Stock Traders Purchase High Volume of Infosys Call Options (NYSE:INFY)

Key Points

• Infosys call-option activity surged: Investors purchased 123,237 call options, roughly 1,367% above the typical daily volume of 8,399, signaling unusually strong options-market interest.
• Infosys shares rose $0.28 to $12.62, but the company recently missed quarterly earnings and revenue expectations, reporting $0.20 EPS and $4.99 billion in revenue.
• Analyst sentiment remains cautious: The stock has a consensus “Reduce” rating and an average price target of $11.63, below its recent trading price, while institutional investors own 16.2% of the shares.

Infosys Ltd. (NYSE:INFY - Get Free Report) saw some unusual options trading on Wednesday. Investors bought 123,237 call options on the stock. This represents an increase of approximately 1,367% compared to the typical daily volume of 8,399 call options.

Hedge Funds Weigh In On Infosys

Several institutional investors have recently bought and sold shares of the business. Oldfield Partners LLP raised its position in Infosys by 41.3% in the 2nd quarter. Oldfield Partners LLP now owns 53,193 shares of the technology company's stock worth $558,000 after purchasing an additional 15,560 shares during the period. E. Ohman J or Asset Management AB boosted its holdings in shares of Infosys by 3.7% in the 2nd quarter. E. Ohman J or Asset Management AB now owns 251,900 shares of the technology company's stock valued at $2,642,000 after buying an additional 9,000 shares in the last quarter. Foster Group Inc. purchased a new position in Infosys during the 2nd quarter worth $127,000. Confluence Investment Management LLC grew its position in Infosys by 19.1% during the 2nd quarter. Confluence Investment Management LLC now owns 17,636 shares of the technology company's stock worth $185,000 after purchasing an additional 2,826 shares during the last quarter. Finally, Glenmede Trust Co. NA grew its stake in Infosys by 17.8% during the 1st quarter. Glenmede Trust Co. NA now owns 21,055 shares of the technology company's stock valued at $284,000 after purchasing an additional 3,179 shares during the last quarter. Institutional investors own 16.20% of the company's stock.

Infosys Stock Performance

Shares of NYSE:INFY traded up $0.28 during trading on Wednesday, reaching $12.62. 30,088,326 shares of the stock traded hands, compared to its average volume of 19,211,990. Infosys has a 52-week low of $10.30 and a 52-week high of $30.00. The stock has a 50-day moving average of $11.59 and a two-hundred day moving average of $13.55. The stock has a market cap of $51.09 billion, a P/E ratio of 15.59, a price-to-earnings-growth ratio of 2.73 and a beta of 0.90.

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

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on INFY. BMO Capital Markets reaffirmed a "market perform" rating and issued a $12.00 target price (down from $13.00) on shares of Infosys in a report on Friday, July 24th. Stifel Nicolaus set a $13.00 price objective on shares of Infosys and gave the stock a "hold" rating in a research report on Thursday, July 16th. TD Cowen restated a "hold" rating and issued a $9.00 target price (down from $10.00) on shares of Infosys in a research report on Friday, July 24th. Wells Fargo & Company set a $11.00 price objective on Infosys and gave the company an "equal weight" rating in a research note on Friday, June 26th. Finally, Susquehanna cut their price objective on Infosys from $12.00 to $11.00 and set a "neutral" rating on the stock in a research report on Friday, July 24th. Eight investment analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Reduce" and a consensus price target of $11.63.

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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