Infosys (NYSE:INFY) Hits New 52-Week Low on Disappointing Earnings

Key Points

• Infosys shares hit a new 52-week low after the company reported weaker-than-expected quarterly earnings, with the stock falling as low as $10.30 and ending down about 3.9% on the day.
• The company posted EPS of $0.20, missing analyst estimates by $0.01, adding to investor concerns despite its solid return on equity and net margin.
• Wall Street sentiment remains cautious, with the stock carrying an average Hold rating and an average price target of $12.50, while several analysts recently lowered their targets.

Infosys Ltd. (NYSE:INFY - Get Free Report) hit a new 52-week low on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $10.30 and last traded at $10.4390, with a volume of 6364217 shares. The stock had previously closed at $10.93.

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 32.64% and a net margin of 16.44%.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on the stock. Susquehanna reduced their price target on shares of Infosys from $14.00 to $12.00 and set a "neutral" rating for the company in a research report on Friday, July 10th. JPMorgan Chase & Co. dropped their price objective on shares of Infosys from $16.80 to $12.70 and set an "overweight" rating on the stock in a report on Wednesday, June 24th. Wells Fargo & Company set a $11.00 price objective on shares of Infosys and gave the stock an "equal weight" rating in a report on Friday, June 26th. Stifel Nicolaus set a $13.00 target price on shares of Infosys and gave the company a "hold" rating in a research report on Thursday, July 16th. Finally, TD Cowen reduced their target price on shares of Infosys from $13.00 to $10.00 and set a "hold" rating for the company in a report on Thursday, July 9th. One equities research analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock has an average rating of "Hold" and an average target price of $12.50.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. V Square Quantitative Management LLC bought a new stake in Infosys during the 1st quarter worth approximately $97,000. Foster Group Inc. purchased a new position in Infosys during the second quarter valued at approximately $127,000. State of Wyoming bought a new position in shares of Infosys in the first quarter worth approximately $134,000. Aureus Asset Management LLC bought a new position in shares of Infosys in the first quarter worth approximately $142,000. Finally, Able Wealth Management LLC purchased a new stake in shares of Infosys in the first quarter worth $163,000. 16.20% of the stock is currently owned by institutional investors.

Infosys Stock Down 3.9%

The stock has a market capitalization of $42.51 billion, a PE ratio of 13.06, a PEG ratio of 1.46 and a beta of 0.90. The stock's 50 day moving average price is $11.66 and its 200-day moving average price is $13.78.

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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