Wipro (NYSE:WIT) Shares Gap Up - Here's Why

Key Points

• Wipro shares opened higher, rising from a prior close of $1.80 to $1.87 before last trading at $1.83 on volume of 711,768 shares.
• Analyst sentiment remains bearish: CLSA and JPMorgan downgraded the stock, while MarketBeat data shows a consensus rating of “Strong Sell” and a $1.70 price target.
• Wipro’s latest quarterly results matched EPS expectations at $0.03 but slightly missed revenue forecasts, reporting $2.58 billion versus the anticipated $2.60 billion; institutional investors own 2.36% of the company.

Wipro Limited (NYSE:WIT - Get Free Report) shares gapped up before the market opened on Friday . The stock had previously closed at $1.80, but opened at $1.87. Wipro shares last traded at $1.83, with a volume of 711,768 shares trading hands.

Analyst Upgrades and Downgrades

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

Wipro Trading Up 2.2%

The business's fifty day moving average price is $1.96 and its two-hundred day moving average price is $2.09. The firm has a market cap of $18.20 billion, a P/E ratio of 14.15, a P/E/G ratio of 4.18 and a beta of 0.98.

Wipro (NYSE:WIT - Get Free Report) last issued its quarterly earnings data 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 during the quarter, compared to analysts' expectations of $2.60 billion. Wipro had a net margin of 13.93% and a return on equity of 15.40%. Research analysts predict that Wipro Limited will post 0.14 EPS for the current fiscal year.

Institutional Trading of Wipro

Several large investors have recently made changes to their positions in WIT. Royal Bank of Canada raised its stake in shares of Wipro by 19.8% in the 1st quarter. Royal Bank of Canada now owns 120,431 shares of the information technology services provider's stock valued at $369,000 after acquiring an additional 19,901 shares in the last quarter. NewEdge Advisors LLC lifted its holdings in Wipro by 87.0% in the 1st quarter. NewEdge Advisors LLC now owns 270,702 shares of the information technology services provider's stock worth $828,000 after purchasing an additional 125,967 shares during the last quarter. Goldman Sachs Group Inc. boosted its position in Wipro by 22.0% during the first quarter. Goldman Sachs Group Inc. now owns 10,354,002 shares of the information technology services provider's stock worth $31,683,000 after purchasing an additional 1,864,943 shares during the period. Jane Street Group LLC boosted its position in Wipro by 184.9% during the first quarter. Jane Street Group LLC now owns 224,438 shares of the information technology services provider's stock worth $687,000 after purchasing an additional 145,658 shares during the period. Finally, Geode Capital Management LLC grew its holdings in Wipro by 14.3% during the second quarter. Geode Capital Management LLC now owns 107,021 shares of the information technology services provider's stock valued at $323,000 after purchasing an additional 13,363 shares during the last quarter. Institutional investors own 2.36% of the company's stock.

About Wipro

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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