Accenture Shares Surge After Positive Earnings Report

Accenture plc (NYSE:ACN) experienced a notable rise in its share price, gaining 7.1% during mid-day trading on Thursday. This increase followed the announcement of quarterly earnings that surpassed analyst expectations. The stock reached a peak of $376.91 during the session before settling at $372.12, which marked a significant rise from its previous closing price of $347.61. In total, 2,306,891 shares were traded, representing a decline of 14% from the average trading volume of 2,677,619 shares.

During the reported quarter, Accenture delivered earnings of $3.59 per share, exceeding the consensus estimate of $3.43 by $0.16. The company reported revenues of $17.69 billion, which were also above the consensus of $17.15 billion. Compared to the same period last year, Accenture’s revenue grew by 9%, while the earnings per share in the same quarter last year were $3.27.

Dividend Announcement

On the same day, Accenture declared a quarterly dividend of $1.48 per share, set to be paid on February 14. Investors on record as of January 16 will qualify for this dividend, which translates to an annualized dividend of $5.92, giving the company a yield of 1.59%. The dividend payout ratio stands at 51.79%, reflecting a balanced approach to returning value to shareholders.

Additionally, Accenture’s Board of Directors authorized a share repurchase plan amounting to $4.00 billion. This plan allows the company to repurchase approximately 1.8% of its outstanding shares in the open market, which typically signals that the board believes the stock may be undervalued.

Analyst Ratings Changes

In recent weeks, several analysts have upgraded their ratings for Accenture. UBS Group raised its target price from $400 to $415 while maintaining a “buy” rating. Similarly, Guggenheim increased its target from $380 to $395. Mizuho also raised its target from $352 to $365, rating it as “outperform.” Susquehanna increased its price target from $350 to $360, holding a “neutral” stance. Moreover, The Goldman Sachs Group upgraded its rating from “neutral” to “buy,” with a lifted price target from $370 to $420. Overall, 15 analysts have issued a buy rating for Accenture, while eight have recommended holding the stock, leading to an average rating classified as a “Moderate Buy” with a consensus target price set at $374.82.

Insider Activity at Accenture

In terms of insider trading, CFO Kathleen R. Mcclure sold 5,090 shares of Accenture on October 17 at an average price of $373.22, resulting in a transaction total of nearly $1.9 million. After this sale, she retains 38,825 shares valued at around $14.49 million. Meanwhile, CAO Melissa A. Burgum sold 458 shares on the same day, totaling approximately $170,948. Insider sales over the past three months amounted to 36,298 shares for a value of $13.37 million, with company insiders holding just 0.07% of the stock.

Institutional Trading of Accenture

Recently, major investors have adjusted their positions in Accenture. UBS Asset Management increased its stake by a staggering 378.9% during the third quarter, now holding 5,491,736 shares worth around $1.94 billion. Clearbridge Investments and 1832 Asset Management also raised their holdings significantly. Notably, institutional investors collectively own approximately 75.14% of Accenture’s stock.

Accenture Stock Performance

As of now, Accenture's stock is performing above its 50-day moving average of $360.36 and well above the 200-day average of $336.56. With a market capitalization standing at $232.66 billion, the company displays a price-to-earnings ratio of 32.56 and a price-to-earnings-growth ratio of 3.23, accompanied by a beta of 1.24, indicating moderate volatility compared to the market.

Company Overview

Accenture plc is a global professional services firm that offers a wide array of services, such as strategy and consulting, technology operations, and various industry solutions. Its services include agile transformation, application modernization, data management, and intelligent automation, assuring clients that they receive top-notch solutions tailored to modern demands.

Accenture, Earnings, Shares