Wipro (NYSE:WIT) Hits New 1-Year Low - Time to Sell?

Key Points

• Wipro's stock reached a new 52-week low at $2.61, closing at $2.63, while trading volume was over 7.9 million shares.
• Analysts have mixed ratings for Wipro, with Morgan Stanley upgrading its rating to "equal weight," yet the consensus remains at "Reduce."
• The company reported an EPS of $0.04 for the recent quarter, matching analysts’ expectations, but has announced a dividend cut, with a payout ratio of 62.5%.

Shares of Wipro Limited (NYSE:WIT - Get Free Report) reached a new 52-week low on Thursday . The company traded as low as $2.61 and last traded at $2.63, with a volume of 7913732 shares traded. The stock had previously closed at $2.63.

Analysts Set New Price Targets

Separately, Morgan Stanley upgraded Wipro from an "underweight" rating to an "equal weight" rating in a report on Friday, June 20th. Three analysts have rated the stock with a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Reduce".

Wipro Stock Performance

The business has a 50-day moving average price of $2.75 and a 200 day moving average price of $2.88. The stock has a market capitalization of $27.48 billion, a P/E ratio of 16.94 and a beta of 1.00.

Wipro (NYSE:WIT - Get Free Report) last issued its quarterly earnings results on Thursday, July 17th. The information technology services provider reported $0.04 EPS for the quarter, hitting analysts' consensus estimates of $0.04. Wipro had a return on equity of 15.94% and a net margin of 15.07%.The firm had revenue of $2.58 billion for the quarter, compared to analysts' expectations of $219.23 billion. As a group, research analysts forecast that Wipro Limited will post 0.14 earnings per share for the current fiscal year.

Wipro Cuts Dividend

The business also recently declared a dividend, which was paid on Monday, August 18th. Stockholders of record on Monday, July 28th were given a $0.057 dividend. This represents a dividend yield of 409.9%. The ex-dividend date of this dividend was Monday, July 28th. Wipro's payout ratio is currently 62.50%.

Hedge Funds Weigh In On Wipro

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. State Street Corp lifted its position in Wipro by 3.4% in the 2nd quarter. State Street Corp now owns 22,803,389 shares of the information technology services provider's stock valued at $68,866,000 after acquiring an additional 746,088 shares in the last quarter. Acadian Asset Management LLC lifted its position in Wipro by 4.1% in the 2nd quarter. Acadian Asset Management LLC now owns 21,841,995 shares of the information technology services provider's stock valued at $65,948,000 after acquiring an additional 864,481 shares in the last quarter. Goldman Sachs Group Inc. lifted its position in Wipro by 22.0% in the 1st quarter. Goldman Sachs Group Inc. now owns 10,354,002 shares of the information technology services provider's stock valued at $31,683,000 after acquiring an additional 1,864,943 shares in the last quarter. BNP Paribas Financial Markets lifted its position in Wipro by 17.3% in the 2nd quarter. BNP Paribas Financial Markets now owns 9,965,693 shares of the information technology services provider's stock valued at $30,096,000 after acquiring an additional 1,466,462 shares in the last quarter. Finally, Bank of America Corp DE lifted its position in Wipro by 298.9% in the 2nd quarter. Bank of America Corp DE now owns 7,690,677 shares of the information technology services provider's stock valued at $23,226,000 after acquiring an additional 5,762,771 shares in the last quarter. 2.36% of the stock is owned by institutional investors.

About Wipro

Wipro Limited operates as an information technology (IT), consulting, and business process services company worldwide. It operates through IT Services and IT Products segments. The IT Services segment offers IT and IT-enabled services, including digital strategy advisory, customer-centric design, technology and IT consulting, custom application design, development, re-engineering and maintenance, systems integration, package implementation, cloud and infrastructure, business process, cloud, mobility and analytics, research and development, and hardware and software design services to enterprises.

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