Wipro (NYSE:WIT) Sets New 12-Month Low - Here's Why

Key Points

• Wipro Limited's shares reached a new 12-month low of $2.61, with the stock last trading at $2.63 amid a trading volume of 439,619 shares.
• Despite the downgrade in stock performance, Morgan Stanley upgraded Wipro from "underweight" to "equal weight," indicating a potential change in outlook among analysts.
• The company recently reported earnings per share of $0.04, matching analysts' expectations, with a revenue of $2.58 billion, although it was significantly lower than estimated revenue forecasts.

Shares of Wipro Limited (NYSE:WIT - Get Free Report) reached a new 52-week low during trading on Friday . The company traded as low as $2.61 and last traded at $2.63, with a volume of 439619 shares trading hands. The stock had previously closed at $2.67.

Wall Street Analyst Weigh In

Separately, Morgan Stanley upgraded shares of Wipro from an "underweight" rating to an "equal weight" rating in a research report on Friday, June 20th. Three analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, Wipro presently has an average rating of "Reduce".

Wipro Trading Down 0.9%

The stock has a market capitalization of $27.69 billion, a P/E ratio of 17.06, a price-to-earnings-growth ratio of 9.91 and a beta of 0.96. The stock's fifty day moving average price is $2.78 and its two-hundred day moving average price is $2.89.

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

Wipro Cuts Dividend

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

Institutional Investors Weigh In On Wipro

A number of hedge funds have recently made changes to their positions in the business. Evergreen Capital Management LLC lifted its holdings in shares of Wipro by 325.2% in the 2nd quarter. Evergreen Capital Management LLC now owns 134,483 shares of the information technology services provider's stock worth $406,000 after acquiring an additional 102,853 shares during the last quarter. Corient Private Wealth LLC increased its stake in shares of Wipro by 101.9% in the second quarter. Corient Private Wealth LLC now owns 1,101,406 shares of the information technology services provider's stock worth $3,326,000 after buying an additional 555,780 shares during the period. Tidal Investments LLC increased its stake in shares of Wipro by 19.3% in the second quarter. Tidal Investments LLC now owns 27,260 shares of the information technology services provider's stock worth $82,000 after buying an additional 4,403 shares during the period. LMR Partners LLP increased its stake in shares of Wipro by 174.7% in the second quarter. LMR Partners LLP now owns 1,417,767 shares of the information technology services provider's stock worth $4,282,000 after buying an additional 901,587 shares during the period. Finally, EP Wealth Advisors LLC purchased a new position in shares of Wipro in the second quarter worth $61,000. 2.36% of the stock is currently 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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