On Friday, April 4, 2025, Infosys Limited's shares experienced a notable decline of 2.70%, closing at 1456.10 rupees. The trading day began with shares priced at 1460.5 rupees, reaching a daily high of 1472 rupees before settling lower. This downturn continues a trend for the technology firm, which has seen its stock drop by 5.57% over the past five days and a more significant 15.14% in the last month. Over the past six months, the decline has been even steeper at 24.72%, and over the past year, the stock has recorded a decrease of 1.40%.
Despite this recent downturn, analysts remain cautiously optimistic about Infosys's future performance. The company's shares have a target price set at 1470 rupees, indicating that there may be room for recovery. Investors are being encouraged to view this dip as a potential buying opportunity, especially if market conditions improve.
Franklin Resources Inc. has recently bolstered its position in Infosys, increasing its holdings by 2.0% during the fourth quarter. Following this acquisition, Franklin now owns 11,501,533 shares of the company, valued at approximately $252,114,000. Other institutional investors have also shown interest in Infosys, with Sierra Ocean LLC purchasing a new stake worth about $29,000 and Brooklyn Investment Group acquiring shares valued at around $52,000.
Additionally, Wilmington Savings Fund Society FSB entered the market with a new position valued at approximately $57,000, while Farther Finance Advisors LLC has significantly increased its stake by 69.7%, now owning shares worth $68,000. GAMMA Investing LLC also raised its position by 14.2%, holding shares valued at $99,000. Currently, institutional investors hold 16.20% of Infosys's stock.
On the trading floor, Infosys stock traded down by $0.78, reaching $16.58 during the day. The trading volume was significantly higher than average, with 19,389,026 shares exchanged, compared to the usual 9,507,468. The company has a market capitalization of $68.66 billion, with a price-to-earnings (PE) ratio of 20.98, a price-to-earnings growth (PEG) ratio of 3.50, and a beta of 1.01.
In terms of price performance, Infosys has seen fluctuations over the past year, with a low of $16.04 and a high of $23.63. The company recently reported its quarterly earnings on January 16, 2025, announcing earnings per share of $0.19, meeting analysts' expectations. This figure reflects a slight increase from the previous year's earnings of $0.18 per share. Analysts project that Infosys will post earnings of $0.74 per share for the current year.
Market analysts have varied opinions on the stock. HSBC upgraded Infosys from a "hold" to a "buy" rating in December 2024, while StockNews.com recently downgraded it from a "buy" to a "hold" rating in March 2025. Hsbc Global Research also raised its rating from "hold" to "strong buy" in December 2024, while Guggenheim maintained a "neutral" rating in January 2025. In March 2025, CLSA upgraded the stock from a "hold" to an "outperform" rating. Currently, the consensus rating for Infosys shares stands at "Hold" with an average price target of $19.70.
As the market continues to react to these developments, investors are advised to stay informed about the company’s performance and broader market trends. The fluctuations in share price, alongside institutional investment activity, suggest that while there are short-term challenges, the long-term outlook for Infosys could still hold promise.
Investing in the stock market carries inherent risks, and prices can fluctuate due to various factors, including market conditions and economic developments. Prospective investors should conduct thorough research and consider their financial situation before making investment decisions.
In summary, while Infosys has faced a challenging period recently, marked by a significant drop in stock price, the company’s fundamentals remain strong. With a target price suggesting potential recovery and increasing institutional interest, investors may find opportunities amidst the current volatility.
