Zacks Investment Research downgraded shares of Amdocs (NASDAQ:DOX) from a hold rating to a sell rating in a research note released on Monday.

According to Zacks, “Amdocs' Q4 results improved year-over-year. However, exposure to foreign currency exchange rate risk is a major concern. A sequential impact of $5 million in foreign currency movements affected the top-line. Moreover, high concentration risk remains a significant challenge. Decline in spending by Amdocs’ largest client — AT&T — is affecting the company. Continued drag in the directory systems market remains a headwind. This downtrend, which has been persistent for the past couple of years, is expected to continue. Shares have underperformed the industry on a year-to-date basis. However, Amdocs' growing client base and portfolio expansion are positives. Its support for Comcast Business’ commercially available software-defined wide area networking service is likely to drive growth.”

A number of other research analysts have also weighed in on DOX. TheStreet lowered Amdocs from a b rating to a c+ rating in a report on Friday, November 9th. Robert W. Baird reissued a hold rating and issued a $72.00 price objective on shares of Amdocs in a report on Thursday, August 2nd. Citigroup cut their price objective on Amdocs from $79.00 to $77.00 and set a buy rating on the stock in a report on Thursday, August 2nd. BidaskClub raised Amdocs from a strong sell rating to a sell rating in a report on Friday, September 14th. Finally, Barclays set a $73.00 price objective on Amdocs and gave the company a hold rating in a report on Wednesday, August 1st. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating and five have issued a buy rating to the company. The stock has a consensus rating of Hold and a consensus target price of $72.60.

Amdocs stock opened at $65.48 on Monday. Amdocs has a one year low of $60.50 and a one year high of $71.72. The stock has a market capitalization of $9.44 billion, a price-to-earnings ratio of 17.51, a price-to-earnings-growth ratio of 1.98 and a beta of 0.52.

Amdocs (NASDAQ:DOX) last released its quarterly earnings results on Thursday, November 8th. The technology company reported $0.90 EPS for the quarter, missing analysts’ consensus estimates of $0.92 by ($0.02). Amdocs had a net margin of 8.92% and a return on equity of 15.06%. The business had revenue of $1 billion during the quarter, compared to analysts’ expectations of $1 billion. During the same quarter last year, the business posted $0.94 earnings per share. The company’s quarterly revenue was up 2.3% compared to the same quarter last year. As a group, equities research analysts predict that Amdocs will post 3.92 EPS for the current year.

The company also recently disclosed a quarterly dividend, which will be paid on Friday, January 18th. Stockholders of record on Monday, December 31st will be issued a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.53%. The ex-dividend date of this dividend is Friday, December 28th. Amdocs’s dividend payout ratio is presently 26.74%.

Hedge funds have recently made changes to their positions in the company. Mainstay Capital Management LLC ADV grew its holdings in Amdocs by 6,519.0% during the second quarter. Mainstay Capital Management LLC ADV now owns 6,619 shares of the technology company’s stock worth $100,000 after acquiring an additional 6,519 shares during the period. Meeder Asset Management Inc. acquired a new stake in Amdocs during the second quarter worth about $107,000. Fort L.P. acquired a new stake in Amdocs during the second quarter worth about $118,000. Honkamp Krueger Financial Services Inc. acquired a new stake in Amdocs during the third quarter worth about $124,000. Finally, Dynamic Technology Lab Private Ltd acquired a new stake in Amdocs during the second quarter worth about $205,000. 90.89% of the stock is currently owned by institutional investors and hedge funds.

About Amdocs

Amdocs Limited, through its subsidiaries, provides software and services solutions to the communications, entertainment, pay TV, and media industry service providers worldwide. The company offers customer experience and monetization solutions that allow its customers to contextual and personalize interactions.

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