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

Key Points

• Wipro hit a new 52-week low, trading as low as $1.79 intraday before ending near $1.815, as the stock continued to weaken on heavy volume.
• Analyst sentiment remains bearish: JPMorgan downgraded Wipro to underweight and Weiss Ratings cut it to sell, leaving the stock with an average rating of Strong Sell and a consensus price target of $1.70.
• Wipro’s latest quarterly results were mixed, with EPS of $0.03 meeting expectations but revenue of $2.58 billion coming in slightly below forecasts. The company also trades below both its 50-day and 200-day moving averages, reinforcing the negative momentum.

Wipro Limited (NYSE:WIT - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Wednesday . The stock traded as low as $1.79 and last traded at $1.8150, with a volume of 9238087 shares changing hands. The stock had previously closed at $1.85.

Wall Street Analyst Weigh In

WIT has been the subject of a number of analyst reports. JPMorgan Chase & Co. downgraded shares of Wipro from a "neutral" rating to an "underweight" rating and reduced their price objective for the stock from $2.20 to $1.70 in a report on Wednesday, June 24th. Weiss Ratings lowered shares of Wipro from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Tuesday, July 14th. One investment analyst has rated the stock with a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Strong Sell" and an average price target of $1.70.

Wipro Stock Down 1.9%

The business has a 50-day simple moving average of $2.07 and a two-hundred day simple moving average of $2.25. The stock has a market capitalization of $19.01 billion, a P/E ratio of 13.96, a PEG ratio of 4.22 and a beta of 0.97.

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, meeting analysts' consensus estimates of $0.03. Wipro had a return on equity of 14.80% and a net margin of 13.93%.The company had revenue of $2.58 billion during the quarter, compared to analysts' expectations of $2.60 billion. On average, sell-side analysts forecast that Wipro Limited will post 0.14 earnings per share for the current year.

Hedge Funds Weigh In On Wipro

Several institutional investors have recently added to or reduced their stakes in the company. UBS Group AG increased its holdings in shares of Wipro by 4.7% during the fourth quarter. UBS Group AG now owns 13,654,405 shares of the information technology services provider's stock worth $38,779,000 after buying an additional 609,565 shares in the last quarter. JPMorgan Chase & Co. boosted its holdings in shares of 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 worth $18,665,000 after acquiring an additional 1,384,264 shares in the last quarter. B. Metzler seel. Sohn & Co. AG acquired a new position in shares of Wipro in the 4th quarter worth approximately $5,075,000. Robeco Institutional Asset Management B.V. grew 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 last quarter. Finally, Prudential PLC bought a new stake in Wipro during the 4th quarter worth approximately $1,110,000. 2.36% of the stock is owned by institutional investors.

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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