Infosys (NYSE:INFY) Stock Jumps 6.1% - Time to Buy?

Key Points

• Infosys shares rose 6.1% to roughly $11.50, although trading volume was far below the stock’s average daily level.
• Analyst sentiment remains cautious: ten analysts rate the stock Hold and one rates it Sell, producing a consensus “Reduce” rating and a price target of $11.45.
• The company’s latest quarterly results fell short of expectations, with EPS of $0.20 versus $0.21 expected and revenue of $4.99 billion versus estimates of $5.08 billion; institutional investors own 16.2% of the stock.

Infosys Ltd. (NYSE:INFY - Get Free Report) shares traded up 6.1% on Tuesday. The company traded as high as $11.47 and last traded at $11.4950. Approximately 2,453,345 shares traded hands during mid-day trading, a decline of 87% from the average daily volume of 18,637,455 shares. The stock had previously closed at $10.83.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on the stock. HSBC set a $11.47 price objective on shares of Infosys and gave the stock a "hold" rating in a research report on Friday, July 24th. The Goldman Sachs Group reissued a "neutral" rating and issued a $10.40 target price on shares of Infosys in a report on Thursday, October 1st. Weiss Ratings lowered Infosys from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday, July 28th. Jefferies Financial Group restated a "hold" rating on shares of Infosys in a research note on Monday, August 31st. Finally, TD Cowen restated a "hold" rating and issued a $9.00 price target (down from $10.00) on shares of Infosys in a research note on Friday, July 24th. Ten investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Infosys presently has a consensus rating of "Reduce" and a consensus price target of $11.45.

Infosys Stock Performance

The firm has a market cap of $46.59 billion, a PE ratio of 14.19, a P/E/G ratio of 2.50 and a beta of 0.88. The firm's 50-day moving average price is $11.48 and its two-hundred day moving average price is $11.99.

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

Hedge Funds Weigh In On Infosys

Large investors have recently bought and sold shares of the stock. Farther Finance Advisors LLC grew its holdings in shares of Infosys by 35.5% during the third quarter. Farther Finance Advisors LLC now owns 20,655 shares of the technology company's stock worth $222,000 after purchasing an additional 5,408 shares during the last quarter. Confluence Investment Management LLC lifted its holdings in shares of Infosys by 5.5% in the 3rd quarter. Confluence Investment Management LLC now owns 18,601 shares of the technology company's stock valued at $200,000 after purchasing an additional 965 shares during the last quarter. QRG Capital Management Inc. lifted its holdings in shares of Infosys by 4.5% in the 2nd quarter. QRG Capital Management Inc. now owns 30,832 shares of the technology company's stock valued at $323,000 after purchasing an additional 1,335 shares during the last quarter. Sequoia Financial Advisors LLC boosted its position in shares of Infosys by 32.8% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 109,291 shares of the technology company's stock valued at $1,146,000 after purchasing an additional 26,984 shares during the period. Finally, Tidal Investments LLC boosted its position in shares of Infosys by 106.3% in the 2nd quarter. Tidal Investments LLC now owns 125,298 shares of the technology company's stock valued at $1,314,000 after purchasing an additional 64,563 shares during the period. Institutional investors and hedge funds 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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