Infosys (NYSE:INFY) Hits New 1-Year Low - What's Next?

Key Points

• Infosys shares fell to a new 52-week low of $10.15, trading around $10.32 and down 2.5%, below both the 50-day and 200-day moving averages.
• Analyst sentiment is cautious: the consensus rating is “Reduce”, based on ten Hold ratings and one Sell rating, with an average price target of $11.45.
• The company’s latest quarterly results missed expectations, reporting $0.20 in earnings per share versus $0.21 expected and revenue of $4.99 billion versus $5.08 billion forecast.

Infosys Ltd. (NYSE:INFY - Get Free Report) shares hit a new 52-week low during trading on Thursday. The company traded as low as $10.15 and last traded at $10.3220, with a volume of 8042659 shares traded. The stock had previously closed at $10.55.

Analyst Ratings Changes

Several equities research analysts have commented on the company. CLSA downgraded Infosys from an "outperform" rating to a "hold" rating in a report on Wednesday, August 19th. The Goldman Sachs Group reaffirmed a "neutral" rating and issued a $10.40 price target on shares of Infosys in a research report on Thursday, October 1st. HSBC set a $11.47 price objective on shares of Infosys and gave the company a "hold" rating in a research report on Friday, July 24th. Wells Fargo & Company set a $11.00 price objective on shares of Infosys and gave the company an "equal weight" rating in a research note on Friday, June 26th. Finally, Weiss Ratings downgraded shares of Infosys from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Tuesday, July 28th. Ten equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Reduce" and a consensus price target of $11.45.

Infosys Trading Down 2.5%

The firm has a fifty day moving average of $11.56 and a 200 day moving average of $12.04. The company has a market capitalization of $41.64 billion, a P/E ratio of 12.71, a P/E/G ratio of 2.46 and a beta of 0.88.

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

Institutional Investors Weigh In On Infosys

A number of hedge funds have recently added to or reduced their stakes in the stock. V Square Quantitative Management LLC purchased a new position in shares of Infosys in the 1st quarter worth $97,000. TD Waterhouse Canada Inc. lifted its holdings in Infosys by 14.2% in the second quarter. TD Waterhouse Canada Inc. now owns 9,090 shares of the technology company's stock valued at $97,000 after acquiring an additional 1,131 shares during the period. Concurrent Investment Advisors LLC bought a new position in Infosys in the second quarter valued at about $115,000. Laidlaw Wealth Management LLC purchased a new position in Infosys in the second quarter worth about $117,000. Finally, Angeles Wealth Management LLC purchased a new position in Infosys in the second quarter worth about $125,000. 16.20% of the stock is currently owned by hedge funds and other institutional investors.

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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