Infosys stock: buy or sell?

INFY stock price: $10.57 -0.19% At close on October 18th, 2019

Updated on:
October 18th, 2019

3

Infosys shares stayed stable -0.19% to $10.57 on Oct 18th. October 18th was the 3rd red session in a row, sliding in full a -0.94%.

Infosys Limited, together with its subsidiaries, provides consulting, technology, and outsourcing services in North America, Europe, India, and internationally.

Should I buy Infosys stock?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Following a trading strategy helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, Infosys stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean INFY will fall in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Infosys stock a buy?

Financial institutions and banks post stock ratings everyday. At Stocks2.com, we gathered 15 ratings published for INFY stock in the last 30 days.

Is INFY a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-16UBS GroupBuyNeutral
2019-7-15NomuraReduceNeutral
2019-7-12Wedbushn/aNeutral
2019-7-12CitigroupNeutralBuy
2019-4-2HSBCBuyHold
2019-4-15Morgan StanleyOverweightEqual Weight
2019-4-15Deutsche BankBuyHold
2019-4-15Credit Suisse GroupNeutralUnderperform
2019-4-15CitigroupBuyNeutral
2019-4-12Wells Fargo & Con/aHold
2019-1-4CitigroupNeutralBuy
2019-1-14Susquehanna BancsharesNegativeNeutral
2019-1-14NomuraReduceNeutral
2019-1-11Wells Fargo & Con/aHold
2019-1-11Cantor Fitzgeraldn/aHold

Infosys stock analysis

Daily outlook

Infosys stayed steady a neutral -0.19% and closed at $10.57.

Shares of Infosys stayed constant a neutral -0.19% and closed at $10.57. Since last Monday when INFY stock price broke down the SMA200d line, it slid $-0.40 per share (-3.65%). Since SMA50d and SMA100d crossed up on July, INFY price slid a -7.20%. On September, INFY hit a new all time high, pushing higher than on September tops. Check different trading setups that use ATHs as triggers.

INFY stock chart (daily)

Weekly outlook

Infosys closed this week at $10.57 and eased a terrible -3.65%.

Not so far away is the last all-time high Infosys marked early September. This week, Infosys stock lost the significant level of the 40-weeks moving average. Stocks below the 40-weeks moving average line are usually not recommended for average traders. Since SMA10w and SMA20w crossed up by mid July, INFY price slid a -7.28%.

INFY stock chart (weekly)

Infosys stock price history

Infosys stock went public on March 11th, 1999 with a price of $0.041. Since then, INFY stock surged a 26,325.00%, with a yearly average of 1,316.30%. If you had invested $1,000 in Infosys stock in 1999, it would worth $263,250.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Infosys stock historical price chart

INFY stock reached all-time highs on September with a price of $12.08.

Infosys stock price target is $10.70

How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last month we found 3 price forecasts for INFY stock:
INFY stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-1-14Susquehanna BancsharesUpgrades$7.50$11.0046.7%
2019-1-11Wells Fargo & CoSet Price Targetn/a$11.00-
2019-1-11Cantor FitzgeraldReiteratesn/a$10.00-
(in average)$7.50$10.7043.0%
Moving in a range from $11.00 and $10.00, the price forecast for INFY stock is $10.70. In average, analysts' outlook on INFY price forecast is positive, upgrading the target by a 43.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

On January, Infosys reported its latest financial data, posting a beatiful climb for the Earnings per Share (EPS). Analyst were expecting $0.13 per share, but Infosys posted $0.14.
INFY earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a15.45n/a
2017-Q3-n/a16.42n/a
2017-Q4-n/a22.66n/a
2018-Q12018-04-130.130.130.0%
2018-Q22018-07-130.130.147.7%
2018-Q32018-10-160.130.130.0%
2018-Q42019-01-110.130.147.7%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2018, last anual turnover report draw an astounding growth of 16.09% to $826,750.00 M dollars. On the other hand, its earnings margin (compared to revenues) declined to 18.63%, that is $154,040.00 million.

