Infosys Ltd. $INFY Stock: Mondrian Investment Partners LTD Lowers Stake

Key Points

• Mondrian Investment Partners cut its Infosys stake by 7.5% in the third quarter, selling 363,558 shares and retaining 4.5 million shares worth approximately $48.4 million. Other institutions, including Lazard, Arrowstreet, and Royal Bank of Canada, increased their holdings.
• Infosys reported quarterly EPS of $0.20, below the $0.21 consensus estimate, while revenue of roughly $5.19 billion exceeded expectations. The company also lowered its constant-currency revenue-growth guidance to 1%-2%.
• AI revenue rose 29% sequentially and large-deal value reached $5.2 billion, but analyst sentiment remains cautious: the stock carries an average “Reduce” rating and an average price target of $11.45.

Mondrian Investment Partners LTD reduced its position in shares of Infosys Ltd. (NYSE:INFY - Free Report) by 7.5% in the third quarter, according to its most recent filing with the SEC. The fund owned 4,499,689 shares of the technology company's stock after selling 363,558 shares during the quarter. Mondrian Investment Partners LTD owned about 0.11% of Infosys worth $48,417,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently modified their holdings of the business. Bank of America Corp DE raised its stake in Infosys by 7.4% during the first quarter. Bank of America Corp DE now owns 6,790,666 shares of the technology company's stock valued at $91,742,000 after purchasing an additional 469,843 shares in the last quarter. Lazard Asset Management LLC grew its stake in shares of Infosys by 17.0% in the 1st quarter. Lazard Asset Management LLC now owns 26,776,494 shares of the technology company's stock worth $361,750,000 after buying an additional 3,893,801 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its stake in shares of Infosys by 8.7% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 6,490,358 shares of the technology company's stock worth $87,685,000 after buying an additional 521,169 shares in the last quarter. Weiss Asset Management LP purchased a new position in shares of Infosys in the 1st quarter worth $10,708,000. Finally, Royal Bank of Canada increased its holdings in shares of Infosys by 31.9% in the 1st quarter. Royal Bank of Canada now owns 1,156,539 shares of the technology company's stock worth $15,625,000 after buying an additional 279,954 shares during the last quarter. 16.20% of the stock is owned by hedge funds and other institutional investors.

Infosys Stock Down 6.6%

Shares of INFY opened at $12.34 on Friday. The company has a market cap of $49.99 billion, a PE ratio of 15.24, a P/E/G ratio of 2.88 and a beta of 0.88. The business has a fifty day moving average of $11.45 and a 200 day moving average of $11.93. Infosys Ltd. has a 52-week low of $10.12 and a 52-week high of $30.00.

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

More Infosys News

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 brokerages have recently issued reports on INFY. The Goldman Sachs Group restated a "neutral" rating and set a $10.40 target price on shares of Infosys in a research report on Thursday, October 1st. Stifel Nicolaus set a $13.00 price target on shares of Infosys and gave the company a "hold" rating in a report on Thursday, July 16th. Weiss Ratings lowered Infosys from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Tuesday, July 28th. TD Cowen reissued a "hold" rating and set a $9.00 price objective (down from $10.00) on shares of Infosys in a research note on Friday, July 24th. Finally, Susquehanna reduced their price objective on Infosys from $12.00 to $11.00 and set a "neutral" rating on the stock in a research note on Friday, July 24th. Ten equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Reduce" and an average target price of $11.45.

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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