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

Key Points

• Shares hit a new 52-week low, trading as low as $2.03 (last $2.025) and down about 4% on ~1.36M shares, below its 50-day and 200-day moving averages.
• Morgan Stanley recently downgraded Wipro to "underweight" and MarketBeat shows a consensus rating of "Reduce" (two Holds, one Sell), indicating negative analyst sentiment.
• Q1 results matched EPS estimates at $0.04 but missed revenue ($2.59B vs. $2.65B); the company has a market cap of $21.21B and a P/E of 14.46.

Shares of Wipro Limited (NYSE:WIT - Get Free Report) reached a new 52-week low during mid-day trading on Thursday . The stock traded as low as $2.03 and last traded at $2.0250, with a volume of 1358096 shares trading hands. The stock had previously closed at $2.11.

Analyst Ratings Changes

Separately, Morgan Stanley downgraded Wipro to an "underweight" rating in a research report on Monday, January 19th. Two investment analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Reduce".

Wipro Stock Down 4.0%

The firm has a market cap of $21.21 billion, a price-to-earnings ratio of 14.46, a PEG ratio of 4.56 and a beta of 1.06. The firm has a 50 day moving average of $2.21 and a 200 day moving average of $2.55.

Wipro (NYSE:WIT - Get Free Report) last announced its quarterly earnings data on Friday, April 17th. The information technology services provider reported $0.04 EPS for the quarter, hitting the consensus estimate of $0.04. The company had revenue of $2.59 billion during the quarter, compared to the consensus estimate of $2.65 billion. Wipro had a net margin of 14.25% and a return on equity of 14.97%. Equities analysts expect that Wipro Limited will post 0.14 EPS for the current year.

Hedge Funds Weigh In On Wipro

Institutional investors have recently made changes to their positions in the stock. Morgan Stanley grew its stake 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 period. Defiance ETFs LLC acquired a new position in Wipro during the 4th quarter worth approximately $39,525,000. UBS Group AG boosted its holdings in Wipro by 165.0% in the third quarter. UBS Group AG now owns 13,044,840 shares of the information technology services provider's stock worth $34,308,000 after acquiring an additional 8,122,275 shares in the last quarter. Norges Bank acquired a new stake in Wipro in the fourth quarter valued at approximately $22,036,000. Finally, Bank of America Corp DE increased its holdings in shares of Wipro by 298.9% during the second 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 acquiring an additional 5,762,771 shares in 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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