Amdocs (NASDAQ:DOX) Sets New 12-Month Low on Analyst Downgrade

Amdocs Limited (NASDAQ:DOX) hit a new 52-week low during mid-day trading on Thursday after Bank of America lowered their price target on the stock from $100.00 to $97.00. Bank of America currently has a buy rating on the stock. Amdocs traded as low as $76.50 and last traded at $77.36, with a volume of 4156965 shares changing hands. The stock had previously closed at $83.96.

Other equities research analysts have also issued research reports about the company. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Amdocs in a research report on Thursday, October 30th. Wall Street Zen lowered shares of Amdocs from a “buy” rating to a “hold” rating in a research note on Saturday, November 8th. Finally, Stifel Nicolaus reduced their target price on shares of Amdocs from $100.00 to $97.00 and set a “buy” rating on the stock in a report on Wednesday. Two research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $97.00.

Institutional Investors Weigh In On Amdocs

Institutional investors have recently added to or reduced their stakes in the business. Alyeska Investment Group L.P. increased its stake in Amdocs by 38.6% in the first quarter. Alyeska Investment Group L.P. now owns 2,329,767 shares of the technology company’s stock valued at $213,174,000 after purchasing an additional 648,693 shares during the last quarter. American Century Companies Inc. boosted its holdings in shares of Amdocs by 23.5% in the 1st quarter. American Century Companies Inc. now owns 2,242,829 shares of the technology company’s stock valued at $205,219,000 after buying an additional 426,911 shares in the last quarter. Nuveen LLC purchased a new position in shares of Amdocs in the 1st quarter valued at $36,921,000. Clal Insurance Enterprises Holdings Ltd grew its position in shares of Amdocs by 500.0% in the 3rd quarter. Clal Insurance Enterprises Holdings Ltd now owns 420,000 shares of the technology company’s stock valued at $34,461,000 after buying an additional 350,000 shares during the last quarter. Finally, LSV Asset Management raised its stake in Amdocs by 11.1% during the 1st quarter. LSV Asset Management now owns 3,180,501 shares of the technology company’s stock worth $291,016,000 after acquiring an additional 317,412 shares in the last quarter. Hedge funds and other institutional investors own 92.02% of the company’s stock.

Amdocs Price Performance

The stock has a market capitalization of $8.68 billion, a price-to-earnings ratio of 15.60, a price-to-earnings-growth ratio of 1.40 and a beta of 0.51. The company has a current ratio of 1.22, a quick ratio of 1.22 and a debt-to-equity ratio of 0.23. The company’s 50 day moving average is $83.19 and its 200 day moving average is $87.33.

Amdocs (NASDAQ:DOX) last issued its quarterly earnings data on Tuesday, November 11th. The technology company reported $1.83 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.82 by $0.01. Amdocs had a return on equity of 19.66% and a net margin of 11.94%.The company had revenue of $1.15 billion for the quarter, compared to analyst estimates of $1.15 billion. During the same quarter last year, the company posted $1.70 earnings per share. The business’s quarterly revenue was down 9.0% compared to the same quarter last year. Amdocs has set its FY 2026 guidance at 7.270-7.550 EPS. Q1 2026 guidance at 1.730-1.790 EPS. Research analysts anticipate that Amdocs Limited will post 6.21 EPS for the current fiscal year.

Amdocs Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, January 30th. Shareholders of record on Wednesday, December 31st will be given a dividend of $0.527 per share. The ex-dividend date of this dividend is Wednesday, December 31st. This represents a $2.11 annualized dividend and a yield of 2.7%. Amdocs’s payout ratio is 42.60%.

About Amdocs

Amdocs Limited, through its subsidiaries, provides software and services worldwide. It designs, develops, operates, implements, supports, and markets open and modular cloud portfolio. The company provides CES23, a 5G and cloud-native microservices-based market-leading customer experience suite, that enables service providers to build, deliver, and monetize advanced services; Amdocs Subscription Marketplace, a software-as-a-service-based platform that includes an expansive network of pre-integrated digital services, such as media, gaming, eLearning, sports, and retail to security and business services; the monetization suite for charging, billing, policy, and revenue management; Intelligent networking suite with a set of modular, flexible, and open service lifecycle management capabilities for network automation journeys; amAIz, a telco GenAI framework; Amdocs Digital Brands Suite, a pre-integrated digital business suite; and Amdocs eSIM Cloud for service providers.