Infosys stock: buy or sell?
Updated on:
October 18th, 2019
3
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 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?
Financial institutions and banks post stock ratings everyday.
At Stocks2.com, we gathered 15 ratings published for INFY stock in the last 30 days.| Date | Analyst / Broker | Previous rating | Current rating |
| 2019-9-16 | UBS Group | Buy | Neutral |
| 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 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.
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%.
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:| 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 beatiful climb for the Earnings per Share (EPS). Analyst 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 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%| 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 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%.| 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 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:
| INFY | ACN | CTSH | HPQ | IBM | |
|---|---|---|---|---|---|
| Market cap | $44.8 B | $119.0 B | $33.5 B | $24.9 B | $118.8 B |
| Total shares | 4,240.0 M | 636.0 M | 552.3 M | 1,480.0 M | 885.9 M |
| Float shares | 3,570.0 M | 635.7 M | 549.9 M | 1,480.0 M | 884.5 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 selling | 0.0% | 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:| Stock | 3m | 6m | 12m |
|---|---|---|---|
| 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% |
| MSFTMicrosoft | 0.91% | 12.16% | 28.44% |
| ORCLOracle | -4.77% | 0.91% | 16.58% |
| SAP | 3.61% | 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:- 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