Wipro (NYSE:WIT) Sets New 12-Month Low - Here's Why

Key Points

• Wipro shares hit a new 52-week low, falling to $1.6450 during Thursday trading from a prior close of $1.69. The stock remains below its 50-day and 200-day moving averages.
• Analyst sentiment is sharply negative: CLSA and JPMorgan downgraded the stock, with JPMorgan cutting its price target to $1.70. Wipro has an overall “Strong Sell” consensus rating from analysts.
• Wipro’s latest quarterly results were mixed, with earnings per share matching estimates at $0.03 while revenue of $2.58 billion fell slightly short of expectations. Institutional investors own only 2.36% of the company, although several funds recently increased their holdings.

Wipro Limited (NYSE:WIT - Get Free Report) shares reached a new 52-week low during mid-day trading on Thursday . The stock traded as low as $1.6450 and last traded at $1.6550, with a volume of 1961638 shares trading hands. The stock had previously closed at $1.69.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on WIT shares. CLSA cut shares of Wipro from a "hold" rating to an "underperform" rating in a report on Wednesday, August 19th. Weiss Ratings raised shares of Wipro from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Tuesday, July 28th. Finally, JPMorgan Chase & Co. downgraded shares of 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 research note on Wednesday, June 24th. One research analyst has rated the stock with a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Strong Sell" and a consensus price target of $1.70.

Wipro Price Performance

The firm has a market cap of $16.27 billion, a price-to-earnings ratio of 12.65, a P/E/G ratio of 3.86 and a beta of 0.95. The firm has a fifty day simple moving average of $1.85 and a two-hundred day simple moving average of $2.02.

Wipro (NYSE:WIT - Get Free Report) last announced its quarterly earnings data on Friday, July 17th. The information technology services provider reported $0.03 EPS for the quarter, meeting the consensus estimate of $0.03. The firm had revenue of $2.58 billion during the quarter, compared to analyst estimates of $2.60 billion. Wipro had a net margin of 13.93% and a return on equity of 15.40%. Equities analysts anticipate that Wipro Limited will post 0.14 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Wipro

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. First Trust Advisors LP increased its holdings 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 valued at $39,341,000 after purchasing an additional 3,206,153 shares during the period. BNP Paribas Financial Markets lifted its holdings in shares of Wipro by 9.2% during the fourth quarter. BNP Paribas Financial Markets now owns 11,013,407 shares of the information technology services provider's stock worth $31,278,000 after purchasing an additional 925,706 shares during the period. Norges Bank purchased a new stake in Wipro in the fourth quarter valued at approximately $22,036,000. B. Metzler seel. Sohn & Co. AG increased its holdings in Wipro by 5.9% in the 2nd quarter. B. Metzler seel. Sohn & Co. AG now owns 2,314,134 shares of the information technology services provider's stock worth $5,207,000 after buying an additional 128,854 shares during the period. Finally, Dimensional Fund Advisors LP increased its holdings in Wipro by 4.6% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,311,642 shares of the information technology services provider's stock worth $4,901,000 after buying an additional 100,784 shares during the period. Hedge funds and other institutional investors own 2.36% of the company's stock.

About Wipro

Wipro Limited NYSE: WIT is a global information technology, consulting and business process services company. It helps organizations modernize their technology environments, improve operational efficiency and develop digital capabilities through consulting, systems integration, application services and managed services.

Its offerings include cloud computing, cybersecurity, data and analytics, artificial intelligence, digital engineering, enterprise applications, infrastructure management and business process services.

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