Infosys (NYSE:INFY) Sets New 52-Week Low Following Weak Earnings

Infosys Ltd. (NYSE:INFY)’s share price reached a new 52-week low on Thursday following a weaker than expected earnings announcement. 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 earnings per share for the quarter, missing the consensus estimate of $0.21 by ($0.01). Infosys had a net margin of 16.44% and a return on equity of 32.64%. The company had revenue of $4.99 billion for the quarter, compared to analysts’ expectations of $5.09 billion.

Trending Headlines about Infosys

Here are the key news stories impacting Infosys this week:

• Positive Sentiment: Infosys reported strong large deal wins of $3.6 billion, with 61% net new business, and generated robust free cash flow of $0.96 billion. Infosys PR Newswire release
• Positive Sentiment: AI-related revenue reached 8.2% of the quarter’s total, signaling continued traction in higher-growth services. Infosys PR Newswire release
• Positive Sentiment: Operating margin stayed resilient at 21.1%, helping offset some of the revenue softness. Infosys PR Newswire release
• Neutral Sentiment: Infosys named insider Ashiss Kumar Dash as CEO-designate, a leadership transition that may reassure investors because it suggests continuity, but it also comes alongside a more cautious outlook. Reuters article
• Negative Sentiment: Quarterly revenue missed expectations, reinforcing worries that enterprise clients are slowing spending. Reuters article
• Negative Sentiment: Infosys cut its full-year FY27 growth forecast, which is the main reason investors are selling the stock today. MSN article
• Negative Sentiment: The company also missed consensus EPS by a penny, adding to the cautious tone around the results. MarketBeat earnings report

Analysts Set New Price Targets

A number of research analysts recently issued reports on INFY shares. JPMorgan Chase & Co. cut their price objective on Infosys from $16.80 to $12.70 and set an “overweight” rating for the company in a research note on Wednesday, June 24th. Stifel Nicolaus set a $13.00 target price on shares of Infosys and gave the stock a “hold” rating in a research note on Thursday, July 16th. TD Cowen lowered their price target on shares of Infosys from $13.00 to $10.00 and set a “hold” rating on the stock in a report on Thursday, July 9th. Susquehanna dropped their price target on shares of Infosys from $14.00 to $12.00 and set a “neutral” rating for the company in a research report on Friday, July 10th. Finally, Weiss Ratings reissued a “hold (c-)” rating on shares of Infosys in a research note on Monday, June 8th. One analyst has rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $12.50.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. V Square Quantitative Management LLC purchased a new position in Infosys during the first quarter valued at $97,000. Foster Group Inc. purchased a new stake in Infosys in the 2nd quarter worth $127,000. State of Wyoming purchased a new stake in Infosys in the 1st quarter worth $134,000. Aureus Asset Management LLC bought a new position in shares of Infosys during the 1st quarter valued at about $142,000. Finally, Able Wealth Management LLC bought a new position in shares of Infosys during the 1st quarter valued at about $163,000. 16.20% of the stock is owned by hedge funds and other institutional investors.

Infosys Price Performance

The stock has a market cap of $43.32 billion, a PE ratio of 13.38, a price-to-earnings-growth ratio of 1.43 and a beta of 0.90. The stock has a 50-day moving average price of $11.64 and a two-hundred day moving average price of $13.73.

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.