Accenture (NYSE:ACN) Stock Jumps 4.6% – Here’s Why

Accenture PLC (NYSE:ACN) shot up 4.6% during mid-day trading on Thursday. The company traded as high as $204.97 and last traded at $205.69. 682,349 shares traded hands during trading, a decline of 90% from the average session volume of 6,956,036 shares. The stock had previously closed at $196.64.

Analysts Set New Price Targets

A number of equities analysts have weighed in on ACN shares. Evercore set a $250.00 target price on shares of Accenture and gave the company an “outperform” rating in a research note on Thursday, October 1st. UBS Group restated a “buy” rating on shares of Accenture in a research note on Wednesday, September 30th. JPMorgan Chase & Co. lifted their price objective on Accenture from $179.00 to $200.00 and gave the company an “overweight” rating in a research note on Friday, September 25th. DA Davidson dropped their target price on Accenture from $275.00 to $175.00 and set a “buy” rating on the stock in a report on Tuesday, June 23rd. Finally, William Blair downgraded Accenture from an “outperform” rating to a “market perform” rating in a report on Thursday, June 18th. Eleven investment analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $219.15.

Accenture Stock Up 0.7%

The stock has a market cap of $132.18 billion, a PE ratio of 14.57, a PEG ratio of 1.59 and a beta of 1.11. The company has a debt-to-equity ratio of 0.31, a current ratio of 1.43 and a quick ratio of 1.34. The company has a 50 day moving average price of $182.78 and a two-hundred day moving average price of $173.38.

Accenture (NYSE:ACN) last issued its earnings results on Thursday, October 1st. The information technology services provider reported $3.29 earnings per share for the quarter, topping analysts’ consensus estimates of $3.18 by $0.11. The business had revenue of $18.68 billion during the quarter, compared to analyst estimates of $18.03 billion. Accenture had a return on equity of 26.53% and a net margin of 11.28%.Accenture’s revenue was up 6.2% on a year-over-year basis. During the same quarter in the previous year, the firm earned $3.03 EPS. Accenture has set its FY 2027 guidance at 14.390-14.810 EPS. Analysts expect that Accenture PLC will post 14.68 EPS for the current year.

Accenture Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, November 13th. Investors of record on Tuesday, October 13th will be given a dividend of $1.71 per share. This represents a $6.84 dividend on an annualized basis and a yield of 3.5%. This is a positive change from Accenture’s previous quarterly dividend of $1.63. The ex-dividend date is Tuesday, October 13th. Accenture’s payout ratio is currently 48.08%.

Accenture announced that its Board of Directors has initiated a stock buyback program on Tuesday, June 23rd that authorizes the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization authorizes the information technology services provider to buy up to 2.4% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s management believes its stock is undervalued.

Insiders Place Their Bets

In other Accenture news, General Counsel Joel Unruch sold 10,498 shares of the business’s stock in a transaction on Thursday, July 30th. The shares were sold at an average price of $162.98, for a total transaction of $1,710,964.04. Following the completion of the sale, the general counsel directly owned 17,735 shares in the company, valued at approximately $2,890,450.30. The trade was a 37.18% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.02% of the company’s stock.

Institutional Trading of Accenture

A number of hedge funds have recently bought and sold shares of ACN. State Street Corp grew its stake in shares of Accenture by 0.5% during the 4th quarter. State Street Corp now owns 28,264,675 shares of the information technology services provider’s stock valued at $7,583,462,000 after purchasing an additional 129,610 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in Accenture by 1.2% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 5,393,818 shares of the information technology services provider’s stock valued at $1,447,161,000 after buying an additional 63,760 shares during the last quarter. Bank of America Corp DE boosted its stake in shares of Accenture by 2.2% during the 1st quarter. Bank of America Corp DE now owns 6,531,231 shares of the information technology services provider’s stock worth $1,295,078,000 after acquiring an additional 143,483 shares during the last quarter. Deutsche Bank AG grew its position in shares of Accenture by 13.6% during the 4th quarter. Deutsche Bank AG now owns 3,093,932 shares of the information technology services provider’s stock valued at $830,102,000 after acquiring an additional 369,433 shares during the period. Finally, First Trust Advisors LP increased its stake in shares of Accenture by 120.0% in the 1st quarter. First Trust Advisors LP now owns 3,482,150 shares of the information technology services provider’s stock worth $690,475,000 after purchasing an additional 1,899,305 shares in the last quarter. Hedge funds and other institutional investors own 75.14% of the company’s stock.

About Accenture

Accenture plc (NYSE: ACN) is a global professional services company that helps organizations improve performance, modernize operations and respond to technological and market changes. Its services span strategy and consulting, technology, operations, and managed services, with expertise across industries including communications, financial services, health care, public service, retail, manufacturing and resources.

The company provides digital transformation, cloud migration, data and artificial intelligence, cybersecurity, systems integration and technology implementation services.