Wipro (NYSE:WIT) Hits New 52-Week Low - Should You Sell?

Key Points

• Wipro shares hit a new 52-week low, trading as low as $1.80 before closing near $1.83, underscoring continued weakness in the stock.
• Analysts remain cautious: JPMorgan cut Wipro to underweight and lowered its price target to $1.70, while the overall consensus rating is Reduce with a $1.70 target.
• Wipro’s latest earnings met EPS expectations at $0.04, but revenue of $2.59 billion missed estimates, adding to pressure on the stock despite solid margins.

Wipro Limited (NYSE:WIT - Get Free Report)'s stock price hit a new 52-week low on Thursday . The stock traded as low as $1.80 and last traded at $1.8250, with a volume of 236960 shares trading hands. The stock had previously closed at $1.83.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on the stock. Weiss Ratings raised shares of Wipro from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Monday, June 29th. JPMorgan Chase & Co. cut Wipro from a "neutral" rating to an "underweight" rating and cut their price target for the company from $2.20 to $1.70 in a research note on Wednesday, June 24th. Two analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Reduce" and a consensus target price of $1.70.

Wipro Stock Up 0.3%

The stock has a market capitalization of $19.22 billion, a PE ratio of 13.11, a PEG ratio of 3.98 and a beta of 0.97. The business's 50-day moving average is $2.09 and its two-hundred day moving average is $2.31.

Wipro (NYSE:WIT - Get Free Report) last issued its quarterly earnings data on Thursday, April 16th. The information technology services provider reported $0.04 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.04. Wipro had a return on equity of 14.97% and a net margin of 14.25%.The company had revenue of $2.59 billion for the quarter, compared to analyst estimates of $2.65 billion. As a group, analysts anticipate that Wipro Limited will post 0.14 EPS for the current year.

Hedge Funds Weigh In On Wipro

A number of hedge funds have recently modified their holdings of the business. First Trust Advisors LP boosted its stake in shares of Wipro by 8.6% during the third quarter. First Trust Advisors LP now owns 16,654,556 shares of the information technology services provider's stock worth $43,801,000 after buying an additional 1,317,586 shares during the period. UBS Group AG increased its position in Wipro by 4.7% in the 4th quarter. UBS Group AG now owns 13,654,405 shares of the information technology services provider's stock valued at $38,779,000 after acquiring an additional 609,565 shares during the period. JPMorgan Chase & Co. increased its position in Wipro by 24.2% in the 3rd quarter. JPMorgan Chase & Co. now owns 7,096,868 shares of the information technology services provider's stock valued at $18,665,000 after acquiring an additional 1,384,264 shares during the period. B. Metzler seel. Sohn & Co. AG purchased a new stake in Wipro during the 4th quarter valued at approximately $5,075,000. Finally, Robeco Institutional Asset Management B.V. lifted its position in Wipro by 5.7% during the 4th quarter. Robeco Institutional Asset Management B.V. now owns 4,871,157 shares of the information technology services provider's stock worth $13,834,000 after acquiring an additional 263,631 shares during the period. 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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