Amdocs (NASDAQ:DOX) Downgraded 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 released on Tuesday, Zacks.com reports. Zacks Investment Research currently has $67.00 price objective 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 analysts have also recently weighed in on the company. BidaskClub cut Xencor from a sell rating to a strong sell rating in a report on Tuesday, June 11th. TheStreet cut TIM Participacoes from a b rating to a c+ rating in a report on Tuesday, June 4th. ValuEngine upgraded Vermillion from a hold rating to a buy rating in a research note on Wednesday, May 15th. Finally, JPMorgan Chase & Co. restated a neutral rating on shares of Anglo American in a research note on Wednesday, May 15th. Six analysts have rated the stock with a hold rating and one has assigned a buy rating to the stock. The stock has a consensus rating of Hold and a consensus price target of $71.20.

NASDAQ:DOX traded up $0.16 during mid-day trading on Tuesday, hitting $64.01. 2,939 shares of the stock were exchanged, compared to its average volume of 628,790. The stock has a market cap of $8.82 billion, a PE ratio of 17.11, a price-to-earnings-growth ratio of 1.86 and a beta of 0.42. The stock’s 50-day moving average price is $61.86. Amdocs has a fifty-two week low of $52.60 and a fifty-two week high of $68.99.

Amdocs (NASDAQ:DOX) last released its quarterly earnings results on Tuesday, May 14th. The technology company reported $1.06 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $1.03 by $0.03. The business had revenue of $1.02 billion during the quarter, compared to analysts’ expectations of $1.02 billion. Amdocs had a return on equity of 15.18% and a net margin of 8.96%. The firm’s revenue for the quarter was up 2.8% compared to the same quarter last year. During the same period last year, the firm posted $0.95 EPS. Equities analysts forecast that Amdocs will post 4.01 EPS for the current fiscal year.

The firm 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 $0.285 dividend. The ex-dividend date of this dividend is Thursday, June 27th. This represents a $1.14 annualized dividend and a dividend yield of 1.78%. Amdocs’s payout ratio is 30.48%.

Several institutional investors and hedge funds have recently modified their holdings of the company. Eqis Capital Management Inc. lifted its position in shares of Amdocs by 6.5% during the second quarter. Eqis Capital Management Inc. now owns 6,006 shares of the technology company’s stock worth $373,000 after acquiring an additional 365 shares in the last quarter. Fox Run Management L.L.C. purchased a new stake in shares of Amdocs during the second quarter worth $527,000. CenturyLink Investment Management Co purchased a new stake in shares of Amdocs during the second quarter worth $1,503,000. First Hawaiian Bank lifted its position in shares of Amdocs by 15.9% during the second quarter. First Hawaiian Bank now owns 14,687 shares of the technology company’s stock worth $912,000 after acquiring an additional 2,017 shares in the last quarter. Finally, CENTRAL TRUST Co lifted its position in shares of Amdocs by 56.2% during the second quarter. CENTRAL TRUST Co now owns 1,098 shares of the technology company’s stock worth $69,000 after acquiring an additional 395 shares in the last quarter. Institutional investors 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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