Infosys Target of Unusually Large Options Trading (NYSE:INFY)

Key Points

• Infosys saw unusually heavy put-option activity: Traders purchased 12,537 put options, 49% above the typical volume of 8,393, signaling increased bearish or hedging activity.
• Shares fell 0.5% to $10.88, near the company’s 52-week low, after quarterly EPS of $0.20 and revenue of $4.99 billion both came in below analyst expectations.
• Analyst sentiment remains cautious, with nine “Hold” ratings and one “Sell” rating; the consensus rating is “Reduce,” with an average price target of $11.59.

Infosys Ltd. (NYSE:INFY - Get Free Report) saw some unusual options trading activity on Thursday. Stock traders bought 12,537 put options on the company. This represents an increase of 49% compared to the typical volume of 8,393 put options.

Infosys Trading Down 0.5%

Shares of INFY stock traded down $0.06 during mid-day trading on Thursday, reaching $10.88. The stock had a trading volume of 4,947,604 shares, compared to its average volume of 18,732,840. Infosys has a 52-week low of $10.30 and a 52-week high of $30.00. The stock's 50-day moving average price is $11.73 and its two-hundred day moving average price is $12.47. The firm has a market capitalization of $44.04 billion, a PE ratio of 13.41, a price-to-earnings-growth ratio of 2.59 and a beta of 0.87.

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

Institutional Investors Weigh In On Infosys

A number of institutional investors have recently modified their holdings of INFY. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position 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 valued at $1,153,000 after acquiring an additional 3,804 shares in the last quarter. NewEdge Advisors LLC boosted its stake in shares of Infosys by 79.9% during the 1st quarter. NewEdge Advisors LLC now owns 54,978 shares of the technology company's stock worth $1,003,000 after acquiring an additional 24,426 shares during the last quarter. Dynamic Technology Lab Private Ltd bought a new stake in Infosys during the first quarter valued at about $239,000. Trinity Street Asset Management LLP grew its stake in shares of Infosys by 45.5% during the 1st quarter. Trinity Street Asset Management LLP now owns 14,938,546 shares of the technology company's stock valued at $201,820,000 after acquiring an additional 4,674,742 shares during the period. Finally, Deltec Asset Management LLC increased its stake in shares of Infosys by 13.6% in the first 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 in the last quarter. 16.20% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of analysts recently weighed in on INFY shares. Stifel Nicolaus set a $13.00 target price on shares of Infosys and gave the stock a "hold" rating in a report on Thursday, July 16th. Jefferies Financial Group restated a "hold" rating on shares of Infosys in a research report on Monday, August 31st. JPMorgan Chase & Co. reaffirmed a "neutral" rating and issued a $10.90 price target (down from $12.70) on shares of Infosys in a report on Friday, July 24th. TD Cowen reiterated 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. Finally, Wells Fargo & Company set a $11.00 price objective on Infosys and gave the company an "equal weight" rating in a research note on Friday, June 26th. Nine research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Reduce" and a consensus target price of $11.59.

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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