Infosys Ltd. $INFY Stock Sold by Sustainable Growth Advisers LP

Key Points

• Sustainable Growth Advisers LP reduced its Infosys stake by 75.2% in the third quarter, selling 662,904 shares and retaining 218,676 shares valued at approximately $2.35 million.
• Other institutional investors increased their exposure, including Trinity Street Asset Management, Lazard Asset Management, and Hudson Edge Investment Partners; institutions and hedge funds collectively own 16.2% of Infosys.
• Infosys shares rose 5.8% to $12.14, but analyst sentiment remains cautious: the consensus rating is “Reduce,” with a $11.45 price target, while the company recently missed quarterly EPS and revenue estimates.

Sustainable Growth Advisers LP cut its position in Infosys Ltd. (NYSE:INFY - Free Report) by 75.2% in the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 218,676 shares of the technology company's stock after selling 662,904 shares during the quarter. Sustainable Growth Advisers LP's holdings in Infosys were worth $2,353,000 as of its most recent SEC filing.

Other hedge funds have also recently made changes to their positions in the company. Trinity Street Asset Management LLP grew its holdings in shares of Infosys by 45.5% during the first quarter. Trinity Street Asset Management LLP now owns 14,938,546 shares of the technology company's stock worth $201,820,000 after purchasing an additional 4,674,742 shares during the last quarter. Lazard Asset Management LLC raised its holdings in Infosys by 17.0% in the 1st quarter. Lazard Asset Management LLC now owns 26,776,494 shares of the technology company's stock valued at $361,750,000 after buying an additional 3,893,801 shares during the last quarter. Public Employees Retirement System of Ohio bought a new position in Infosys in the 2nd quarter valued at approximately $23,235,000. RWC Asset Advisors US LLC acquired a new stake in Infosys during the 2nd quarter worth approximately $21,758,000. Finally, Hudson Edge Investment Partners Inc. boosted its position in Infosys by 56.5% during the 1st quarter. Hudson Edge Investment Partners Inc. now owns 4,452,990 shares of the technology company's stock worth $60,160,000 after buying an additional 1,607,300 shares during the period. 16.20% of the stock is owned by institutional investors and hedge funds.

Infosys Trading Up 5.8%

Shares of INFY stock opened at $12.14 on Friday. Infosys Ltd. has a 1-year low of $10.12 and a 1-year high of $30.00. The stock has a market cap of $49.18 billion, a price-to-earnings ratio of 14.99, a PEG ratio of 2.68 and a beta of 0.88. The stock has a 50-day moving average of $11.44 and a 200-day moving average of $11.96.

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

Analysts Set New Price Targets

Several brokerages have issued reports on INFY. Weiss Ratings cut shares of Infosys from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Tuesday, July 28th. The Goldman Sachs Group reaffirmed a "neutral" rating and set a $10.40 price target on shares of Infosys in a research note on Thursday, October 1st. Wells Fargo & Company set a $11.00 price target on shares of Infosys and gave the stock an "equal weight" rating in a report on Friday, June 26th. Susquehanna reduced their price objective on shares of Infosys from $12.00 to $11.00 and set a "neutral" rating on the stock in a research note on Friday, July 24th. Finally, Jefferies Financial Group reissued a "hold" rating on shares of Infosys in a research note on Monday, August 31st. Ten research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Reduce" and a consensus price target of $11.45.

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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