Wealth Dimensions Group Ltd. (WDG) recently reported a 26.5% increase in their holdings of Accenture plc (NYSE:ACN), according to the company’s Form 13F filing with the Securities and Exchange Commission (SEC). The information technology services provider, known for its strategy, consulting, digital, technology, and operations services across various industries, saw an additional 409 shares purchased by WDG during the fourth quarter. This brings WDG’s total holding of Accenture PLC’s stock to 1,951 shares valued at $521,000.
On Thursday, March 23rd, Accenture announced its quarterly earnings results. For that period, it reported $2.69 EPS for the quarter- surpassing analysts’ consensus estimate of $2.49 by $0.20. Its revenue was also up by 5.1% compared to the same quarter the previous year with a net margin of 11.00% and returns on equity at 30.73%. Analysts predict that for this year’s fiscal period end, Accenture will have posted a total of 11.57 earnings per share.
According to reports from Bloomberg, several research firms have weighed in on ACN’s potential as an investment vehicle with varying opinions about its current status and projected growth trajectory moving forward. Royal Bank of Canada gave it an “outperform” rating while maintaining their price target at $340 from $335; StockNews.com initiated coverage on ACN with a “buy” rating; BMO Capital Markets raised its target price from $310-$327; Wedbush reiterated an “outperform” rating while setting a price target at $300 per share; finally Citigroup announced a “buy” rating while increasing their target price from $300-$310 per share.
As Bloomberg also highlights, despite two sell ratings on ACN stock which reflect negative sentiment among some analysts towards its future prospects; it presently has a consensus rating of “Moderate Buy”. Additionally, the consensus price target for Accenture shares sits at $314.00.
Thus, despite some hesitation from some quarters, Accenture PLC continued to generate interest as an investment opportunity among professionals. Wealth Dimensions Group Ltd.’s increased holdings, in particular, reflect a strong belief in the company’s potential to continue growing and generating profits for shareholders. Though it remains to be seen how things actually play out over the next few quarters or years, many are keeping a close eye on ACN and its market dynamics.
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Hedge Funds Increase Holdings in Accenture PLC as Company’s Share Price Rises
Accenture PLC, the leading technology consulting and outsourcing provider, has recently seen a surge in holdings by hedge funds. Kestra Advisory Services LLC lifted its holdings in Accenture by 40.7% earlier this year, with other firms also increasing their positions. Currently, institutional investors and hedge funds own 73.97% of the company’s stock. The company’s share price has been on an upward trend, reaching $303.06 as of May 28th but has fluctuated between its annual high and low over the past year.
Several research firms have recently weighed in on the company, with most giving it a “buy” rating and Royal Bank of Canada lifting their price target from $335 to $340 in March of this year. Additionally, Accenture announced a quarterly dividend payout in May with a yield of 1.48%.
In terms of insider activity, Ellyn Shook and Jean-Marc Ollagnier both sold shares earlier this year with Shook selling 5,250 shares for just under $1.5 million and Ollagnier selling 6,250 shares for $1.75 million.
Accenture is a global leader in consulting services operating across several industries ranging from banking to manufacturing to government institutions. The firm provides digital platform integration solutions that help businesses modernize customer engagement platforms while streamlining operations maximizing business outcomes.
As we see companies continue to focus more on digital transformation amidst changing consumer behaviours accelerated during the pandemic period; Accenture is well-positioned to lead these transformations and harnessing opportunities for growth with its strong position supported by strategic acquisitions positioning them as market leaders globally.
