Infosys (NYSE:INFY) Reaches New 1-Year Low Following Weak Earnings

Infosys Ltd. (NYSE:INFY)’s share price reached a new 52-week low on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $10.30 and last traded at $10.4390, with a volume of 6364217 shares traded. The stock had previously closed at $10.93.

The technology company reported $0.20 EPS for the quarter, missing analysts’ consensus estimates of $0.21 by ($0.01). Infosys had a net margin of 16.44% and a return on equity of 32.64%.

Analyst Ratings Changes

A number of research firms recently commented on INFY. Stifel Nicolaus set a $13.00 price target on Infosys and gave the stock a “hold” rating in a report on Thursday, July 16th. BMO Capital Markets cut their price objective on shares of Infosys from $20.00 to $15.00 and set a “market perform” rating for the company in a report on Friday, April 24th. JPMorgan Chase & Co. dropped their target price on shares of Infosys from $16.80 to $12.70 and set an “overweight” rating for the company in a research report on Wednesday, June 24th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Infosys in a research note on Monday, June 8th. Finally, Susquehanna reduced their price target on shares of Infosys from $14.00 to $12.00 and set a “neutral” rating on the stock in a report on Friday, July 10th. One investment analyst has rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $12.50.

Hedge Funds Weigh In On Infosys

Several institutional investors have recently added to or reduced their stakes in INFY. Lazard Asset Management LLC increased its stake in Infosys by 17.0% in the 1st quarter. Lazard Asset Management LLC now owns 26,776,494 shares of the technology company’s stock worth $361,750,000 after acquiring an additional 3,893,801 shares during the last quarter. Trinity Street Asset Management LLP boosted its position in shares of Infosys by 45.5% during the 1st quarter. Trinity Street Asset Management LLP now owns 14,938,546 shares of the technology company’s stock valued at $201,820,000 after acquiring an additional 4,674,742 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in shares of Infosys by 0.7% in the first quarter. Dimensional Fund Advisors LP now owns 7,789,344 shares of the technology company’s stock valued at $105,206,000 after purchasing an additional 52,393 shares in the last quarter. Bank of America Corp DE grew its holdings in shares of Infosys by 7.4% in the first quarter. Bank of America Corp DE now owns 6,790,666 shares of the technology company’s stock valued at $91,742,000 after purchasing an additional 469,843 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership increased its position in Infosys by 8.7% in the first quarter. Arrowstreet Capital Limited Partnership now owns 6,490,358 shares of the technology company’s stock worth $87,685,000 after purchasing an additional 521,169 shares during the last quarter. Hedge funds and other institutional investors own 16.20% of the company’s stock.

Infosys Price Performance

The company has a market cap of $42.51 billion, a P/E ratio of 13.06, a PEG ratio of 1.46 and a beta of 0.90. The firm’s 50-day moving average is $11.66 and its two-hundred day moving average is $13.78.

About Infosys

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.