There is no doubt that Wipro Limited (WIT) ticks all the boxes.

Wipro Limited (NYSE: WIT) stock fell -2.04% on Friday to $4.81 against a previous-day closing price of $4.91. With 3.61 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.74 million shares. During the session, the Information Technology Services company that operates in wider Technology sector, reached to the highest price of $4.8900 whereas the lowest price it dropped to was $4.8100. The 52-week range on WIT shows that it touched its highest point at $9.96 and its lowest point at $4.91 during that stretch. It currently has a 1-year price target of $5.04. With its current market cap of 27.72 billion, WIT has annualized dividend of $0.01 while the current yield stands at 0.27%. Beta for the stock currently stands at 0.84.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of WIT was down-trending over the past week, with a drop of -5.13%, but this was down by -7.32% over a month. Three-month performance dropped to -11.25% while six-month performance fell -38.73%. The stock lost -49.32% in the past year, while it has lost -50.72% so far this year. A look at the trailing 12-month EPS for WIT yields 0.26 with Next year EPS estimates of 0.33. For the next quarter, that number is 0.07. This implies an EPS growth rate of 16.90% for this year and 15.90% for next year. EPS is expected to grow by 9.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 17.90%.

Float and Shares Shorts:

At present, 5.47 billion WIT shares are outstanding with a float of 5.47 billion shares on hand for trading. On Aug 30, 2022, short shares totaled 13.13 million, which was 0.24% higher than short shares on Jul 28, 2022. In addition to Mr. Rishad Azim Hasham Premji Jr. as the firm’s Exec. Chairman, Mr. Thierry Delaporte serves as its MD, CEO, Director & Member of Exec. Board.

Institutional Ownership:

Through their ownership of 2.21% of WIT’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 1.54% of WIT, in contrast to 0.65% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in WIT with 0.22% of the stake, The Vanguard Group, Inc. holds 11,965,795 shares worth 11,965,795. A second-largest stockholder of WIT, SSgA Funds Management, Inc., holds 9,305,932 shares, controlling over 0.17% of the firm’s shares. Aperio Group LLC is the third largest shareholder in WIT, holding 8,006,656 shares or 0.15% stake. With a 0.11% stake in WIT, the Vanguard Total International Stoc is the largest stakeholder. A total of 5,909,548 shares are owned by the mutual fund manager. The Vanguard Emerging Markets Stock I, which owns about 0.07% of WIT stock, is the second-largest Mutual Fund holder. It holds 3,751,738 shares valued at 18.8 million. Nordea 2 – Global Responsible Enh holds 0.07% of the stake in WIT, owning 3,751,134 shares worth 18.79 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2022, WIT reported revenue of $215.29B and operating income of $30.86B. Over the past year, revenue came in at $823.70B while operating income stood at $137.46B. It generated $25.64B net income for the quarter, which came to $115.51B over the last twelve months. The EBITDA in the recently reported quarter was $42.16B and diluted EPS was $4.67. EBITDA for the full year was $177.60B.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for WIT since 41 analysts follow the stock currently. There are 6 analysts who recommend BUY ratings, while 10 suggest SELL ratings. Of the remaining analysts, 14 believe that the stock is worth HOLDING, 4 give it an OVERWEIGHT rating, and 7 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With WIT analysts setting a high price target of $7.03 and a low target of $4.10, the average target price over the next 12 months is $5.32. Based on these targets, WIT could surge 46.15% to reach the target high and fall by -14.76% to reach the target low. Reaching the average price target will result in a growth of 10.6% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. WIT will report FY 2023 earnings on 04/27/2023. Analysts have provided yearly estimates in a range of $0.30 being high and $0.24 being low. For WIT, this leads to a yearly average estimate of $0.27. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Wipro Limited surprised analysts by -$0.01 when it reported $0.06 EPS against a consensus estimate of $0.07. The surprise factor in the prior quarter was -$0.00. Based on analyst estimates, the high estimate for the next quarter is $0.07 and the low estimate is $0.06. The average estimate for the next quarter is thus $0.07.

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