Amdocs Limited (DOX) Being Snapped Up By Insiders

Amdocs Limited (NASDAQ:DOX) has been upgraded by Jefferies, which now rates the stock as Buy versus Hold prior rating, according to a note issued on March 19. Analysts at Stifel, maintained the company shares at Buy on January 31 but switched target price from $72 to $75. Analysts at JP Morgan, made their first call about the stock on May 09, recommending it is Neutral. BofA/Merrill analysts came out with bullish views on January 28 when the call was made. They think the stock is now Buy compared to to their prior call for Neutral.

DOX stock dropped -0.37% in recent trade and currently has a stock-market value of $7.57B. The shares finished at $54.22, after trading as low as $54.15 earlier in the session. It hit an intraday high Thursday at $54.52. Trading activity significantly weakened as the volume at ready counter decreased to 902,030 shares versus 1,045,295 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 1,334,562 shares. The stock is now 3.08% above against its bear-market low of $52.6 on January 23, 2019. It has retreated -32.28% since it’s 52-week high of $71.72 reached in March. Now the market price is down -20.95% on the year and down -7.44% YTD.

Wall Street’s most bullish Amdocs Limited (NASDAQ:DOX) analysts are predicting the share price to blow past $77 per share during the next 12 months. The current median share price forecast by them is $70, suggesting that the stock could increase 29.1% in that time frame. The average price target of $70.57 calls for a nearly 30.15% increase in the stock price.

Amdocs Limited (DOX)’s 50 day simple moving average (SMA 50) price is $56.64 and its 200-day simple moving average (SMA 200) price is $62.96. The company’s stock currently has a total float of 138.78M shares. Its weekly volatility is hovering around 2.05% and felt 1.6% volatility in price over a month. On the upside, the share price will test short term resistance at around $54.44. On a downside, the stock is likely to find some support, which begins at $54.07. The failure to get near-term support could push it to $53.93.

When looking at valuations, Amdocs Limited (DOX) has a pricey P/E of 22.73x as compared to industry average of 22.36x. Moreover, it trades for 12.08 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 2.19x price/book and 1.89x price/sales. It’s also very liquid in the near term, with a current ratio of 1.3. The stock has a debt/capital of 0.

Shares of DOX have dropped -2.9% since the company’s most recent earnings report. Over the past 12 fiscal quarters, Amdocs Limited (NASDAQ:DOX) has topped consensus earnings estimates in 6 quarters (50%), missed earnings in 4 quarters (33%), whereas at 2 occasion EPS met analyst expectations. DOX last reported earnings that receded expectations. The company raked in $0.98 per share, -11.71% change on the same period last year. That was worse than consensus for $0.99. Revenue for the recent quarter stood at $1.01 billion, up 4% on last year and below the $1.01 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $1.04 billion to $1.06 billion, which should be compared with $0 generated last year. EPS is seen in a range of $1.08 to $1.1, against the $1.11 reported a year ago.