Infosys (NYSE:INFY) Shares Gap Up – Here’s Why

Shares of Infosys Ltd. (NYSE:INFY) gapped up prior to trading on Thursday. The stock had previously closed at $10.76, but opened at $11.45. Infosys shares last traded at $11.6350, with a volume of 10,788,401 shares changing hands.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on INFY. Wells Fargo & Company set a $11.00 price objective on Infosys and gave the company an “equal weight” rating in a research note on Friday, June 26th. JPMorgan Chase & Co. reaffirmed a “neutral” rating and issued a $10.90 target price (down from $12.70) on shares of Infosys in a report on Friday, July 24th. Jefferies Financial Group reaffirmed a “hold” rating on shares of Infosys in a report on Monday, August 31st. BMO Capital Markets reiterated a “market perform” rating and issued a $12.00 price target (down from $13.00) on shares of Infosys in a research note on Friday, July 24th. Finally, Susquehanna lowered their price target on shares of Infosys from $12.00 to $11.00 and set a “neutral” rating for the company in a report on Friday, July 24th. Ten investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, Infosys has an average rating of “Reduce” and an average target price of $11.45.

Infosys Price Performance

The company has a market capitalization of $46.27 billion, a price-to-earnings ratio of 14.07, a PEG ratio of 2.48 and a beta of 0.87. The stock has a 50 day simple moving average of $11.65 and a two-hundred day simple moving average of $12.12.

Infosys (NYSE:INFY) last released its quarterly earnings data on Thursday, July 23rd. The technology company reported $0.20 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.21 by ($0.01). The business had revenue of $4.99 billion for the quarter, compared to analyst estimates of $5.08 billion. Infosys had a return on equity of 33.91% and a net margin of 16.38%. Equities research analysts predict that Infosys Ltd. will post 0.81 EPS for the current year.

Institutional Investors Weigh In On Infosys

Several institutional investors have recently added to or reduced their stakes in INFY. QRG Capital Management Inc. increased its stake in Infosys by 4.5% in the second quarter. QRG Capital Management Inc. now owns 30,832 shares of the technology company’s stock valued at $323,000 after purchasing an additional 1,335 shares during the last quarter. Sequoia Financial Advisors LLC lifted its position in shares of Infosys by 32.8% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 109,291 shares of the technology company’s stock worth $1,146,000 after buying an additional 26,984 shares during the last quarter. Tidal Investments LLC boosted its holdings in shares of Infosys by 106.3% in the 2nd quarter. Tidal Investments LLC now owns 125,298 shares of the technology company’s stock valued at $1,314,000 after buying an additional 64,563 shares in the last quarter. WINTON GROUP Ltd acquired a new position in shares of Infosys in the 2nd quarter valued at $1,907,000. Finally, Engineers Gate Manager LP boosted its holdings in shares of Infosys by 98.7% in the 2nd quarter. Engineers Gate Manager LP now owns 381,772 shares of the technology company’s stock valued at $4,005,000 after buying an additional 189,631 shares in the last quarter. Hedge funds and other institutional investors own 16.20% of the company’s stock.

Infosys Company Profile

Infosys Ltd. is a digital services and consulting company, which engages in the provision of end-to-end business solutions. It operates through the following segments: Financial Services, Retail, Communication, Energy, Utilities, Resources, and Services, Manufacturing, Hi-Tech, Life Sciences, and All Other. The company was founded by Dinesh Krishnan Swamy, Senapathy Gopalakrishnan, Narayana Ramarao Nagavara Murthy, Raghavan N. S., Ashok Arora, Nandan M. Nilekani, and S. D. Shibulal on July 2, 1981 and is headquartered in Bangalore, India.