Infosys presents anual results in March, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Infosys TTM sales up to December 2018 were $618,404.00 and income $114,569.90 M dollars. When comparing this TTM figures with the last reported annuality, we can esteem Infosys business evolution since March 2019: Annual sales up to December, compared to lastest yearly report, collapsed a frightening -25.20%. Regarding profit margin, Infosys stayed steady -0.11% to 18.63%

INFY annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$403,520 M-$94,290 M23.4%-
2014$501,330 M24.24%$106,560 M21.3%13.01%
2015$8,711 M-98.26%$2,013 M23.1%-98.11%
2016$630,876 M7,142.29%$136,255 M21.6%6,668.75%
2017$661,997 M4.93%$138,781 M21.0%1.85%
2018$712,174 M7.58%$161,849 M22.7%16.62%
2019$826,750 M16.09%$154,040 M18.6%-4.82%
TTM $618,404 M-25.20%$114,570 M18.5%-25.62%

Quarterly financial results

Infosys reported $208,925.00 million in revenues for 2018-Q4, a -1.37% less compared to previous quarter. Reported quarter earnings marked $35,112.30 M with a profit margin of 16.81%. Profit margin decreased a -3.08% compared to previous quarter when profit margin was 19.89%. When comparing revenues to same quarter last year, Infosys sales marked an extraordinary gain and skyrocketed a 7,483.48%.
INFY quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$170,780 M-$34,830 M20.4%-
2017-Q3$175,670 M2.86%$37,260 M21.2%6.98%
2017-Q4$2,755 M-98.43%$796 M28.9%-97.86%
2018-Q1$2,805 M1.81%$571 M20.4%-28.27%
2018-Q2$194,838 M6,846.10%$36,752 M18.9%6,336.36%
2018-Q3$211,836 M8.72%$42,135 M19.9%14.65%
2018-Q4$208,925 M-1.37%$35,112 M16.8%-16.67%
2019-Q1$215,390 M3.09%$40,740 M18.9%16.03%

Infosys ownership

When you are planning to invest in shares of a stock, it's always worth to review its ownership structure.

Infosys shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.00% of all shares.

In case of Infosys stock, 18.75% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for INFY stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Infosys:

INFYACNCTSHHPQIBM
Market cap$44.8 B$119.0 B$33.5 B$24.9 B$118.8 B
Total shares4,240.0 M636.0 M552.3 M1,480.0 M885.9 M
Float shares3,570.0 M635.7 M549.9 M1,480.0 M884.5 M
  - Institutional holdings (%)18.8%72.5%92.7%83.9%57.5%
  - Insider holdings (%)0.0%0.2%0.2%0.2%0.1%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

Infosys summary

Friday, October 18th, 2019
Open$10.64
Close$10.57
Day range$10.57 - $10.69
Previous close$10.59
Session gain-0.19%
Average true range$0.23
50d mov avg$11.24
100d mov avg$11.07
200d mov avg$10.75
Daily pattern
Weekly pattern

Infosys performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. In the following table, we compare Infosys to Accenture, Cognizant Technology Solutions, HP, International Business Machines, Microsoft, Oracle, and Wipro:
Stock3m6m12m
INFYInfosys-7.20%3.12%13.66%
ACNAccenture-3.12%5.19%19.69%
CTSHCognizant Technol...-6.61%-14.43%-16.70%
HPQHP-20.56%-16.50%-27.02%
IBMInternational Bus...-9.36%-2.17%8.95%
MSFTMicrosoft0.91%12.16%28.44%
ORCLOracle-4.77%0.91%16.58%
SAP3.61%15.86%20.07%
WITWipro-8.87%-13.44%-25.34%

Infosys competitors

We picked a few stocks to conform a list of Infosys competitors to examine if you are interested in investing in INFY:

Latest Infosys stock news