Amdocs Stock Falls on Warning of Short-Seller Hedge Fund Spruce Point

Amdocs closed 8.95% down on Nasdaq on Wednesday but is currently trending up

Lilach Baumer 11:0324.01.19
Billing company Amdocs Ltd. has closed 8.95% down on Nasdaq on Wednesday following a critical report by New York-headquartered short-seller hedge fund Spruce Point Capital Management. The fund stated it saw a 25%-50% downside risk to Amdocs' stock price, which stood at $55.06 on Wednesday's close.

 

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Israel-based and Missouri-headquartered Amdocs provides customer experience software and services to communications and media companies. For the fourth quarter of 2018 ending September 30, Amdocs reported revenues of $1 billion, up 2.3% year-over-year, and $3.9 billion in revenues for the entire year.

 

Spruce Point stated it believes Amdocs has "engineered superficial top and bottom-line growth" and that it suspects the company "engages in aggressive percentage-of-completion accounting."

 

Following the report's publication, several U.S. law firms announced they are launching an investigation into whether Amdocs violated federal security laws on behalf of Amdocs investors, and invited concerned stockholders to join them.

 

Amdocs is currently trending up on Nasdaq.

 

Amdocs' offices in Ra'anana. Photo: Orel Cohen Amdocs' offices in Ra'anana. Photo: Orel Cohen

 

 

 

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