Infosys Limited (NYSE:INFY) Sees Large Growth in Short Interest

Infosys Limited (NYSE:INFY) was the target of a significant increase in short interest during the month of October. As of October 31st, there was short interest totalling 74,940,000 shares, an increase of 11.1% from the October 15th total of 67,430,000 shares. Based on an average daily trading volume, of 7,940,000 shares, the days-to-cover ratio is currently 9.4 days. Approximately 1.8% of the company’s stock are sold short.

Analyst Upgrades and Downgrades

Several analysts have commented on the stock. BMO Capital Markets increased their price target on shares of Infosys from $23.00 to $25.00 and gave the company a “market perform” rating in a research report on Friday, October 18th. Erste Group Bank raised shares of Infosys from a “hold” rating to a “buy” rating in a research report on Wednesday, September 11th. Investec lowered shares of Infosys from a “hold” rating to a “sell” rating in a research report on Thursday, October 3rd. Finally, StockNews.com raised shares of Infosys from a “hold” rating to a “buy” rating in a research report on Tuesday, November 12th. Two equities research analysts have rated the stock with a sell rating, four have issued a hold rating and seven have assigned a buy rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $20.85.

Infosys Stock Performance

Infosys stock traded up $0.08 during trading on Monday, reaching $21.61. The company had a trading volume of 4,816,443 shares, compared to its average volume of 9,226,959. The firm’s 50-day simple moving average is $22.33 and its 200 day simple moving average is $20.61. Infosys has a 1-year low of $16.04 and a 1-year high of $23.48. The firm has a market capitalization of $89.50 billion, a PE ratio of 27.60, a price-to-earnings-growth ratio of 3.48 and a beta of 1.00.

Infosys (NYSE:INFY) last released its quarterly 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 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 earned $0.18 EPS. Analysts anticipate that Infosys will post 0.75 EPS for the current year.

Infosys Increases Dividend

The company also recently disclosed a semi-annual dividend, which was paid on Tuesday, October 29th. Shareholders of record on Friday, January 1st were issued a $0.2126 dividend. The ex-dividend date of this dividend was Tuesday, October 29th. This represents a yield of 1.1%. This is a positive change from Infosys’s previous semi-annual dividend of $0.20. Infosys’s dividend payout ratio (DPR) is presently 53.85%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Mizuho Securities Co. Ltd. purchased a new position in Infosys in the 3rd quarter valued at $33,000. Hilltop National Bank raised its holdings in shares of Infosys by 50.8% during the 2nd quarter. Hilltop National Bank now owns 2,979 shares of the technology company’s stock worth $55,000 after acquiring an additional 1,004 shares during the period. GAMMA Investing LLC raised its holdings in shares of Infosys by 22.6% during the 2nd quarter. GAMMA Investing LLC now owns 2,931 shares of the technology company’s stock worth $55,000 after acquiring an additional 541 shares during the period. Whittier Trust Co. of Nevada Inc. raised its holdings in shares of Infosys by 126.7% during the 2nd quarter. Whittier Trust Co. of Nevada Inc. now owns 3,029 shares of the technology company’s stock worth $56,000 after acquiring an additional 1,693 shares during the period. Finally, Ridgewood Investments LLC purchased a new position in shares of Infosys during the 2nd quarter worth $162,000. Hedge funds and other institutional investors own 10.89% of the company’s stock.

Infosys Company Profile

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.