Infosys (NYSE:INFY) Shares Gap Down - Here's Why

Shares of Infosys Limited (NYSE:INFY - Get Free Report) gapped down before the market opened on Friday . The stock had previously closed at $23.42, but opened at $22.63. Infosys shares last traded at $22.56, with a volume of 650,888 shares traded.

Wall Street Analyst Weigh In

Several research analysts have weighed in on the stock. StockNews.com upgraded shares of Infosys from a "hold" rating to a "buy" rating in a research note on Thursday, December 12th. HSBC upgraded Infosys from a "hold" rating to a "buy" rating in a report on Monday, December 9th. Hsbc Global Res upgraded Infosys from a "hold" rating to a "strong-buy" rating in a research note on Monday, December 9th. Investec downgraded Infosys from a "hold" rating to a "sell" rating in a research note on Thursday, October 3rd. Finally, Erste Group Bank upgraded Infosys from a "hold" rating to a "buy" rating in a report on Wednesday, September 11th. Two equities research analysts have rated the stock with a sell rating, three have assigned a hold rating, eight have given a buy rating and one has issued a strong buy rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $20.85.

Infosys Trading Down 2.9 %

The stock has a market capitalization of $94.15 billion, a price-to-earnings ratio of 29.14, a price-to-earnings-growth ratio of 3.77 and a beta of 1.00. The company has a fifty day moving average of $22.31 and a two-hundred day moving average of $21.50.

Infosys (NYSE:INFY - Get Free Report) last posted its earnings results on Thursday, October 17th. The technology company reported $0.19 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.19. Infosys had a net margin of 17.15% and a return on equity of 31.43%. The business had revenue of $4.89 billion for the quarter, compared to analyst estimates of $4.89 billion. During the same period last year, the business posted $0.18 EPS. As a group, sell-side analysts predict that Infosys Limited will post 0.75 earnings per share for the current fiscal year.

Infosys Increases Dividend

The firm also recently announced a semi-annual dividend, which was paid on Tuesday, October 29th. Investors of record on Friday, January 1st were paid a dividend of $0.2126 per share. This is an increase from Infosys's previous semi-annual dividend of $0.20. The ex-dividend date was Tuesday, October 29th. This represents a yield of 1.1%. Infosys's dividend payout ratio is presently 53.85%.

Institutional Investors Weigh In On Infosys

Hedge funds and other institutional investors have recently modified their holdings of the stock. Robeco Institutional Asset Management B.V. grew its position in Infosys by 68.8% in the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 24,339,983 shares of the technology company's stock worth $542,051,000 after purchasing an additional 9,923,744 shares during the last quarter. Canada Pension Plan Investment Board lifted its position in shares of Infosys by 37.3% in the 2nd quarter. Canada Pension Plan Investment Board now owns 21,580,344 shares of the technology company's stock worth $401,826,000 after acquiring an additional 5,862,144 shares during the period. Victory Capital Management Inc. grew its holdings in shares of Infosys by 6,071.1% during the 3rd quarter. Victory Capital Management Inc. now owns 4,739,830 shares of the technology company's stock worth $105,556,000 after purchasing an additional 4,663,023 shares in the last quarter. Millennium Management LLC increased its position in shares of Infosys by 67.9% during the second quarter. Millennium Management LLC now owns 7,601,073 shares of the technology company's stock valued at $141,532,000 after purchasing an additional 3,074,432 shares during the period. Finally, Daiwa Securities Group Inc. raised its stake in shares of Infosys by 46.0% in the second quarter. Daiwa Securities Group Inc. now owns 5,234,500 shares of the technology company's stock valued at $97,467,000 after purchasing an additional 1,648,650 shares in the last quarter. Institutional investors and hedge funds own 16.20% of the company's stock.

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.