Wipro (NYSE:WIT) Receives "Underperform" Rating from CLSA

Key Points

• CLSA reissued an “Underperform” rating on Wipro, while JPMorgan downgraded the stock to “Underweight” and lowered its price target to $1.70. MarketBeat analysts collectively rate Wipro “Strong Sell,” with an average target price of $1.70.
• Wipro shares rose 0.8% to $1.93, but remained below their 50-day and 200-day moving averages of $2.02 and $2.13, respectively. The stock has traded between $1.75 and $3.09 over the past year.
• Wipro’s latest quarterly results met expectations with earnings of $0.03 per share, while revenue of $2.58 billion fell short of the $2.60 billion estimate. Institutional investors and hedge funds own 2.36% of the company.

Wipro (NYSE:WIT - Get Free Report)'s stock had its "underperform" rating reissued by equities researchers at CLSA in a research report issued to clients and investors on Wednesday, MarketBeat reports.

Several other equities research analysts have also recently issued reports on the stock. JPMorgan Chase & Co. cut shares of Wipro from a "neutral" rating to an "underweight" rating and reduced their price objective for the company from $2.20 to $1.70 in a research report on Wednesday, June 24th. Weiss Ratings upgraded Wipro from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Tuesday, July 28th. One research analyst has rated the stock with a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat, Wipro currently has an average rating of "Strong Sell" and an average target price of $1.70.

Wipro Stock Up 0.8%

Shares of WIT traded up $0.01 during mid-day trading on Wednesday, hitting $1.93. 442,135 shares of the company's stock traded hands, compared to its average volume of 11,498,831. The firm has a market capitalization of $19.04 billion, a P/E ratio of 14.81, a PEG ratio of 4.43 and a beta of 0.98. The business's 50-day moving average price is $2.02 and its 200-day moving average price is $2.13. Wipro has a 1 year low of $1.75 and a 1 year high of $3.09.

Wipro (NYSE:WIT - Get Free Report) last posted its quarterly earnings data on Friday, July 17th. The information technology services provider reported $0.03 earnings per share for the quarter, meeting analysts' consensus estimates of $0.03. Wipro had a return on equity of 15.40% and a net margin of 13.93%.The company had revenue of $2.58 billion during the quarter, compared to analyst estimates of $2.60 billion. Sell-side analysts anticipate that Wipro will post 0.14 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Hamilton Capital LLC purchased a new position in Wipro during the second quarter worth approximately $31,000. Public Employees Retirement System of Ohio acquired a new stake in shares of Wipro in the 2nd quarter worth $138,000. Gould Asset Management LLC CA acquired a new stake in shares of Wipro in the 2nd quarter worth $39,000. Hardy Reed LLC purchased a new position in shares of Wipro during the 2nd quarter worth $44,000. Finally, Nolet Wealth Management LLC acquired a new position in shares of Wipro during the 2nd quarter valued at about $28,000. 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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