Infosys Ltd. (NYSE:INFY) Given Consensus Rating of "Reduce" by Brokerages

Key Points

• Analysts hold a negative-to-neutral view of Infosys: Ten brokerages give the stock a consensus “Reduce” rating, with two sells and eight holds. The average 12-month price target is $11.63.
• Several firms recently cut their price targets, including Susquehanna to $11, TD Cowen to $9, and Weiss Ratings, which downgraded the stock to sell.
• Infosys shares opened at $11.65 after declining 3.6%, while the company’s latest quarterly results missed estimates for both earnings and revenue. Institutional investors own 16.2% of the stock.

Shares of Infosys Ltd. (NYSE:INFY - Get Free Report) have been given an average rating of "Reduce" by the ten ratings firms that are covering the stock, Marketbeat Ratings reports. Two analysts have rated the stock with a sell recommendation and eight have assigned a hold recommendation to the company. The average 12 month target price among analysts that have covered the stock in the last year is $11.6311.

A number of brokerages recently issued reports on INFY. Susquehanna decreased their price objective on shares of Infosys from $12.00 to $11.00 and set a "neutral" rating for the company in a report on Friday, July 24th. Weiss Ratings lowered shares of Infosys from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday, July 28th. HSBC set a $11.47 target price on shares of Infosys and gave the stock a "hold" rating in a report on Friday, July 24th. Wells Fargo & Company set a $11.00 price target on shares of Infosys and gave the company an "equal weight" rating in a report on Friday, June 26th. Finally, TD Cowen restated a "hold" rating and issued a $9.00 price objective (down from $10.00) on shares of Infosys in a research report on Friday, July 24th.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Public Employees Retirement System of Ohio acquired a new position in Infosys in the second quarter valued at about $23,235,000. Laidlaw Wealth Management LLC acquired a new stake in shares of Infosys during the second quarter worth about $117,000. ABN AMRO Bank N.V. acquired a new stake in shares of Infosys during the second quarter worth about $168,000. Oldfield Partners LLP lifted its holdings in shares of Infosys by 41.3% during the 2nd quarter. Oldfield Partners LLP now owns 53,193 shares of the technology company's stock valued at $558,000 after purchasing an additional 15,560 shares in the last quarter. Finally, E. Ohman J or Asset Management AB lifted its holdings in shares of Infosys by 3.7% during the 2nd quarter. E. Ohman J or Asset Management AB now owns 251,900 shares of the technology company's stock valued at $2,642,000 after purchasing an additional 9,000 shares in the last quarter. 16.20% of the stock is owned by institutional investors and hedge funds.

Infosys Trading Down 3.6%

NYSE INFY opened at $11.65 on Tuesday. Infosys has a 12 month low of $10.30 and a 12 month high of $30.00. The stock has a 50-day simple moving average of $11.51 and a 200 day simple moving average of $13.00. The company has a market capitalization of $47.15 billion, a PE ratio of 14.38, a P/E/G ratio of 2.82 and a beta of 0.88.

Infosys (NYSE:INFY - Get Free Report) last posted its earnings results on Thursday, July 23rd. The technology company reported $0.20 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.21 by ($0.01). The company had revenue of $4.99 billion for 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%. As a group, sell-side analysts predict that Infosys 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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