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

Shares of Amdocs Limited (NASDAQ:DOX) hit a new 52-week low during 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 traded. The stock had previously closed at $62.43.

Several other research firms have also recently weighed in on DOX. Wall Street Zen raised shares of Amdocs from a “hold” rating to a “buy” rating in a report on Saturday, August 29th. Oppenheimer cut Amdocs from an “outperform” rating to a “market perform” rating in a research report on Wednesday. Finally, Weiss Ratings upgraded shares of Amdocs from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, October 23rd. Three equities 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. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price 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 and hedge funds have recently made changes to their positions in the stock. Pzena Investment Management LLC raised its holdings in Amdocs by 3.4% during the third 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. Dimensional Fund Advisors LP raised its holdings in shares of Amdocs by 19.7% in the first quarter. Dimensional Fund Advisors LP now owns 3,463,797 shares of the technology company’s stock valued at $226,045,000 after buying an additional 571,036 shares during the last quarter. Bank of America Corp DE boosted its stake in shares of Amdocs by 29.1% during the first quarter. Bank of America Corp DE now owns 1,262,263 shares of the technology company’s stock worth $82,375,000 after buying an additional 284,435 shares during the period. First Trust Advisors LP increased its position in Amdocs by 13.9% in the 1st quarter. First Trust Advisors LP now owns 1,077,258 shares of the technology company’s stock valued at $70,302,000 after acquiring an additional 131,197 shares during the period. Finally, Pacer Advisors Inc. raised its stake in Amdocs by 41.6% during the 1st quarter. Pacer Advisors Inc. now owns 448,722 shares of the technology company’s stock valued at $29,284,000 after acquiring an additional 131,913 shares during the last quarter. 92.02% of the stock is currently owned by institutional investors and hedge funds.

Amdocs Trading Down 30.4%

The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 0.23. The stock has a market capitalization of $4.69 billion, a price-to-earnings ratio of 10.47, a P/E/G ratio of 1.01 and a beta of 0.42. The company has a fifty day moving average of $60.65 and a two-hundred day moving average of $62.58.

Amdocs (NASDAQ:DOX) last announced its quarterly earnings results on Wednesday, November 4th. The technology company reported $1.98 earnings per share (EPS) for the quarter, meeting the consensus estimate 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 the consensus estimate of $1.19 billion. During the same quarter in the prior year, the firm earned $1.83 earnings per share. The company’s revenue for the quarter was up 3.8% compared to the same quarter last year. On average, research analysts expect that Amdocs Limited will post 6.57 EPS for the current year.

Amdocs Announces Dividend

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

About Amdocs

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.