Wipro (NYSE:WIT) Reaches New 52-Week Low - Here's What Happened

Key Points

• Wipro shares hit a new 52-week low, falling as much as 4.1% to $1.73 before last trading at $1.7350, compared with the prior close of $1.81.
• Analyst sentiment is strongly negative: JPMorgan downgraded the stock to “underweight,” CLSA cut it to “underperform,” and MarketBeat reports a consensus rating of “Strong Sell” with an average price target of $1.70.
• Wipro’s latest quarterly results met EPS expectations at $0.03 but slightly missed revenue estimates, reporting $2.58 billion versus the $2.60 billion consensus. Institutional investors own only 2.36% of the stock, although several major funds recently increased their positions.

Wipro Limited (NYSE:WIT - Get Free Report) hit a new 52-week low on Tuesday . The company traded as low as $1.73 and last traded at $1.7350, with a volume of 470703 shares trading hands. The stock had previously closed at $1.81.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on WIT. JPMorgan Chase & Co. cut Wipro from a "neutral" rating to an "underweight" rating and lowered their target price for the company from $2.20 to $1.70 in a report on Wednesday, June 24th. Weiss Ratings raised shares of Wipro from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Tuesday, July 28th. Finally, CLSA downgraded shares of Wipro from a "hold" rating to an "underperform" rating in a research note on Wednesday, August 19th. One analyst has rated the stock with a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Strong Sell" and an average target price of $1.70.

Wipro Trading Down 4.1%

The firm has a market cap of $17.16 billion, a price-to-earnings ratio of 13.35, a PEG ratio of 4.13 and a beta of 0.95. The firm's fifty day moving average price is $1.90 and its 200-day moving average price is $2.07.

Wipro (NYSE:WIT - Get Free Report) last released its quarterly earnings results on Friday, July 17th. The information technology services provider reported $0.03 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.03. The firm had revenue of $2.58 billion for the quarter, compared to the consensus estimate of $2.60 billion. Wipro had a return on equity of 15.40% and a net margin of 13.93%. On average, sell-side analysts expect that Wipro Limited will post 0.14 earnings per share for the current year.

Institutional Trading of Wipro

Institutional investors and hedge funds have recently made changes to their positions in the stock. Morgan Stanley lifted its holdings in Wipro by 65.0% in the 4th quarter. Morgan Stanley now owns 48,531,368 shares of the information technology services provider's stock valued at $137,829,000 after purchasing an additional 19,114,904 shares in the last quarter. State Street Corp lifted its position in Wipro by 0.8% during the fourth quarter. State Street Corp now owns 23,861,012 shares of the information technology services provider's stock valued at $67,765,000 after buying an additional 179,034 shares in the last quarter. Millennium Management LLC lifted its holdings in shares of Wipro by 25.9% during the 3rd quarter. Millennium Management LLC now owns 21,305,291 shares of the information technology services provider's stock valued at $56,033,000 after acquiring an additional 4,382,854 shares in the last quarter. First Trust Advisors LP boosted its position in shares of Wipro by 20.9% in the first quarter. First Trust Advisors LP now owns 18,557,277 shares of the information technology services provider's stock worth $39,341,000 after buying an additional 3,206,153 shares during the period. Finally, Defiance ETFs LLC purchased a new position in Wipro in the 4th quarter worth approximately $39,525,000. 2.36% of the stock is currently owned by hedge funds and other institutional investors.

Wipro Company Profile

Wipro Limited NYSE: WIT is an Indian multinational corporation that provides information technology, consulting and business process services. Headquartered in Bengaluru, India, the company traces its origins to 1945 when it was founded as Western India Vegetable Products and later diversified into technology and IT services. Today Wipro positions itself as a provider of enterprise IT solutions and digital transformation services for large and mid-sized organizations across multiple industries.

The company's service portfolio includes application development and maintenance, cloud and infrastructure services, data analytics and AI, cybersecurity, digital consulting, product engineering and research and development, as well as business process services.

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