Infosys stock: buy or sell?
Updated on:
August 22nd, 2019
5
Infosys Limited, together with its subsidiaries, provides consulting, technology, and outsourcing services in North America, Europe, India, and internationally.
Should I buy Infosys stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best time to buy them. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.None of our preferred buy setups matches with Infosys stock situation right now, hence this is not a suitable entry point.
| Buy setup | Elegible |
|---|---|
| New all-time high | No |
| New 52 week high | No |
| Price crossing up 200d MA | No |
| 100d MA crossing up 200d MA | No |
Is Infosys stock a buy?
Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness.
At Stocks2.com, we detected 14 ratings published for INFY stock in the last 30 days.| Date | Analyst / Broker | Previous rating | Current rating |
| 2019-7-15 | Nomura | Reduce | Neutral |
| 2019-7-12 | Wedbush | n/a | Neutral |
| 2019-7-12 | Citigroup | Neutral | Buy |
| 2019-4-2 | HSBC | Buy | Hold |
| 2019-4-15 | Morgan Stanley | Overweight | Equal Weight |
| 2019-4-15 | Deutsche Bank | Buy | Hold |
| 2019-4-15 | Credit Suisse Group | Neutral | Underperform |
| 2019-4-15 | Citigroup | Buy | Neutral |
| 2019-4-12 | Wells Fargo & Co | n/a | Hold |
| 2019-1-4 | Citigroup | Neutral | Buy |
| 2019-1-14 | Susquehanna Bancshares | Negative | Neutral |
| 2019-1-14 | Nomura | Reduce | Neutral |
| 2019-1-11 | Wells Fargo & Co | n/a | Hold |
| 2019-1-11 | Cantor Fitzgerald | n/a | Hold |
Infosys stock analysis
Daily outlook
Infosys shares declined -0.80% to $11.21 today.
Infosys shares declined -0.80% to $11.21 today. On May INFY price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock. Since SMA50d and SMA100d crossed up on July/22, INFY price slid a -1.58%. On July/17, INFY hit a new all time high, pushing higher than on Jul 15th tops. Check different trading setups that use ATHs as triggers.
Weekly outlook
Shares of Infosys closed this week at $11.21 and gained a tiny 1.26%. Early July INFY climbed an amazing 6.23% in just one week.
INFY shows a long term strength with several rising tops and rising bottoms. It left a new bottom at $10.77 last week. Previous top ($11.64) will play as a resistance in possible new gains. Not so far away is the last price record Infosys marked by mid July. Since price and SMA40w lines crossed up late December 2018, INFY climbed $2.28 (25.53%). Since SMA10w and SMA20w crossed up by mid July, INFY price slid a -1.67%.
Infosys stock price history
Infosys stock went public on March 11th, 1999 with a price of $0.361. Since then, INFY stock grew a 3,013.90%, with an average of 150.70% per year. If you had invested right after INFY's IPO a $1,000 in Infosys stock in 1999, it would worth $30,139.00 today.
1: Adjusted price after possible price splits or reverse-splits.
Infosys stock historical price chart
INFY stock reached all-time highs on Jul 17th with a price of $11.64.
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 30 days we found 3 price targets for INFY stock:| Date | Analyst / Broker | Action | Previous target | Current target | Diff |
| 2019-1-14 | Susquehanna Bancshares | Upgrades | $7.50 | $11.00 | 46.7% |
| 2019-1-11 | Wells Fargo & Co | Set Price Target | n/a | $11.00 | - |
| 2019-1-11 | Cantor Fitzgerald | Reiterates | n/a | $10.00 | - |
| (in average) | $7.50 | $10.70 | 43.0% |
Financials and fundamental analysis
Earnings date and Earnings per Share
On January, Infosys reported its latest financial data, posting a nice climb for the Earnings per Share (EPS). Experts were expecting $0.13 per share, but Infosys posted $0.14.| Quarter | Reporting date | Estimated EPS | Actual EPS | Surprise |
|---|---|---|---|---|
| 2017-Q2 | - | n/a | 15.45 | n/a |
| 2017-Q3 | - | n/a | 16.42 | n/a |
| 2017-Q4 | - | n/a | 22.66 | n/a |
| 2018-Q1 | 2018-04-13 | 0.13 | 0.13 | 0.0% |
| 2018-Q2 | 2018-07-13 | 0.13 | 0.14 | 7.7% |
| 2018-Q3 | 2018-10-16 | 0.13 | 0.13 | 0.0% |
| 2018-Q4 | 2019-01-11 | 0.13 | 0.14 | 7.7% |
| 2019-Q1 | - | n/a | n/a | n/a |
| 2019-Q2 | - | n/a | n/a | n/a |
| 2019-Q3 | - | n/a | n/a | n/a |
Annual financial results
