Infosys Limited (NYSE:INFY) finished Wednesday with an addition of $0.28 to close at $17.27, an upside of 1.65 percent. An average of 5,747,920 shares of common stock have been traded in the last five days. There was a gain of $0.14 in the past week, and it reached a new high 7 times over the past 12 months. The last 20 days have seen an average of 7,799,455 shares traded, while the 50-day average volume stands at 10,265,296.
INFY stock has increased by 5.43% in the last month. The company shares reached their 1-month lowest point of $16.17 on 07/24/23. With the stock rallying to its 52-week high on 02/09/23, shares of the company touched a low of $14.71 and a high of $20.57 in 52 weeks. It has reached a new high 8 times so far this year and lost -4.11% or -$0.74 in price. In spite of this, the price is down -16.04% from the 52-week high.
Valuation Metrics
Infosys Limited (INFY) has a trailing price-to-earnings (P/E) ratio of 24.29. The stock’s beta is 0.95. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 4.01, the price-to-book (PB) ratio at 8.00.
The company has a payout ratio of 58.95%. The company’s most recent quarterly dividend payment was $0.2134 a share, representing a up of 24.8% from $0.1710 last year. Its latest increase dividend $0.0424 reported on Wednesday May 31 2023.
Financial Health
The quick ratio of Infosys Limited for the three months ended June 29 was 1.70, and the current ratio was 1.70, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.09 and a total debt to equity ratio of 0.11 for the quarter ending June 29. Infosys Limited’s EBITDA margin for the year ending June 29 is 24.26%, while its operating margin for the same period stands at 21.20%. Its gross profit as reported stood at $5.5 billion compared to revenue of $18.21 billion.
Earnings Surprise
For the three-month period that ended June 29, Infosys Limited had $301.0 million in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $2.98 billion in the quarter, while revenues were grew 0.6%. The analyst consensus anticipated Infosys Limited’s latest quarter earnings to come in at $0.18 per share, but it turned out to be $0.17, a -5.60% surprise. For the quarter, EBITDA amounted to $1.1 billion.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Infosys Limited (INFY) price momentum. RSI 9-day as of the close on 23 August was 64.43%, suggesting the stock is Neutral, with historical volatility in this time frame at 17.76%.
As of today, INFY’s price is $16.97 +0.82% or $0.14 from its 5-day moving average. INFY is currently trading +3.91% higher than its 20-day SMA and +0.76% higher than its 100-day SMA. However, the stock’s current price level is +9.23% above the SMA50 and -5.06% below the SMA200.
The stochastic %K and %D were 69.58% and 55.55%, respectively, and the average true range (ATR) was 0.29. With the 14-day stochastic at 94.67% and the average true range at 0.31, the RSI (14) stands at 61.07%. The stock has reached 0.09 on the 9-day MACD Oscillator while the 14-day reading was at 0.16.
Analyst Ratings
Goldman launched coverage on Infosys Limited (NYSE: INFY) in its analyst report released on August 22, 2023. The firm assigned the stock a Buy rating. The consensus rating for Infosys Limited (INFY) among analysts is Hold. According to current brokerage recommendations, 9 brokerage firms advise that investors sell INFY, while 16 suggest investors hold. There are 5 analysts who rate the stock as underweight. The stock is rated overweight by 4 analysts, while 15 others rate it as a “buy”.
What is INFY’s price target for the next 12 months?
Analysts predict a range of price targets between $13.00 and $22.00, with a median target of $17.57. Taking a look at these predictions, the average price target given by analysts for Infosys Limited (INFY) stock is $17.39.
