Infosys (NYSE:INFY) Shares Gap Down - What's Next?

Key Points

• Infosys shares gapped down before Tuesday’s session, opening at $10.90 after closing at $11.50 and last trading around $11.17, indicating a roughly 3.1% drop.
• Several analysts recently cut their price targets on Infosys, with the consensus rating remaining Hold and the average target price at $12.75.
• The company remains fundamentally profitable, with its latest quarterly results showing $0.23 EPS, $5.04 billion in revenue, and analysts expecting 0.83 EPS for the current year.

Infosys Ltd. (NYSE:INFY - Get Free Report)'s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $11.50, but opened at $10.90. Infosys shares last traded at $11.1650, with a volume of 3,179,237 shares changing hands.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on INFY shares. TD Cowen dropped their price objective on shares of Infosys from $13.00 to $10.00 and set a "hold" rating on the stock in a research note on Thursday, July 9th. JPMorgan Chase & Co. reduced their price objective on shares of Infosys from $16.80 to $12.70 and set an "overweight" rating for the company in a research note on Wednesday, June 24th. Susquehanna lowered their target price on Infosys from $14.00 to $12.00 and set a "neutral" rating for the company in a report on Friday. BMO Capital Markets lowered their target price on Infosys from $20.00 to $15.00 and set a "market perform" rating for the company in a report on Friday, April 24th. Finally, Stifel Nicolaus set a $15.00 target price on Infosys in a research report on Thursday, April 23rd. One analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $12.75.

Infosys Stock Down 3.1%

The company has a market capitalization of $45.10 billion, a price-to-earnings ratio of 13.93, a P/E/G ratio of 1.42 and a beta of 0.90. The company's 50 day simple moving average is $11.82 and its two-hundred day simple moving average is $14.13.

Infosys (NYSE:INFY - Get Free Report) last issued its quarterly earnings results on Wednesday, April 1st. The technology company reported $0.23 earnings per share (EPS) for the quarter. Infosys had a return on equity of 32.64% and a net margin of 16.44%.The business had revenue of $5.04 billion for the quarter. Analysts anticipate that Infosys Ltd. will post 0.83 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of Infosys by 6.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 63,155 shares of the technology company's stock worth $1,153,000 after acquiring an additional 3,804 shares during the last quarter. NewEdge Advisors LLC raised its position in shares of Infosys by 79.9% in the 1st quarter. NewEdge Advisors LLC now owns 54,978 shares of the technology company's stock valued at $1,003,000 after purchasing an additional 24,426 shares during the last quarter. Dynamic Technology Lab Private Ltd purchased a new position in shares of Infosys in the 1st quarter valued at approximately $239,000. Trinity Street Asset Management LLP boosted its stake in Infosys by 45.5% in the 1st 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 in the last quarter. Finally, Deltec Asset Management LLC grew its position in Infosys by 13.6% during the 1st quarter. Deltec Asset Management LLC now owns 58,500 shares of the technology company's stock worth $790,000 after purchasing an additional 7,000 shares during the last quarter. 16.20% of the stock is owned by institutional investors and hedge funds.

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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