Gains May Be On The Menu For Infosys Limited (NYSE: INFY)


    Lazard Asset Management LLC recently announced the acquisition of new stake in Infosys Limited (NYSE:INFY). The institutional investor has increased its shareholding in the Technology company by 6.02% to 46.35 million shares with purchase of 2.63 million shares. This fresh investment now brings its stake to 1.09% valued currently at $595.66 million. In addition, Nordea Investment Management AB (.. raised its holdings by 2.32 million to 30.2 million shares. And Genesis Investment Management LLP has lifted its position by 1.70% or 0.47 million shares – to 28.31 million shares.

    With over 7.65 million Infosys Limited (INFY) shares trading Friday and a closing price of $12.81 on the day, the dollar volume was approximately $97.96 million. The shares have shown a positive weekly performance of 1.67% and its price on 08/28/20 gained nearly 0.23%. Currently, there are 4.24B common shares owned by the public and among those 4.20B 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: 50 analysts who have offered their price forecasts for INFY have a consensus price objective of $13.35. The analysts have set the share’s price value over the next 12 months at a high of $15.68 and a low of $11.19 should the stock experience a downside. Incidentally, analysts’ outlook for the Infosys Limited stock is 2.30 for the next 12 months. The average price target is -0.39% below its last price level and a downside to the estimated low will see the stock lose -14.48% over that period. But an upside of 18.3% will see the stock hit the forecast high price target while mean target price for the stock is $13.24.

    The top 3 mutual fund holders in Infosys Limited are BNY Mellon Investment Fds. – Glob, MFS International Growth Fund, and Lazard Emerging Markets Equity Po. BNY Mellon Investment Fds. – Glob owns 17.47 million shares of the company’s stock, all valued at over $224.5 million. The company sold -1.25 million shares recently to bring their total holdings to about 0.41% of the shares outstanding. MFS International Growth Fund bought 52180.0 shares to see its total holdings expand to 8.55 million shares valued at over $109.91 million and representing 0.20% of the shares outstanding. Lazard Emerging Markets Equity Po sold 84575.0 shares to bring its total holdings to over 7.85 million shares at a value of $100.89 million. Lazard Emerging Markets Equity Po now owns shares totaling to 0.18% of the shares outstanding.

    Shares of Infosys Limited (NYSE: INFY) opened at $12.84, up $0.06 from a prior closing price of $12.78. However, the script later closed the day at $12.81, up 0.23%. The company’s stock has a 5-day price change of 1.67% and 38.34% over the past three months. INFY shares are trading 24.13% year to date (YTD), with the 12-month market performance up to 12.47% higher. It has a 12-month low price of $6.76 and touched a high of $13.03 over the same period. Currently, 7.65 million shares have been traded, compared to an average intraday trading volume of 10.54 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 0.35%, 10.29%, and 26.71% respectively.

    Institutional ownership of Infosys Limited (NYSE: INFY) shares accounts for 18.80% of the company’s 4.24B shares outstanding. Mutual fund holders own 10.89%, while other institutional holders and individual stakeholders account for 7.56% and — respectively.

    It has a market capitalization of $54.12B and a beta (3y monthly) value of 0.84. The stock’s trailing 12-month PE ratio is 23.63, while the earnings-per-share (ttm) stands at $0.54. The company has a PEG of 2.95 and a Quick Ratio of 2.20 with the debt-to-equity ratio at 0.07. Price movements for the stock have been influenced by the stock’s volatility, which stands at 1.45% over the week and 1.46% over the month.

    Analysts forecast that Infosys Limited (INFY) will achieve an EPS of $0.13 for the current quarter, $0.14 for the next quarter and $0.61 for 2022. The lowest estimate earnings-per-share for the quarter is $0.13 while analysts give the company a high EPS estimate of $0.14. Comparatively, EPS for the current quarter was $0.13 a year ago. Earnings per share for the fiscal year are expected to increase by 10.00%, and 12.23% over the next financial year. EPS should shrink at an annualized rate of 8.00% over the next five years, compared to 145.00% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 50 brokerage firm advisors rate Infosys Limited (INFY) as a “Moderate Buy” at a consensus score of 2.30. Specifically, 33 Wall Street analysts polled rate the stock as a buy, while 9 of the 50 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the INFY, a number of firms have released research notes about the stock. Wedbush stated their Outperform rating for the stock in a research note on July 16, 2020, with the firm’s price target at $12-$14. Nomura coverage for the Infosys Limited (INFY) stock in a research note released on July 16, 2020 offered a Buy rating with a price target of. JP Morgan was of a view on February 20, 2020 that the stock is Overweight, while Goldman gave the stock Buy rating on February 18, 2020, issuing a price target of. Morgan Stanley on their part issued Overweight rating on January 29, 2020.


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