Infosys Ltd. (NYSE:INFY) Receives Average Rating of "Reduce" from Brokerages

Key Points

• Analysts remain cautious on Infosys: Eleven analysts assign the stock an average “Reduce” rating, consisting of one sell and ten hold recommendations. The average 12-month price target is $11.45.
• Shares are trading near their 12-month low: INFY opened at $10.55, down 1.9%, compared with a 12-month range of $10.30 to $30.00.
• Latest quarterly results fell short of expectations: Infosys reported earnings of $0.20 per share versus the $0.21 consensus estimate and revenue of $4.99 billion versus the expected $5.08 billion.

Infosys Ltd. (NYSE:INFY - Get Free Report) has received an average recommendation of "Reduce" from the eleven analysts that are presently covering the company, MarketBeat reports. One equities research analyst has rated the stock with a sell recommendation and ten have assigned a hold recommendation to the company. The average 1 year target price among brokerages that have covered the stock in the last year is $11.45.

A number of research firms have weighed in on INFY. Jefferies Financial Group reissued a "hold" rating on shares of Infosys in a research report on Monday, August 31st. CLSA downgraded shares of Infosys from an "outperform" rating to a "hold" rating in a research report on Wednesday, August 19th. Stifel Nicolaus set a $13.00 price objective on shares of Infosys and gave the company a "hold" rating in a research note on Thursday, July 16th. JPMorgan Chase & Co. reiterated a "neutral" rating and set a $10.90 price objective (down from $12.70) on shares of Infosys in a research report on Friday, July 24th. Finally, The Goldman Sachs Group reissued a "neutral" rating and set a $10.40 target price on shares of Infosys in a research note on Thursday, October 1st.

Institutional Trading of Infosys

Large investors have recently bought and sold shares of the business. V Square Quantitative Management LLC acquired a new position in shares of Infosys in the 1st quarter valued at about $97,000. TD Waterhouse Canada Inc. grew its stake in Infosys by 14.2% during the second quarter. TD Waterhouse Canada Inc. now owns 9,090 shares of the technology company's stock worth $97,000 after purchasing an additional 1,131 shares during the period. Concurrent Investment Advisors LLC acquired a new stake in Infosys during the second quarter worth approximately $115,000. Laidlaw Wealth Management LLC bought a new stake in Infosys in the second quarter worth approximately $117,000. Finally, Angeles Wealth Management LLC bought a new stake in Infosys in the second quarter worth approximately $125,000. 16.20% of the stock is currently owned by institutional investors and hedge funds.

Infosys Trading Down 1.9%

Shares of INFY opened at $10.55 on Wednesday. The company has a market capitalization of $42.74 billion, a PE ratio of 13.03, a PEG ratio of 2.51 and a beta of 0.88. Infosys has a 12 month low of $10.30 and a 12 month high of $30.00. The stock's 50-day moving average price is $11.60 and its two-hundred day moving average price is $12.06.

Infosys (NYSE:INFY - Get Free Report) last issued its quarterly earnings results on Thursday, July 23rd. The technology company reported $0.20 earnings per share for the quarter, missing the consensus estimate of $0.21 by ($0.01). Infosys had a net margin of 16.38% and a return on equity of 33.91%. The company had revenue of $4.99 billion during the quarter, compared to analyst estimates of $5.08 billion. Equities research analysts predict that Infosys will post 0.81 EPS for the current fiscal year.

Infosys Company Profile

Infosys Ltd. is a digital services and consulting company, which engages in the provision of end-to-end business solutions. It operates through the following segments: Financial Services, Retail, Communication, Energy, Utilities, Resources, and Services, Manufacturing, Hi-Tech, Life Sciences, and All Other. The company was founded by Dinesh Krishnan Swamy, Senapathy Gopalakrishnan, Narayana Ramarao Nagavara Murthy, Raghavan N. S., Ashok Arora, Nandan M. Nilekani, and S. D. Shibulal on July 2, 1981 and is headquartered in Bangalore, India.

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