TLDR
- ACN stock rose 1.65% on Friday to $170.28, snapping a five-day losing streak, though it remains 46% below its 52-week high of $317.31.
- Vontobel Holding raised its stake in ACN by 36.8% in the fourth quarter, adding 43,637 shares worth about $43.5 million.
- CEO Atsushi Egawa sold 4,872 shares at $177.14 on April 30 under a pre-arranged Rule 10b5-1 plan.
- Truist downgraded ACN from buy to hold and lowered its price target from $260 to $210; Many others have also reduced goals
- Accenture beat third-quarter earnings estimates with EPS of $2.93 vs. $2.84 expected, on revenue of $18.04 billion
Accenture (ACN) stock rose 1.65% on Friday, closing at $170.28, snapping a five-day losing streak. The broader market also rose, with the S&P 500 up 0.50% and the Dow Jones up 0.70%.
Despite Friday’s bounce, ACN is still 46% below its 52-week high of $317.31. This gap tells you a lot about the direction sentiment has drifted over the past year.
Trading volume was 4.0 million, below the 50-day average of 5.4 million, suggesting Friday’s move was not driven by increased conviction.
ACN It opened at $169.95 on Friday. The stock hit a 12-month low of $155.82 and a market cap of about $113 billion. Its 50-day moving average sits at $181.79 and its 200-day moving average sits at $221.83 — both well above where the stock is trading.
Institutional buying and insider selling
Vontobel Holding raised its stake in ACN by 36.8% in the 4th quarter, adding 43,637 shares. The fund now owns 162,315 shares worth about $43.5 million.
Other big names also adjusted their positions. Vanguard added 854,361 shares in the fourth quarter, bringing its total to more than 66 million. Massachusetts Financial Services raised its stake by 5.4%, adding 546,198 shares. Overall, institutional investors own 75.14% of ACN shares.
On the inside side, CEO Atsushi Igawa sold 4,872 shares on April 30 at an average price of $177.14, for a total of about $863,000. The sale was completed under pre-arranged Rule 10b5-1, and Egawa now owns 12,802 shares.
The sale reduced his ownership stake by 27.57%, which is worth keeping an eye on even if the mechanism is planned.
Analysts pull back on price targets
Wall Street It has trimmed its expectations for ACN. Truist has been the most vocal, lowering its rating from buy to hold and lowering its target from $260 to $210 on June 1.
Wells Fargo cut its target from $275 to $248 but maintained its Overweight rating. Morgan Stanley cut from $320 to $240, while also maintaining the overweight. Royal Bank of Canada trimmed from $295 to $253 with an outperform rating. BMO Capital Markets fell from $300 to $230 as the market performed.
Despite the downgrades, the consensus across 27 analysts remains a moderate buy, with an average price target of $259.89 – well above the current trading price.
Profits win, dividends paid
ACN last announced its quarterly earnings on March 20. It reported earnings per share of $2.93, beating the consensus estimate of $2.84. Revenue was $18.04 billion, beating estimates of $17.80 billion, and up 7.8% year over year.
The company paid a quarterly dividend of $1.63 per share on May 15. This works out to $6.52 per year, which represents a 3.8% return at current prices. The payout ratio is 53.40%.
Analysts currently expect full-year EPS to be $13.87 for the fiscal year.
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