Accenture (NYSE: ACN) has seen its price target adjusted upward from $205.00 to $210.00 by analysts at Rothschild & Co Redburn, as reported on October 22, 2023. The firm continues to maintain a “neutral” rating on the stock of the global professional services company, which operates in the information technology services sector. The new price target indicates a potential downside of approximately 19.16% from Accenture’s current trading price.
Several other financial institutions have also recently revised their price targets for Accenture. On December 10, 2023, Jefferies Financial Group raised its price objective from $250.00 to $270.00 while issuing a “hold” rating. Similarly, Susquehanna increased its target from $270.00 to $277.00, also maintaining a “neutral” rating. Deutsche Bank Aktiengesellschaft set a new price target of $265.00, up from $235.00, while reiterating a “hold” rating on the stock.
The Goldman Sachs Group has taken a more bullish stance, restating a “buy” rating with a price target of $330.00 as of December 18, 2023. According to MarketBeat, the consensus rating for Accenture is “Moderate Buy,” with an average target price set at $294.96.
Accenture’s Recent Earnings Performance
On December 18, 2023, Accenture released its quarterly earnings, reporting earnings per share (EPS) of $3.94, surpassing analysts’ expectations of $3.73 by $0.21. The company’s net margin was 10.76%, and it achieved a return on equity of 26.65%. Accenture’s revenue for the quarter reached $18.74 billion, exceeding the projected $18.51 billion. This marks a 5.7% increase compared to the same quarter in the previous year, when the company reported an EPS of $3.59.
Looking ahead, Accenture has provided guidance for fiscal year 2026, estimating an EPS range of $13.520 to $13.900. Analysts predict the company will report an EPS of 12.73 for the current year.
Insider Transactions and Institutional Investments
In related news, insider Manish Sharma sold 6,902 shares of Accenture on October 22, 2023, at an average price of $250.01, resulting in a sale valued at approximately $1.73 million. Following this transaction, Sharma holds 1,860 shares of the company. Similarly, CEO Ryoji Sekido sold 2,500 shares on the same day for around $623,675. Post-sale, Sekido’s ownership has decreased to 1,390 shares.
In the last ninety days, insiders have sold a total of 33,319 shares, amounting to approximately $8.34 million. Notably, only 0.02% of Accenture’s stock is owned by company insiders.
Institutional investors have also been active in managing their stakes in Accenture. Vanguard Group Inc. increased its holdings by 2.1% in the second quarter, now owning over 65 million shares valued at approximately $19.47 billion after acquiring an additional 1.3 million shares. State Street Corp raised its stake by 0.4%, owning about 28.14 million shares valued at $6.94 billion.
Capital International Investors significantly increased its position by 41.1%, owning 17.13 million shares valued at around $4.22 billion. Other notable institutional investors include Geode Capital Management LLC and Massachusetts Financial Services Co., which have also increased their holdings in Accenture during the third quarter.
Currently, approximately 75.14% of Accenture’s stock is owned by hedge funds and other institutional investors, reflecting a strong interest in the company’s prospects as it continues to navigate the evolving landscape of technology and consulting services.
In conclusion, Accenture’s recent adjustments in price targets, robust quarterly earnings, and active insider and institutional trading present a complex yet promising picture of the company’s position in the market. With a focus on future growth, Accenture remains a key player in the global professional services sector.
