As of June 9, 2023, Amdocs Limited (NASDAQ:DOX) has been given a consensus rating of “Moderate Buy” by six research firms that are presently covering the firm. These ratings come from a combination of factors that determine a company’s financial health and potential for growth. Bloomberg reports that one investment analyst has rated the stock with a hold recommendation and four have given a buy recommendation to the company. This analysis has resulted in an average twelve-month price target among brokerages that have issued ratings on the stock in the last year of $102.50.
Founded in 1988, Amdocs Ltd. is a holding company that provides software products and services for communications, entertainment, and media industry service providers. The company’s headquarters are located in Saint Louis, MO. With more than three decades of experience in this field, Amdocs has built a reputation as one of the most innovative companies in this sector.
On Friday, the NASDAQ:DOX opened at $93.36 with a 50-day moving average price of $93.54 and a 200-day moving average price of $91.95. The stock has a market cap of $11.28 billion, which is highly impressive when you consider it operates within one specific industry-related niche.
Amdocs Limited’s financials also paint an attractive picture to potential investors thanks to its PE ratio standing at 21.27; this measure compares the current share price to its earnings per share (EPS). Additionally, its P/E/G ratio of 1.60 suggests solid potential for capital appreciation looking ahead.
To evaluate further where it lies within its market sector or industry group , beta – which indicates how much riskier or safer this specific stock is compared to others on NASDAQ – is also taken into account standing at .66 less volatile compared to other stocks trading on NASDAQ.
Furthermore,a key financial metric, debt-to-equity ratio of 0.21 points to the firm having a low amount of outstanding debts while working capital looks bright with a quick ratio and current ratio standing at an equal ratio of 1.59.
The all-time high Amdocs stock has achieved over the past year stands at $97.08 while its year-low realized at $76.79.
Wrapping up, the market outlook from analysts seems promising for Amdocs Limited (NASDAQ:DOX), with positive consensus indicating moderate buy as well as solid potential for growth-looking ahead that will benefit investors who take positions in this innovative company.
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Amdocs Receives Positive Reviews from Brokerages and Institutional Investors, Positioned for Strong Growth
Amdocs, a technology company in the software and services industry, has recently received positive feedback from various brokerages. On May 11th, 888 reiterated a “reiterates” rating on shares of Amdocs. One week later, StockNews.com assumed coverage and gave a “buy” rating on the stock. Finally, Barclays raised their rating from “equal weight” to “overweight”, increasing their target price from $100.00 to $115.00 on May 16th.
These positive reviews have led to several institutional investors modifying their holdings of DOX. FMR LLC lifted its stake in shares of Amdocs by 13.3% during the first quarter, owning 14,815,460 shares of the company’s stock valued at $1,422,729,000 after buying an additional 1,735,280 shares during the period. Clal Insurance Enterprises Holdings Ltd boosted its holding by 3.7%, having bought an additional 84,106 shares which now amounts to owning a total of 2,376,151 shares worth $228,182,000 as of June 9th.
Parnassus Investments also grew its position in Amdocs by an impressive margin of over double at 116.3%. The company now owns more than two million shares valued at $217 million post acquisition after purchasing an extra 1.2 million new shares during this promising period raising its growth stakes even higher.
Dimensional Fund Advisors LP also played their part with share acquisition and ownership subsequently positioning them as one of the largest holders with ownership that runs up to almost two million dollars valued at $188 million dollars following a purchase of additional stocks amounting to almost thirty thousand units.
Arrowstreet Capital Limited Partnership lifted its position in Amdocs by over eight percent during this fruitful period with an acquisition totaling over one hundred-thirty thousand in new stocks bringing their total market ownership at around 1.8 million units, worth $178,753,000 as of June 9th.
Amdocs also managed to disclose a quarterly dividend and manage its profits effectively enough to provide a payout ratio presently standing at almost forty percent and giving a payoff of a $0.435 dividend for investors on the 30th of June prior to the ex-dividend date. The company expects this policy will continue to improve the positive outlook they have been able to maintain so far in the software and services industry over time.
In conclusion, Amdocs has cemented itself as a promising tech company, drawing attention from both brokerages and institutional investors alike, with dividends expected to bolster this sentiment further in the future.
