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Amdocs Ltd stock reached a 52-week low, closing at 78.55 USD. This decline marks a significant point in the company’s performance over the past year. The stock has experienced a 1-year change of -9.69%, reflecting challenges that have impacted its market valuation. Despite this decline, InvestingPro data indicates the company appears significantly undervalued compared to its Fair Value, with analysts maintaining a strong buy consensus and setting price targets up to 111 USD. This 52-week low highlights the pressures Amdocs has faced in maintaining its stock value amid broader market conditions and company-specific factors. Investors are closely monitoring the situation to gauge future performance and potential recovery. The company maintains a healthy 2.51% dividend yield with 13 consecutive years of dividend increases and a solid financial health score of "GOOD" according to InvestingPro, which offers 10+ additional insights and a comprehensive Pro Research Report on this stock among 1,400+ US equities analyzed.
In other recent news, Amdocs Limited reported its fourth-quarter fiscal 2025 results, slightly surpassing analyst expectations. The company posted adjusted earnings per share of $1.83, just above the consensus estimate of $1.82. Revenue was recorded at $1.15 billion, slightly exceeding the forecast of $1.14 billion, despite a 9% year-over-year decline attributed to the phase-out of low-margin, non-core businesses. Additionally, Amdocs announced an 8% increase in its quarterly dividend, reflecting a shift towards higher-margin business activities.
Analyst firms BofA Securities and Stifel have both lowered their price targets for Amdocs to $97 from $100, while maintaining a Buy rating. BofA Securities cited slower growth as a factor, whereas Stifel described the earnings report as "decidedly mixed," noting that revenue, earnings per share, and free cash flow exceeded expectations, but margins were lighter than anticipated. These developments highlight Amdocs’ strategic focus on operational efficiency and its ongoing investments in artificial intelligence.
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