Wipro (NYSE:WIT) Hits New 52-Week Low - Time to Sell?

Key Points

• Wipro hit a new 52-week low of $2.01 (last $2.015) with about 789,128 shares traded, trading below its 50-day and 200-day moving averages of $2.19 and $2.53 respectively.
• Analysts have been cutting coverage — including Morgan Stanley's move to "underweight" and a Weiss Ratings downgrade — leaving an average MarketBeat rating of Reduce (two Holds, one Sell).
• In its latest quarter Wipro reported EPS of $0.04 (in line with estimates) but missed revenue expectations at $2.59B versus $2.65B, signaling mixed operational results despite a market capitalization of about $21.1B.

Wipro Limited (NYSE:WIT - Get Free Report)'s stock price reached a new 52-week low during mid-day trading on Wednesday . The company traded as low as $2.01 and last traded at $2.0150, with a volume of 789128 shares changing hands. The stock had previously closed at $2.03.

Analysts Set New Price Targets

A number of research firms have issued reports on WIT. Morgan Stanley cut Wipro to an "underweight" rating in a research note on Monday, January 19th. Weiss Ratings lowered Wipro from a "hold (c)" rating to a "hold (c-)" rating in a report on Wednesday, April 22nd. Two investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of "Reduce".

Wipro Stock Down 0.7%

The company has a market capitalization of $21.11 billion, a P/E ratio of 14.39, a price-to-earnings-growth ratio of 4.49 and a beta of 1.06. The business has a fifty day moving average price of $2.19 and a 200 day moving average price of $2.53.

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

Institutional Investors Weigh In On Wipro

Several large investors have recently made changes to their positions in WIT. Morgan Stanley boosted its holdings in shares of Wipro by 65.0% in the 4th quarter. Morgan Stanley now owns 48,531,368 shares of the information technology services provider's stock valued at $137,829,000 after buying an additional 19,114,904 shares during the last quarter. Defiance ETFs LLC acquired a new stake in shares of Wipro in the 4th quarter valued at approximately $39,525,000. UBS Group AG boosted its holdings in shares of Wipro by 165.0% in the 3rd quarter. UBS Group AG now owns 13,044,840 shares of the information technology services provider's stock valued at $34,308,000 after buying an additional 8,122,275 shares during the last quarter. Norges Bank acquired a new stake in shares of Wipro in the 4th quarter valued at approximately $22,036,000. Finally, Bank of America Corp DE boosted its holdings in shares of 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 buying an additional 5,762,771 shares during the last quarter. Institutional investors and hedge funds 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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