Why Accenture Stock Lagged the Market Today
The stock of tech-focused consultancy (NYSE: ACN) couldn't quite keep pace with the rest of the equity market on Wednesday. The company's shares closed the day nearly 1% lower, on news that it's opening its wallet to buy a cutting-edge technology business. By comparison, the benchmark S 500 index landed in positive territory at roughly the same percentage rate.
Accenture's new asset is Cientra, a privately held U.S. company with a presence abroad in both Europe (specifically Germany) and India. The move seems rather synergistic, as Cientra is a peer. In Accenture's words, the company "brings consulting expertise in embedded IoT and application-specific integrated circuit design and verification capabilities." Accenture added that this will complement its own expertise in microprocessor design.
The big consultancy did not disclose either the price or the terms of the deal. Investors tend not to like uncertainty, so this was probably one factor in their mildly negative reaction to the news.
Source Fool.com
Accenture plc A Stock
The stock is an absolute favorite of our community with 28 Buy predictions and no Sell predictions.
As a result the target price of 345 € shows a slightly positive potential of 15.85% compared to the current price of 297.8 € for Accenture plc A.
