Infosys (NYSE:INFY) Shares Cross Below 50 Day Moving Average - Here's Why

Key Points

• Infosys shares fell below their 50-day moving average, trading as low as $10.44 versus the $11.65 average, with more than 14.1 million shares changing hands.
• Analyst sentiment is cautious: the consensus rating is “Reduce” with an average price target of $11.59, while several firms recently lowered ratings or target prices.
• Infosys missed quarterly expectations, reporting $0.20 in earnings per share versus $0.21 expected and revenue of $4.99 billion versus the $5.08 billion consensus estimate.

Infosys Ltd. (NYSE:INFY - Get Free Report) passed below its 50 day moving average during trading on Tuesday. The stock has a 50 day moving average of $11.65 and traded as low as $10.44. Infosys shares last traded at $10.6350, with a volume of 14,134,803 shares changing hands.

Analyst Upgrades and Downgrades

A number of brokerages have commented on INFY. CLSA cut Infosys from an "outperform" rating to a "hold" rating in a research report on Wednesday, August 19th. Wells Fargo & Company set a $11.00 price objective on Infosys and gave the company an "equal weight" rating in a research report on Friday, June 26th. TD Cowen reiterated a "hold" rating and set a $9.00 price objective (down from $10.00) on shares of Infosys in a research note 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. Finally, JPMorgan Chase & Co. restated a "neutral" rating and set a $10.90 target price (down from $12.70) on shares of Infosys in a research note on Friday, July 24th. Nine analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Infosys presently has a consensus rating of "Reduce" and an average target price of $11.59.

Infosys Stock Up 1.1%

The firm's fifty day moving average price is $11.65 and its 200 day moving average price is $12.14. The stock has a market cap of $43.07 billion, a PE ratio of 13.13, a P/E/G ratio of 2.45 and a beta of 0.87.

Infosys (NYSE:INFY - Get Free Report) last posted its earnings results on Thursday, July 23rd. The technology company reported $0.20 earnings per share 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 analysts' expectations of $5.08 billion. Infosys had a net margin of 16.38% and a return on equity of 33.91%. As a group, analysts anticipate that Infosys Ltd. will post 0.81 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in INFY. QRG Capital Management Inc. lifted its position in shares of Infosys by 4.5% in the second quarter. QRG Capital Management Inc. now owns 30,832 shares of the technology company's stock worth $323,000 after buying an additional 1,335 shares in the last quarter. Sequoia Financial Advisors LLC grew its holdings in Infosys by 32.8% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 109,291 shares of the technology company's stock valued at $1,146,000 after buying an additional 26,984 shares in the last quarter. Tidal Investments LLC grew its holdings in Infosys by 106.3% during the 2nd quarter. Tidal Investments LLC now owns 125,298 shares of the technology company's stock valued at $1,314,000 after buying an additional 64,563 shares in the last quarter. WINTON GROUP Ltd bought a new stake in Infosys in the 2nd quarter worth approximately $1,907,000. Finally, Engineers Gate Manager LP increased its stake in Infosys by 98.7% in the 2nd quarter. Engineers Gate Manager LP now owns 381,772 shares of the technology company's stock worth $4,005,000 after acquiring an additional 189,631 shares during the last quarter. Hedge funds and other institutional investors own 16.20% of the company's stock.

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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