Compared to 2018, last anual sales report draw an extraordinary growth of 16.09% to $826,750.00 million USD. When comparing 2019 vs 2018, in contrast, profit margin (that is, the net income divided by revenues) depreciated a -4.09% to 18.63%. To have an updated picture of the financial situation of Infosys, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2018-Q4 that can be compared to 2019 fiscal year results. Annual Infosys TTM sales up to December 2018 were $618,404.00 and earnings were $114,569.90 M USD. If we compare this TTM figures with the last reported annuality, we can esteem Infosys business evolution since March 2019: Annual revenues up to December, compared to lastest yearly report, collapsed a chilling -25.20%. Regarding profit margin, Infosys stayed stable -0.11% to 18.63%| Year | Sales | YoY | Income/(margin) | YoY |
|---|---|---|---|---|
| 2013 | $403,520 M | - | $94,290 M23.4% | - |
| 2014 | $501,330 M | 24.24% | $106,560 M21.3% | 13.01% |
| 2015 | $8,711 M | -98.26% | $2,013 M23.1% | -98.11% |
| 2016 | $630,876 M | 7,142.29% | $136,255 M21.6% | 6,668.75% |
| 2017 | $661,997 M | 4.93% | $138,781 M21.0% | 1.85% |
| 2018 | $712,174 M | 7.58% | $161,849 M22.7% | 16.62% |
| 2019 | $826,750 M | 16.09% | $154,040 M18.6% | -4.82% |
| TTM | $618,404 M | -25.20% | $114,570 M18.5% | -25.62% |
Quarterly financial results
Infosys posted $208,925.00 million in sales for 2018-Q4, a -1.37% less compared to previous quarter. Reported quarter income marked $35,112.30 million 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 turnover to same quarter last year, Infosys sales marked a dazzling increase and boosted a 7,483.48%.| Quarter | Sales1 | QoQ2 | Income1/(margin) | QoQ2 |
|---|---|---|---|---|
| 2017-Q2 | $170,780 M | - | $34,830 M20.4% | - |
| 2017-Q3 | $175,670 M | 2.86% | $37,260 M21.2% | 6.98% |
| 2017-Q4 | $2,755 M | -98.43% | $796 M28.9% | -97.86% |
| 2018-Q1 | $2,805 M | 1.81% | $571 M20.4% | -28.27% |
| 2018-Q2 | $194,838 M | 6,846.10% | $36,752 M18.9% | 6,336.36% |
| 2018-Q3 | $211,836 M | 8.72% | $42,135 M19.9% | 14.65% |
| 2018-Q4 | $208,925 M | -1.37% | $35,112 M16.8% | -16.67% |
| 2019-Q1 | $215,390 M | 3.09% | $40,740 M18.9% | 16.03% |
Infosys ownership
When you are planning to invest in a company, it's 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.
For a better context understanding, the following table shows ownership data compared to other related stocks:
| INFY | ACN | CTSH | HPQ | IBM | |
|---|---|---|---|---|---|
| Market cap | $48.5 B | $121.1 B | $33.8 B | $28.6 B | $119.0 B |
| Total shares | 4,330.0 M | 616.7 M | 552.3 M | 1,510.0 M | 886.6 M |
| Float shares | 3,570.0 M | 635.9 M | 549.9 M | 1,500.0 M | 885.1 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 selling | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
Infosys summary
| Thursday, August 22nd, 2019 | |
|---|---|
| Open | $11.40 |
| Close | $11.21 |
| Day range | $11.19 - $11.33 |
| Previous close | $11.30 |
| Session gain | -0.80% |
| Average true range | $0.20 |
| 50d mov avg | $11.03 |
| 100d mov avg | $10.72 |
| 200d mov avg | $10.36 |
| Daily pattern | |
| Weekly pattern | lb03a |
Infosys performance
Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. We compared Infosys against Accenture, Cognizant Technology Solutions, HP, International Business Machines, Microsoft, Oracle, and Wipro in the following table:| Stock | 3m | 6m | 12m |
|---|---|---|---|
| INFYInfosys | 11.10% | 6.97% | 13.81% |
| ACNAccenture | 9.80% | 22.58% | 20.43% |
| CTSHCognizant Technol... | -0.76% | -14.88% | -18.33% |
| HPQHP | -4.73% | -18.93% | -19.28% |
| IBMInternational Bus... | 2.68% | -1.29% | -3.58% |
| MSFTMicrosoft | 9.51% | 25.04% | 29.10% |
| ORCLOracle | 1.18% | 2.19% | 9.76% |
| SAP | -6.25% | 11.87% | 0.23% |
| WITWipro | -15.99% | -34.56% | -27.99% |
Infosys competitors
One check before trading any stock is to have a look a list of its competitors, in this case for Infosys. We selected 8 companies as Infosys competitors as they are in the same industry or have similar market objectives.- Accenture (ACN)
- Cognizant Technology Solutions (CTSH)
- HP (HPQ)
- International Business Machines (IBM)
- Microsoft (MSFT)
- Oracle (ORCL)
- (SAP)
- Wipro (WIT)
Latest Infosys stock news
- Seeking AlphaInfosys: Still A Buy As Margins Should ReboundJuly 25, 2019
- InvestorPlaceCould Fintech Lift Infosys Stock to $20?May 7, 2019
- InvestorPlaceInfosys Earnings: INFY Stock Slumps on Q4 Earnings ReportApril 12, 2019
- Seeking AlphaInfosys: 40% Upside Driven By Successful TurnaroundFebruary 5, 2019
- InvestorPlaceThe Price Ceiling on Infosys Stock Persists Following EarningsJuly 13, 2018