Wipro (NYSE:WIT) Shares Gap Up - What's Next?

Key Points

• Wipro shares opened higher at $2.04 after previously closing at $1.92, but later traded near $1.94. The stock remains below its 50-day and 200-day moving averages of $2.07 and $2.21, respectively.
• Analyst sentiment is strongly negative: JPMorgan downgraded Wipro to “underweight,” Weiss Ratings moved its rating to “sell,” and the consensus rating is “Strong Sell” with a $1.70 average price target.
• Wipro’s latest quarterly results met expectations with earnings of $0.03 per share, while revenue of $2.58 billion fell slightly short of estimates. Institutional ownership stands at 2.36%, with several major investors increasing their positions.

Shares of Wipro Limited (NYSE:WIT - Get Free Report) gapped up prior to trading on Wednesday . The stock had previously closed at $1.92, but opened at $2.04. Wipro shares last traded at $1.9350, with a volume of 2,441,789 shares trading hands.

Wall Street Analysts Forecast Growth

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

Wipro Trading Up 1.3%

The firm's fifty day moving average price is $2.07 and its 200-day moving average price is $2.21. The firm has a market cap of $19.24 billion, a price-to-earnings ratio of 14.89, a PEG ratio of 4.36 and a beta of 0.97.

Wipro (NYSE:WIT - Get Free Report) last announced its quarterly earnings results on Friday, July 17th. The information technology services provider reported $0.03 EPS for the quarter, hitting the consensus estimate of $0.03. Wipro had a net margin of 13.93% and a return on equity of 15.40%. The firm had revenue of $2.58 billion for the quarter, compared to analyst estimates of $2.60 billion. On average, sell-side analysts expect that Wipro Limited will post 0.14 earnings per share for the current year.

Institutional Trading of Wipro

Several institutional investors and hedge funds have recently made changes to their positions in WIT. Royal Bank of Canada grew its stake in Wipro by 19.8% during the 1st quarter. Royal Bank of Canada now owns 120,431 shares of the information technology services provider's stock worth $369,000 after buying an additional 19,901 shares during the last quarter. NewEdge Advisors LLC lifted its stake in Wipro by 87.0% in the first quarter. NewEdge Advisors LLC now owns 270,702 shares of the information technology services provider's stock valued at $828,000 after buying an additional 125,967 shares during the last quarter. Goldman Sachs Group Inc. boosted its holdings in shares of Wipro by 22.0% in the first quarter. Goldman Sachs Group Inc. now owns 10,354,002 shares of the information technology services provider's stock valued at $31,683,000 after acquiring an additional 1,864,943 shares during the period. Jane Street Group LLC grew its position in shares of Wipro by 184.9% during the first quarter. Jane Street Group LLC now owns 224,438 shares of the information technology services provider's stock worth $687,000 after acquiring an additional 145,658 shares during the last quarter. Finally, Geode Capital Management LLC grew its position in shares of Wipro by 14.3% during the second quarter. Geode Capital Management LLC now owns 107,021 shares of the information technology services provider's stock worth $323,000 after acquiring an additional 13,363 shares during the last quarter. 2.36% of the stock is owned by hedge funds and other institutional investors.

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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