Technical breakdown accelerates. Accenture (ACN) shares dropped 5.5% to $212.25 on Thursday, extending a brutal monthlong selloff that has erased 25.6% from the stock’s value since January 20. The IT consulting giant closed below $213 for the first time since early 2024, with no immediate fundamental catalyst explaining today’s decline.
Volume signals capitulation. Trading volume of 1.57 million shares came in at just 30% of the recent daily average, suggesting selling pressure from existing holders rather than aggressive new short positions. The stock opened at $215 and steadily deteriorated throughout the morning session, hitting an intraday low of $211.06.
The technical damage is severe. ACN now trades 19.7% below its 50-day moving average of $264.42 and 21.0% below its 200-day moving average of $268.77. The stock has declined in 16 of the past 22 trading sessions, with particularly heavy volume selloffs on February 3 (down to $241.21 on 9.1 million shares) and February 12 (plunge to $222.05 on 9.7 million shares).
Valuation has compressed sharply. The selloff has pushed ACN’s forward P/E ratio down to 14.2x, well below its historical premium to the broader market. Analysts maintain a consensus price target of $292.42, implying 37.8% upside from current levels, with a “buy” rating. The company delivered a 5.9% earnings beat in December, reporting $3.94 per share against estimates of $3.72.
Next earnings loom large. Accenture reports fiscal Q2 results on March 19, with analysts expecting $2.85 per share. Current quarter estimates show a concerning 3% year-over-year decline, which may explain the persistent selling pressure. The company has beaten earnings estimates in seven of the past eight quarters, but forward guidance will be critical given the stock’s technical breakdown.
This article was generated using AlphaStreet’s proprietary financial analysis technology and reviewed by our editorial team.