Is Wipro Limited (NYSE: WIT) Back In The Buying Zone?

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    SSgA Funds Management, Inc. recently announced the acquisition of new stake in Wipro Limited (NYSE:WIT). The institutional investor has increased its shareholding in the Technology company by 63.52% to 12.1 million shares with purchase of 4.7 million shares. This fresh investment now brings its stake to 0.21% valued currently at $40.05 million. In addition, AQR Capital Management LLC raised its holdings by 1.69 million to 9.05 million shares. And Schroder Investment Management Lt. has lifted its position by 16.36% or 1.18 million shares – to 8.39 million shares.

    With over 1.22 million Wipro Limited (WIT) shares trading Tuesday and a closing price of $3.49 on the day, the dollar volume was approximately $4.25 million. The shares have shown a positive weekly performance of 3.56% and its price on 07/14/20 gained nearly 2.95%. Currently, there are 5.69B common shares owned by the public and among those 1.69B shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 44 analysts who have offered their price forecasts for WIT have a consensus price objective of $2.79. The analysts have set the share’s price value over the next 12 months at a high of $3.52 and a low of $2.12 should the stock experience a downside. Incidentally, analysts’ outlook for the Wipro Limited stock is 4.00 for the next 12 months. The average price target is -15.56% below its last price level and a downside to the estimated low will see the stock lose -64.62% over that period. But an upside of 0.85% will see the stock hit the forecast high price target while mean target price for the stock is $2.78.

    The top 3 mutual fund holders in Wipro Limited are Vanguard Total International Stoc, Vanguard Emerging Markets Stock I, and Nordea 2 – Global Sustainable Enh. Vanguard Total International Stoc owns 6.86 million shares of the company’s stock, all valued at over $22.7 million. Vanguard Emerging Markets Stock I sold -0.44 million shares to see its total holdings shrink to 5.62 million shares valued at over $18.6 million and representing 0.10% of the shares outstanding. Nordea 2 – Global Sustainable Enh bought 11568.0 shares to bring its total holdings to over 2.8 million shares at a value of $9.27 million. Nordea 2 – Global Sustainable Enh now owns shares totaling to 0.05% of the shares outstanding.

    Shares of Wipro Limited (NYSE: WIT) opened at $3.40, up $0.01 from a prior closing price of $3.39. However, the script later closed the day at $3.49, up 2.95%. The company’s stock has a 5-day price change of 3.56% and 12.58% over the past three months. WIT shares are trading -6.93% year to date (YTD), with the 12-month market performance down to -16.51% lower. It has a 12-month low price of $2.52 and touched a high of $4.29 over the same period. Currently, 1.22 million shares have been traded, compared to an average intraday trading volume of 1.25 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 5.44%, 9.16%, and 0.74% respectively.

    Institutional ownership of Wipro Limited (NYSE: WIT) shares accounts for 2.40% of the company’s 5.69B shares outstanding. Mutual fund holders own 0.76%, while other institutional holders and individual stakeholders account for 1.60% and — respectively.

    It has a market capitalization of $17.48B and a beta (3y monthly) value of 0.54. The stock’s trailing 12-month PE ratio is 15.79, while the earnings-per-share (ttm) stands at $0.22. The company has a PEG of 1.75 and a Quick Ratio of 2.40 with the debt-to-equity ratio at 0.17. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.47% over the week and 2.69% over the month.

    Analysts forecast that Wipro Limited (WIT) will achieve an EPS of $0.05 for the current quarter, $0.05 for the next quarter and $0.24 for 2022. The lowest estimate earnings-per-share for the quarter is $0.05 while analysts give the company a high EPS estimate of $0.05. Comparatively, EPS for the current quarter was $0.06 a year ago. Earnings per share for the fiscal year are expected to increase by 11.20%, and 14.22% over the next financial year. EPS should grow at an annualized rate of 9.00% over the next five years, compared to 4.80% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 44 brokerage firm advisors rate Wipro Limited (WIT) as a “Moderate Sell” at a consensus score of 4.00. Specifically, 8 Wall Street analysts polled rate the stock as a buy, while 15 of the 44 advise that investors “hold,” and 11 rated it as a “Sell.”

    Looking at the support for the WIT, a number of firms have released research notes about the stock. Jefferies stated their Hold rating for the stock in a research note on March 25, 2020, with the firm’s price target at. JP Morgan coverage for the Wipro Limited (WIT) stock in a research note released on February 20, 2020 offered a Underweight rating with a price target of. Goldman was of a view on November 21, 2019 that the stock is Sell, while Credit Suisse gave the stock Neutral rating on October 15, 2019, issuing a price target of. Goldman on their part issued Neutral rating on October 03, 2019.

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