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Manish Sharma, CEO-The Americas of Accenture plc (NYSE:ACN), recently sold a significant number of the company’s Class A ordinary shares. According to a recent SEC filing, Sharma disposed of shares amounting to a total value of $270,886. These transactions were executed on April 11 and involved multiple trades with prices ranging from $278.52 to $284.71 per share. The stock, currently trading at $289.79, sits near its 52-week low of $275.01, significantly below its 52-week high of $398.35. According to InvestingPro analysis, Accenture appears undervalued based on its Fair Value estimate.
The sales were part of a planned disposition under a Rule 10b5-1 trading plan, a common strategy that allows insiders to sell stocks at predetermined intervals. After these transactions, Sharma’s direct ownership stands at 1,472 shares. The $181.93 billion market cap company maintains strong fundamentals with a ’GOOD’ Financial Health score and a PEG ratio of 2.42. For deeper insights into Accenture’s valuation and 12 additional ProTips, visit InvestingPro.
In other recent news, Accenture has announced its second-quarter fiscal year 2025 results, showing a modest outperformance in both revenue and earnings per share (EPS) compared to consensus estimates. Despite this, the company’s operating income slightly missed expectations, prompting Piper Sandler to lower its price target for Accenture from $396 to $364, while maintaining an Overweight rating. Similarly, Baird reduced its price target to $372 from $390 but kept an Outperform rating, citing Accenture’s strong market position and potential future catalysts like improvements in IT spending and General AI investments. Mizuho (NYSE:MFG) also adjusted its price target down to $365 from $398, maintaining an Outperform rating, and highlighted Accenture’s leadership in next-generation technology solutions such as Generative AI.
BMO Capital Markets, on the other hand, maintained its Market Perform rating with a price target of $355, pointing to the widening gap between Accenture’s recent signings and revenue projections as a factor. The firm expressed confidence in the current estimates but noted limited potential for significant upside in the stock. Piper Sandler also expressed caution regarding the IT services industry’s outlook, suggesting that companies like Accenture, which focus on engineering and digital transformation, could benefit from AI initiatives. However, they noted that the rapidly changing landscape influenced by AI, automation, and shifting business models could pressure growth rates.
Accenture’s financial outlook for fiscal year 2025 has been updated, with revenue and EPS projections tightening to the upside, though operating margins are expected to narrow. Despite some challenges, analysts continue to recognize Accenture’s resilience and potential for long-term growth, with several firms maintaining positive ratings. The company’s ongoing focus on AI and digital transformation is seen as a promising area for future revenue generation.
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