Infosys Limited (INFY) Cut to “Hold” at Zacks Investment Research
Zacks Investment Research lowered shares of Infosys Limited (NYSE:INFY) from a buy rating to a hold rating in a research report sent to investors on Monday morning.
According to Zacks, “In the past six months, Infosys shares have underperformed the industry average. Infosys is facing business disruption due to a high-profile CEO’s exit, bitter ego battles between top management and a co-founder, plus the reputational damage suffered because of a possible securities fraud charge. In addition, U.S. President Trump’s anti-immigration stance and rising costs pose as major headwinds. The fate of H-1B visas will be a crucial determinant of the company’s future profitability. However, Infosys’ results are benefiting from diligent operational execution. Its Renew New strategy has helped reap multiple benefits, including renewing traditional services, winning deals, introducing services and monetizing from key initiatives. In addition, the company’s solid financial health adds to its strength. Its new offerings under its business platforms like Edge, Panaya and Skava are also helping it gain new clients.”
Several other equities analysts also recently commented on INFY. HSBC Holdings plc upgraded Infosys Limited from a hold rating to a buy rating in a report on Thursday, June 8th. Goldman Sachs Group, Inc. (The) reiterated a sell rating on shares of Infosys Limited in a report on Friday, June 9th. BidaskClub upgraded Infosys Limited from a hold rating to a buy rating in a report on Wednesday, July 12th. Cantor Fitzgerald reissued a hold rating and issued a $15.00 price objective on shares of Infosys Limited in a research report on Friday, July 14th. Finally, UBS AG cut Infosys Limited from a buy rating to a hold rating in a research report on Friday, August 18th. Three investment analysts have rated the stock with a sell rating, eleven have given a hold rating and four have given a buy rating to the company. The stock currently has a consensus rating of Hold and a consensus price target of $15.34.
Infosys Limited (NYSE INFY) opened at 14.64 on Monday. Infosys Limited has a 52-week low of $13.42 and a 52-week high of $16.71. The stock’s 50 day moving average is $15.09 and its 200-day moving average is $15.16. The firm has a market capitalization of $33.46 billion, a PE ratio of 15.43 and a beta of 0.79.
Infosys Limited (NYSE:INFY) last announced its quarterly earnings results on Friday, July 14th. The technology company reported $0.24 EPS for the quarter, beating the consensus estimate of $0.23 by $0.01. Infosys Limited had a return on equity of 21.37% and a net margin of 20.95%. The company had revenue of $170.78 billion for the quarter, compared to the consensus estimate of $170.51 billion. During the same quarter last year, the company posted $0.22 earnings per share. The company’s revenue for the quarter was up 1.8% compared to the same quarter last year. Equities analysts expect that Infosys Limited will post $0.99 earnings per share for the current year.
Hedge funds have recently modified their holdings of the stock. Kernodle & Katon Asset Management Group LLC bought a new position in Infosys Limited in the first quarter worth $100,000. PNC Financial Services Group Inc. lifted its position in Infosys Limited by 82.0% in the first quarter. PNC Financial Services Group Inc. now owns 7,547 shares of the technology company’s stock worth $120,000 after purchasing an additional 3,400 shares during the period. Tower Research Capital LLC TRC lifted its position in Infosys Limited by 198.2% in the second quarter. Tower Research Capital LLC TRC now owns 7,967 shares of the technology company’s stock worth $120,000 after purchasing an additional 5,295 shares during the period. Equity Investment Corp Acquisition Inc bought a new position in Infosys Limited in the second quarter worth $151,000. Finally, Personal Capital Advisors Corp bought a new position in Infosys Limited in the second quarter worth $166,000. 19.86% of the stock is owned by hedge funds and other institutional investors.
Infosys Limited Company Profile
Infosys Limited is engaged in consulting, technology, outsourcing and next-generation services. The Company, along with its subsidiaries, provides business information technology services comprising application development and maintenance, independent validation, infrastructure management, engineering services comprising product engineering and life cycle solutions and business process management; consulting and systems integration services comprising consulting, enterprise solutions, systems integration and advanced technologies; products, business platforms and solutions to accelerate intellectual property-led innovation, including Finacle, its banking solution, and offerings in the areas of Analytics, Cloud and Digital Transformation.
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