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

Key Points

• Analysts remain cautious on Infosys: Ten brokerages give the stock an average “Reduce” recommendation, comprising one sell rating and nine holds. The average 12-month price target is $11.585.
• Infosys’ latest quarterly results fell short of expectations, with EPS of $0.20 versus the $0.21 consensus and revenue of $4.99 billion versus estimates of $5.08 billion.
• Several institutional investors increased their positions in the second quarter, but institutional ownership remains relatively limited at 16.2% of outstanding shares.

Shares of Infosys Ltd. (NYSE:INFY - Get Free Report) have been given an average recommendation of "Reduce" by the ten ratings firms that are currently covering the firm, MarketBeat.com reports. One investment analyst has rated the stock with a sell rating and nine have assigned a hold rating to the company. The average 12-month price objective among brokers that have issued a report on the stock in the last year is $11.5850.

A number of research analysts recently weighed in on INFY shares. CLSA downgraded Infosys from an "outperform" rating to a "hold" rating in a research note on Wednesday, August 19th. HSBC set a $11.47 target price on Infosys and gave the stock a "hold" rating in a research report on Friday, July 24th. BMO Capital Markets reiterated a "market perform" rating and issued a $12.00 target price (down from $13.00) on shares of Infosys in a report on Friday, July 24th. Jefferies Financial Group reissued a "hold" rating on shares of Infosys in a research report on Monday, August 31st. Finally, Stifel Nicolaus set a $13.00 price target on shares of Infosys and gave the company a "hold" rating in a research note on Thursday, July 16th.

Infosys Stock Up 1.6%

NYSE:INFY opened at $11.09 on Friday. Infosys has a twelve month low of $10.30 and a twelve month high of $30.00. The company has a fifty day moving average of $11.73 and a 200-day moving average of $12.43. The firm has a market capitalization of $44.89 billion, a P/E ratio of 13.69, a P/E/G ratio of 2.54 and a beta of 0.87.

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

Institutional Investors Weigh In On Infosys

Several hedge funds and other institutional investors have recently made changes to their positions in INFY. Sequoia Financial Advisors LLC boosted its stake in Infosys by 32.8% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 109,291 shares of the technology company's stock valued at $1,146,000 after purchasing an additional 26,984 shares during the last quarter. Tidal Investments LLC increased its holdings in Infosys by 106.3% during the 2nd quarter. Tidal Investments LLC now owns 125,298 shares of the technology company's stock worth $1,314,000 after purchasing an additional 64,563 shares in the last quarter. WINTON GROUP Ltd purchased a new stake in shares of Infosys in the second quarter worth approximately $1,907,000. Engineers Gate Manager LP lifted its holdings in shares of Infosys by 98.7% in the second quarter. Engineers Gate Manager LP now owns 381,772 shares of the technology company's stock valued at $4,005,000 after purchasing an additional 189,631 shares in the last quarter. Finally, Nykredit A S bought a new position in shares of Infosys in the second quarter valued at approximately $9,307,000. 16.20% of the stock is owned by institutional investors.

About Infosys

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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