report on Wednesday, May 15th. ValuEngine lowered Amdocs from a hold rating to a sell rating in a report on Friday, February 15th. Finally, BidaskClub lowered Amdocs from a sell rating to a strong sell rating in a report on Thursday, April 11th. One research analyst has rated the stock with a sell rating, four have given a hold rating and two have given a buy rating to the stock. The stock currently has an average rating of Hold and a consensus target price of $71.40.
Amdocs (NASDAQ:DOX) last issued its quarterly earnings results on Tuesday, May 14th. The technology company reported $1.06 EPS for the quarter, topping the Zacks’ consensus estimate of $1.03 by $0.03. The business 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%. Amdocs’s quarterly revenue was up 2.8% compared to the same quarter last year. During the same period last year, the company posted $0.95 earnings per share. On average, sell-side analysts forecast that Amdocs will post 4.01 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Friday, July 19th. Shareholders of record on Friday, June 28th will be paid a $0.285 dividend. The ex-dividend date is Thursday, June 27th. This represents a $1.14 annualized dividend and a dividend yield of 1.87%. Amdocs’s payout ratio is presently 30.48%.
Several institutional investors and hedge funds have recently modified their holdings of the business. Lunia Capital LP bought a new stake in shares of Amdocs in the fourth quarter valued at $20,647,000. FMR LLC raised its stake in shares of Amdocs by 12.1% in the first quarter. FMR LLC now owns 20,412,323 shares of the technology company’s stock valued at $1,104,510,000 after buying an additional 2,203,154 shares during the period. Massachusetts Financial Services Co. MA raised its stake in shares of Amdocs by 7.1% in the fourth quarter. Massachusetts Financial Services Co. MA now owns 6,903,063 shares of the technology company’s stock valued at $404,382,000 after buying an additional 456,936 shares during the period. Wells Fargo & Company MN raised its stake in shares of Amdocs by 28.1% in the first quarter. Wells Fargo & Company MN now owns 5,951,683 shares of the technology company’s stock valued at $322,045,000 after buying an additional 1,303,903 shares during the period. Finally, BlackRock Inc. raised its stake in shares of Amdocs by 3.7% in the fourth quarter. BlackRock Inc. now owns 4,031,466 shares of the technology company’s stock valued at $236,162,000 after buying an additional 142,470 shares during the period. Hedge funds and other institutional investors own 93.02% of the company’s stock.
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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