Major Investors Dump Accenture Shares Amidst Job Cuts and Slowdown Fears
Major investors are selling Accenture shares en masse, sparking concerns about the company's future. Northeast Investment Management and Violich Capital Management have significantly reduced their holdings, with the former selling 21.5% and the latter cutting their position by 13.4%.
Despite Accenture's strong quarterly results, with earnings per share of $3.03 and revenues of $17.60 billion, investors seem to be exiting the company. This could be due to concerns about a slowdown in Accenture's core business. Recently, Accenture announced the elimination of over 11,000 jobs, suggesting a waning demand for traditional consulting services.
Analysts are examining transaction data from large institutional investors to identify the specific institutions behind these large sales. This information is typically provided through regulatory reports like the SEC's 13F forms, but these are not available in real-time and are usually updated with a delay of about 45 days. General market investment management firms like Fidelity, Vanguard, BlackRock, and State Street, which focus on long-term strategic investing, may have recently adjusted their positions.
The mass selling of Accenture shares by major investors raises concerns about the company's future, despite its strong recent performance. Analysts are investigating the reasons behind these sales, which could be due to market strategies, perceived company performance, or long-term investment horizons. As the holiday season approaches, 70% of surveyed retailers fear supply chain problems and 64% worry about inventory shortages, which could impact their businesses.
