Infosys (NYSE:INFY) Upgraded to Buy at HSBC

HSBC upgraded shares of Infosys (NYSE:INFY) from a hold rating to a buy rating in a report published on Monday morning, Marketbeat Ratings reports.

A number of other equities analysts have also recently issued reports on INFY. Investec cut shares of Infosys from a “hold” rating to a “sell” rating in a report on Thursday, October 3rd. StockNews.com cut shares of Infosys from a “buy” rating to a “hold” rating in a report on Wednesday, November 20th. Erste Group Bank raised shares of Infosys from a “hold” rating to a “buy” rating in a report on Wednesday, September 11th. Finally, BMO Capital Markets lifted their price target on Infosys from $23.00 to $25.00 and gave the company a “market perform” rating in a report on Friday, October 18th. Two analysts have rated the stock with a sell rating, four have assigned a hold rating and seven have assigned a buy rating to the company. According to MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $20.85.

Infosys Stock Performance

Shares of INFY stock opened at $23.16 on Monday. Infosys has a one year low of $16.04 and a one year high of $23.48. The company’s 50-day simple moving average is $22.23 and its 200-day simple moving average is $21.22. The stock has a market capitalization of $95.93 billion, a price-to-earnings ratio of 29.69, a PEG ratio of 3.69 and a beta of 1.00.

Infosys (NYSE:INFY) last issued its earnings results on Thursday, October 17th. The technology company reported $0.19 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.19. Infosys had a net margin of 17.15% and a return on equity of 31.43%. The firm had revenue of $4.89 billion for the quarter, compared to analysts’ expectations of $4.89 billion. During the same quarter last year, the company posted $0.18 earnings per share. As a group, research analysts forecast that Infosys will post 0.75 EPS for the current year.

Infosys Increases Dividend

The business also recently disclosed 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 represents a dividend yield of 1.1%. The ex-dividend date was Tuesday, October 29th. This is a positive change from Infosys’s previous semi-annual dividend of $0.20. Infosys’s dividend payout ratio (DPR) is currently 53.85%.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. International Assets Investment Management LLC acquired a new position in shares of Infosys during the third quarter valued at approximately $16,560,000. Baader Bank Aktiengesellschaft acquired a new position in shares of Infosys during the second quarter valued at approximately $529,000. BNP Paribas Financial Markets increased its stake in shares of Infosys by 5.1% during the third quarter. BNP Paribas Financial Markets now owns 6,072,537 shares of the technology company’s stock valued at $135,235,000 after acquiring an additional 297,183 shares during the period. Connor Clark & Lunn Investment Management Ltd. increased its stake in shares of Infosys by 186.3% during the third quarter. Connor Clark & Lunn Investment Management Ltd. now owns 2,186,685 shares of the technology company’s stock valued at $48,697,000 after acquiring an additional 1,422,814 shares during the period. Finally, Panagora Asset Management Inc. grew its position in Infosys by 52.5% in the second quarter. Panagora Asset Management Inc. now owns 1,010,512 shares of the technology company’s stock worth $18,816,000 after buying an additional 348,018 shares during the last quarter. Institutional investors and hedge funds own 16.20% of the company’s stock.

About Infosys

Infosys Limited, together with its subsidiaries, provides consulting, technology, outsourcing, and next-generation digital services in North America, Europe, India, and internationally. It provides digital marketing and digital workplace, digital commerce, digital experience and interactions, metaverse, data analytics and AI, applied AI, generative AI, sustainability, blockchain, engineering, Internet of Things, enterprise agile DevOps, application modernization, cloud, digital process automation, digital supply chain, Microsoft business application and cloud business, service experience transformation, energy transition, cyber security, and quality engineering solutions; Oracle, SAP, and Saleforce solutions; API economy and microservices; and Topaz, an AI-first set of services, solutions, and platforms using generative AI technologies.