Foster Group Inc., a prominent investment company, recently acquired a significant position in Wipro Limited (NYSE:WIT) during the second quarter of this year, as reported in its latest 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 36,102 shares of Wipro’s stock, which were valued at approximately $170,000.
Wipro (NYSE:WIT) announced its earnings results most recently on Thursday, July 13th. As an information technology services provider, Wipro reported earnings per share of $0.06 for the quarter. Unfortunately, this figure fell short of the consensus estimate of $0.07 by ($0.01). Despite the missed estimate, Wipro garnered revenue amounting to $2.78 billion during the same period, in comparison to the consensus estimate of $2.79 billion.
Analyzing its financial performance further, it is worth noting that Wipro achieved a net margin of 12.70%, showcasing its ability to generate profit relative to its revenue. Additionally, the company boasted a return on equity rate of 15.94%. These figures help demonstrate Wipro’s steady profitability and efficiency in managing shareholders’ investments.
In terms of overall operations, Wipro Limited operates globally as an information technology (IT), consulting, and business process services company. Its services encompass three primary segments: IT Services, IT Products, and India State Run Enterprise Services (ISRE). Within these segments are offerings such as digital strategy advisory services for enterprises seeking guidance on technology implementation or enhancement; customer-centric design services that aim to optimize user experience; technology and IT consulting for companies looking to align their business strategies with technological advancements; custom application design services tailored to meet individual enterprise needs; development and maintenance solutions to ensure smooth functioning of applications; systems integration expertise for seamless collaboration between various platforms and technologies; package implementation for efficient software installation and integration; cloud and infrastructure solutions to support businesses in migrating to the cloud or upgrading their existing infrastructure; and business process services that streamline operations for improved efficiency.
Wipro Ltd. also provides specialized services such as cloud computing, mobility, and analytics solutions, catering to the growing demand for digital transformation among businesses. Furthermore, they offer research and development capabilities along with hardware and software design services, contributing to innovation across diverse industries.
Looking ahead, research analysts anticipate that Wipro Limited will post earnings per share (EPS) of 0.26 for the entirety of this year. This projection underscores optimism in Wipro’s ability to maintain its financial performance amid a dynamic market landscape.
Overall, Foster Group Inc.’s acquisition of a significant position in Wipro Limited showcases the trust placed in the company’s potential for growth and profitability. As Wipro continues to expand its reach globally and provide comprehensive IT services across various sectors, it solidifies its position as a prominent player in the information technology industry.
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Major Hedge Funds and Institutional Investors Show Interest in Wipro Limited: Analysts Remain Cautious
Wipro Limited, a prominent information technology services provider, has recently attracted the attention of several hedge funds and institutional investors. Raymond James & Associates, for instance, witnessed a 5.2% increase in its holdings in Wipro during the first quarter of this year. The additional acquisition of 5,891 shares boosted their ownership to 118,772 shares valued at approximately $916,000.
Similarly, American Century Companies Inc., another institutional investor in Wipro, experienced a 22.8% growth in its position during the same period. Having purchased an extra 36,907 shares, their total ownership now stands at 199,067 shares worth around $1.54 million.
PNC Financial Services Group Inc., on the other hand, saw a more modest increase of 4.9% in their holdings. With an additional purchase of 2,234 shares during the first quarter, their stake now amounts to 47,432 shares valued at roughly $366,000.
BlackRock Inc., one of the largest asset management firms globally, also showed interest in Wipro by acquiring an additional 509,102 shares—an increase of 3.3%. Their current ownership stands at an impressive 16,033,590 shares valued at approximately $123.6 million.
Lastly,Dimensional Fund Advisors LP expanded its position by 17.1% during the first quarter as well. With an additional purchase of 14,576 shares,the fund now holds a total of99 ,589shares worth around$768 ,000.
Collectively,hedge funds and institutional investors account for approximately 2.36%of Wipro’s stock.We can evidently conclude that there is significant attraction among major financial players towards this company.
Wipro’s stock opened at $5.22 on September17th.The average price over fifty days is reported as $4.98,and over two-hundred days stands at $4.76.Moving on, the company’s debt-to-equity ratio is 0.09,signifying a relatively low level of financial leverage.The current ratio of Wipro is 1.72,indicating that it has enough current assets to cover short-term liabilities quickly. Similarly, the quick ratio of 1.71 offers reassurance in terms of liquidity.
As for market capitalization,Wipro is currently valued at $28.61 billion.Moreover,the stock has a price-to-earnings(P/E)ratio of20.08,suggesting that investors are willing to pay $20.08 for every dollar of earnings.Furthermore,the PEG ratio-which considers both P/Eand expected growth rates-ofWipro stands at 2.24.This implies that investors expect moderate growth in the company’s stock value relative to its earnings.
In terms of volatility,Wipro boasts a beta coefficient of0.81.This indicates that it is less volatile than the overall market.With a one-year low of$4.32 and a one-year highof$5.31,Wipro shares have experienced relatively stable movement within this trading range.
In recent times,Wipro has attracted attention from analysts and researchers alike.The Goldman Sachs Group started coverage on Wipro and provideda “sell”rating with a target price of $4.70.JPMorgan Chase & Co.also initiated coverageand issued an “underweight” rating with a target priceof$4.30.StockNews.com joined the bandwagon by settinga “hold” rating for the company.
When considering all available ratings from these research reports,it seems that four investment analysts have rated Wipro’s stock as “sell,”whileonehasratedit as “hold.” The average rating derived from Bloomberg stands at “Reduce,”with an average price target consensus pegged at $4.30
Overall, Wipro Limited continues to attract interest from hedge funds and institutional investors due to its strong position and potential for growth. However, analysts remain cautious about its future performance, with a majority of ratings suggesting a downward trend for the stock. Investors should carefully consider these factors before engaging in transactions related to Wipro’s shares.
