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

Key Points

• Wipro shares hit a new 52-week low, trading as low as $1.80 during the day and last changing hands at $1.8250, below the prior close of $1.84.
• Analyst sentiment has turned more negative, with Weiss Ratings downgrading Wipro to sell and JPMorgan cutting its rating to underweight while lowering its price target to $1.70.
• The company recently matched quarterly EPS expectations at $0.03, but its stock remains below key moving averages and Wall Street’s average rating is Strong Sell with a $1.70 target price.

Wipro Limited (NYSE:WIT - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Thursday . The company traded as low as $1.80 and last traded at $1.8250, with a volume of 1198492 shares. The stock had previously closed at $1.84.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on WIT. Weiss Ratings downgraded shares of Wipro from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Tuesday. JPMorgan Chase & Co. cut shares of Wipro from a "neutral" rating to an "underweight" rating and dropped their price objective for the company from $2.20 to $1.70 in a research note on Wednesday, June 24th. One analyst has rated the stock with a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Strong Sell" and an average target price of $1.70.

Wipro Stock Performance

The firm's 50-day moving average price is $2.08 and its two-hundred day moving average price is $2.28. The stock has a market cap of $19.33 billion, a price-to-earnings ratio of 13.18, a PEG ratio of 3.96 and a beta of 0.97.

Wipro (NYSE:WIT - Get Free Report) last released its quarterly earnings data on Thursday, July 16th. The information technology services provider reported $0.03 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.03. Wipro had a net margin of 14.25% and a return on equity of 14.97%. As a group, sell-side analysts expect that Wipro Limited will post 0.14 earnings per share for the current fiscal year.

Institutional Trading of Wipro

Several institutional investors have recently made changes to their positions in the company. Morgan Stanley grew its position in Wipro by 65.0% in the fourth quarter. Morgan Stanley now owns 48,531,368 shares of the information technology services provider's stock worth $137,829,000 after acquiring an additional 19,114,904 shares during the period. State Street Corp raised its position in Wipro by 0.8% in the fourth quarter. State Street Corp now owns 23,861,012 shares of the information technology services provider's stock valued at $67,765,000 after purchasing an additional 179,034 shares during the period. Millennium Management LLC lifted its stake in shares of Wipro by 25.9% in the 3rd quarter. Millennium Management LLC now owns 21,305,291 shares of the information technology services provider's stock valued at $56,033,000 after purchasing an additional 4,382,854 shares during the last quarter. First Trust Advisors LP grew its holdings in shares of Wipro by 20.9% during the 1st quarter. First Trust Advisors LP now owns 18,557,277 shares of the information technology services provider's stock worth $39,341,000 after purchasing an additional 3,206,153 shares during the period. Finally, Defiance ETFs LLC purchased a new position in shares of Wipro during the 4th quarter worth $39,525,000. Hedge funds and other institutional investors own 2.36% of the company's stock.

Wipro Company Profile

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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