Infosys Limited (NYSE:INFY) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Wednesday.

According to Zacks, “Over the past one year period, Infosys’ shares have registered a drop, comparing unfavorably with the Zacks categorized IT Services industry's rally. The company has had a dull earnings surprise history over the four trailing quarters, with three in-line earnings and one miss, constrained by factors like seasonality and stiff competition in the IT industry. Sluggish global IT industry and currency volatility add to Infosys' woes. Though the company has been leveraging its big data capabilities to boost market share, declining demand in the traditional IT technologies has been weighing on its financials. Meanwhile, President-elect Donald Trump’s anti-immigration stance is likely to put pressure on Infosys' margins. However, the company’s Renew New strategy has boosted its strength and the recent introduction of AikiDo service offerings and Zero Distance Program are expected to act as tailwinds, promoting growth.”

INFY has been the subject of several other research reports. Pacific Crest restated a “hold” rating on shares of Infosys Limited in a research report on Monday, October 10th. Cantor Fitzgerald set a $17.00 price objective on shares of Infosys Limited and gave the company a “hold” rating in a research report on Saturday, October 15th. Bank of America lowered shares of Infosys Limited from a “buy” rating to a “neutral” rating in a research report on Thursday, December 1st. BMO Capital Markets restated a “market perform” rating and set a $17.00 price objective (down previously from $19.00) on shares of Infosys Limited in a research report on Tuesday, October 18th. Finally, Morgan Stanley restated an “overweight” rating on shares of Infosys Limited in a research report on Tuesday, October 18th. Two research analysts have rated the stock with a sell rating, thirteen have issued a hold rating and two have given a buy rating to the company. Infosys Limited presently has an average rating of “Hold” and an average price target of $17.80.

Analyst Recommendations for Infosys Limited (NYSE:INFY)

Shares of Infosys Limited (NYSE:INFY) traded down 5.57% during trading on Wednesday, reaching $14.40. 13,438,206 shares of the company traded hands. Infosys Limited has a 12 month low of $13.74 and a 12 month high of $20.47. The firm has a market capitalization of $32.91 billion, a PE ratio of 15.65 and a beta of 0.93. The firm has a 50-day moving average price of $14.77 and a 200-day moving average price of $15.76.

Infosys Limited (NYSE:INFY) last posted its quarterly earnings data on Friday, October 14th. The company reported $0.24 earnings per share for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.24. Infosys Limited had a net margin of 21.19% and a return on equity of 22.84%. The company earned $2.59 billion during the quarter. During the same quarter last year, the business posted $0.23 EPS. The business’s revenue for the quarter was up 10.7% on a year-over-year basis. Equities research analysts anticipate that Infosys Limited will post $0.93 EPS for the current year.

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Hedge funds have recently bought and sold shares of the company. Nordea Investment Management AB boosted its stake in Infosys Limited by 19.0% in the third quarter. Nordea Investment Management AB now owns 22,531,592 shares of the company’s stock valued at $355,549,000 after buying an additional 3,595,433 shares in the last quarter. Genesis Asset Managers LLP boosted its stake in Infosys Limited by 37.7% in the third quarter. Genesis Asset Managers LLP now owns 12,715,422 shares of the company’s stock valued at $202,811,000 after buying an additional 3,481,819 shares in the last quarter. Somerset Capital Management LLP bought a new stake in Infosys Limited during the third quarter valued at approximately $42,966,000. Sustainable Growth Advisers LP bought a new stake in Infosys Limited during the third quarter valued at approximately $26,226,000. Finally, Trilogy Global Advisors LP boosted its stake in Infosys Limited by 67.6% in the third quarter. Trilogy Global Advisors LP now owns 3,556,880 shares of the company’s stock valued at $56,126,000 after buying an additional 1,434,607 shares in the last quarter. Institutional investors and hedge funds own 17.28% of the company’s stock.

About Infosys Limited

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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