108,598 Infosys Ltd. $INFY Shares Sold by RWC Asset Management LLP

Key Points

• RWC Asset Management cut its Infosys stake by 11.3%, selling 108,598 shares and retaining 848,816 shares valued at approximately $9.13 million. Institutional investors collectively own 16.2% of the company.
• Infosys reported strong AI momentum, including a 29% sequential increase in AI revenue and $5.2 billion in large-deal contract value, but quarterly revenue and EPS missed estimates and net profit declined.
• Analyst sentiment remains cautious: most analysts rate Infosys “Hold,” with a consensus “Reduce” rating and an average price target of $11.45; the company also lowered its FY2027 constant-currency revenue-growth outlook to 1%-2%.

RWC Asset Management LLP lessened its holdings in shares of Infosys Ltd. (NYSE:INFY - Free Report) by 11.3% in the third quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 848,816 shares of the technology company's stock after selling 108,598 shares during the quarter. RWC Asset Management LLP's holdings in Infosys were worth $9,133,000 at the end of the most recent reporting period.

Other large investors have also recently modified their holdings of the company. Nisa Investment Advisors LLC lifted its stake in shares of Infosys by 87.1% during the 3rd quarter. Nisa Investment Advisors LLC now owns 3,683 shares of the technology company's stock valued at $40,000 after buying an additional 1,715 shares in the last quarter. V Square Quantitative Management LLC purchased a new position in Infosys in the 1st quarter valued at approximately $97,000. TD Waterhouse Canada Inc. raised its holdings in Infosys by 14.2% during the 2nd quarter. TD Waterhouse Canada Inc. now owns 9,090 shares of the technology company's stock valued at $97,000 after acquiring an additional 1,131 shares during the period. State of Wyoming bought a new stake in Infosys during the 1st quarter valued at $134,000. Finally, Aureus Asset Management LLC purchased a new stake in shares of Infosys during the first quarter worth $142,000. Hedge funds and other institutional investors own 16.20% of the company's stock.

Infosys News Roundup

Here are the key news stories impacting Infosys this week:

• Positive Sentiment: Infosys reported a 29% sequential increase in AI revenue, highlighting demand for its AI-first consulting and technology services. Infosys AI revenue growth
• Positive Sentiment: Second-quarter large-deal total contract value reached $5.2 billion, with 62% coming from net-new business, potentially supporting future revenue growth. Operating margin remained stable at 21%, within the company’s 20%-22% target range. Infosys AI strategy and deal wins
• Neutral Sentiment: Jefferies maintained a Hold rating, suggesting the firm sees a more balanced risk-reward profile following the earnings update. Jefferies Hold rating
• Negative Sentiment: Revenue of $5.145 billion rose 1.5% year over year and 1.2% sequentially in constant currency, but fell short of expectations. Earnings per share of $0.20 also missed the $0.21 consensus estimate. Infosys revenue and guidance miss
• Negative Sentiment: Infosys reduced its FY2027 constant-currency revenue-growth guidance to 1%-2%. Its reported revenue outlook of $20.4 billion-$20.6 billion was broadly in line with consensus, but the lower growth range raised concerns about weak demand and limited near-term expansion. Infosys lowers revenue forecast
• Negative Sentiment: Net profit and EPS declined despite modest revenue growth, reinforcing concerns that AI investments and current business conditions are not yet translating into stronger earnings. Infosys quarterly earnings

Wall Street Analyst Weigh In

Several research analysts have commented on INFY shares. Jefferies Financial Group restated a "hold" rating and issued a $14.31 target price (down from $20.82) on shares of Infosys in a research note on Monday, August 31st. HSBC set a $11.47 price target on Infosys and gave the company a "hold" rating in a research report on Friday, July 24th. Susquehanna cut their price objective on shares of Infosys from $12.00 to $11.00 and set a "neutral" rating for the company in a research report on Friday, July 24th. Weiss Ratings cut shares of Infosys from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Tuesday, July 28th. Finally, Stifel Nicolaus set a $13.00 target price on shares of Infosys and gave the stock a "hold" rating in a report on Thursday, July 16th. Ten equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Reduce" and a consensus target price of $11.45.

Infosys Price Performance

NYSE INFY traded down $0.88 during trading on Friday, reaching $12.34. The company's stock had a trading volume of 45,953,855 shares, compared to its average volume of 21,868,784. The stock has a market capitalization of $49.99 billion, a PE ratio of 15.24, a P/E/G ratio of 3.08 and a beta of 0.88. The firm has a fifty day moving average of $11.45 and a 200 day moving average of $11.93. Infosys Ltd. has a one year low of $10.12 and a one year high of $30.00.

Infosys (NYSE:INFY - Get Free Report) last issued its quarterly earnings results on Friday, October 23rd. The technology company reported $0.20 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.21 by ($0.01). Infosys had a net margin of 16.38% and a return on equity of 33.91%. The business had revenue of $5.19 billion for the quarter, compared to the consensus estimate of $5.12 billion. Research analysts expect that Infosys Ltd. will post 0.81 earnings per share for the current fiscal year.

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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