Zacks Investment Research lowered shares of Infosys (NYSE:INFY) from a hold rating to a sell rating in a research report sent to investors on Wednesday morning, Zacks.com reports. The brokerage currently has $11.00 price objective on the technology company’s stock.

According to Zacks, “Infosys is benefiting from large deal wins and fast growing digital services. The company’s focus on Agile Digital and AI-driven Core services is a tailwind. Strong demand for its services in cloud, IoT, cyber security, data and analytics is a key driver. Higher investments by clients in digital transformation, artificial intelligence and automation are an upside. However, Infosys is suffering from an unfavorable political climate in the United States and the increasing anti-outsourcing sentiment in certain countries. Higher subcontractor costs, and the company’s compensation revision with a higher variable pay and incentives are weighing on margins. Further, the company’s business is highly prone to the currency volatility between the Indian rupee and the U.S. Shares have underperformed the industry year to date.”

A number of other equities research analysts have also issued reports on the stock. Citigroup lowered shares of Infosys to a hold rating in a report on Monday, October 14th. UBS Group lowered shares of Infosys from a buy rating to a neutral rating in a report on Monday, September 16th. ValuEngine raised shares of Infosys from a strong sell rating to a sell rating in a report on Tuesday, December 3rd. Wells Fargo & Co reissued a hold rating on shares of Infosys in a report on Monday, October 21st. Finally, Robert W. Baird set a $10.00 target price on shares of Infosys and gave the company a hold rating in a research report on Monday, October 21st. Three equities research analysts have rated the stock with a sell rating, thirteen have issued a hold rating and one has assigned a buy rating to the company’s stock. The stock presently has an average rating of Hold and a consensus target price of $11.09.

Infosys stock opened at $10.08 on Wednesday. Infosys has a 52-week low of $8.76 and a 52-week high of $12.08. The firm has a market capitalization of $42.52 billion, a price-to-earnings ratio of 18.67, a PEG ratio of 1.94 and a beta of 0.44. The company has a fifty day simple moving average of $9.72 and a 200-day simple moving average of $10.69.

Infosys (NYSE:INFY) last released its earnings results on Friday, October 11th. The technology company reported $0.13 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.14 by ($0.01). Infosys had a return on equity of 25.70% and a net margin of 17.74%. The business had revenue of $3.21 billion for the quarter, compared to analysts’ expectations of $3.20 billion. As a group, equities analysts expect that Infosys will post 0.54 EPS for the current fiscal year.

Several institutional investors and hedge funds have recently modified their holdings of the company. AQR Capital Management LLC lifted its position in shares of Infosys by 22.2% during the second quarter. AQR Capital Management LLC now owns 24,398,988 shares of the technology company’s stock worth $261,069,000 after purchasing an additional 4,433,640 shares in the last quarter. Polaris Capital Management LLC increased its stake in shares of Infosys by 7.3% during the second quarter. Polaris Capital Management LLC now owns 20,828,218 shares of the technology company’s stock worth $222,862,000 after buying an additional 1,408,400 shares during the period. Mondrian Investment Partners LTD increased its stake in shares of Infosys by 414.8% during the third quarter. Mondrian Investment Partners LTD now owns 17,733,893 shares of the technology company’s stock worth $201,634,000 after buying an additional 14,289,108 shares during the period. Massachusetts Financial Services Co. MA increased its stake in shares of Infosys by 6.8% during the third quarter. Massachusetts Financial Services Co. MA now owns 16,066,078 shares of the technology company’s stock worth $182,672,000 after buying an additional 1,016,410 shares during the period. Finally, Origin Asset Management LLP increased its stake in shares of Infosys by 24.5% during the third quarter. Origin Asset Management LLP now owns 7,538,500 shares of the technology company’s stock worth $85,713,000 after buying an additional 1,485,800 shares during the period. 17.43% of the stock is currently owned by institutional investors and hedge funds.

Infosys Company Profile

Infosys Limited, together with its subsidiaries, provides consulting, technology, and outsourcing services in North America, Europe, India, and internationally. It provides business information technology services, including application development and maintenance, independent validation, infrastructure management, and business process management services, as well as engineering services, such as engineering and life cycle solutions; and consulting and systems integration services comprising consulting, enterprise solutions, systems integration, and advanced technologies.

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