Is Buying Stock Like Infosys Ltd ADR Good Idea After Today’s Bearish Options Activity?

 Is Buying Stock Like Infosys Ltd ADR Good Idea After Today's Bearish Options Activity?

In today’s session Infosys Ltd ADR (INFY) recorded an unusually high (110) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the January, 2017 put, expecting serious INFY decrease. With 110 contracts traded and 30354 open interest for the Jan, 17 contract, it seems this is a quite bearish bet. The option with symbol: INFY170120P00013750 closed last at: $0.35 or 22.2% down. About 718,800 shares traded hands. Infosys Ltd ADR (NYSE:INFY) has declined 24.28% since April 26, 2016 and is downtrending. It has underperformed by 29.54% the S&P500.

Analysts await Infosys Ltd ADR (NYSE:INFY) to report earnings on January, 12. They expect $0.23 earnings per share, 0.00% or $0.00 from last year’s $0.23 per share. INFY’s profit will be $517.34 million for 15.74 P/E if the $0.23 EPS becomes a reality. After $0.24 actual earnings per share reported by Infosys Ltd ADR for the previous quarter, Wall Street now forecasts -4.17% negative EPS growth.

Infosys Ltd ADR (NYSE:INFY) Ratings Coverage

Out of 11 analysts covering Infosys (NYSE:INFY), 2 rate it a “Buy”, 1 “Sell”, while 8 “Hold”. This means 18% are positive. Infosys has been the topic of 13 analyst reports since July 24, 2015 according to StockzIntelligence Inc. On Tuesday, August 9 the stock rating was downgraded by HSBC to “Hold”. Goldman Sachs upgraded the stock to “Buy” rating in Thursday, May 26 report. The rating was maintained by Susquehanna on Monday, October 12 with “Neutral”. The rating was upgraded by Credit Suisse to “Outperform” on Thursday, January 14. The stock of Infosys Ltd ADR (NYSE:INFY) has “Neutral” rating given on Monday, July 18 by Nomura. Susquehanna maintained it with “Neutral” rating and $19 target price in Tuesday, September 1 report. Societe Generale upgraded the stock to “Hold” rating in Monday, September 28 report. The stock of Infosys Ltd ADR (NYSE:INFY) earned “Neutral” rating by Sterne Agee CRT on Thursday, December 17. The rating was upgraded by Jefferies on Wednesday, August 26 to “Underperform”. The stock has “Outperform” rating given by Macquarie Research on Friday, July 24.

According to Zacks Investment Research, “Infosys Limited defines, designs and delivers technology-enabled business solutions. It provides business and technology consulting, application services, systems integration, product engineering, custom software development, maintenance, re-engineering, independent testing and validation services, IT infrastructure services and business process outsourcing. It serves aerospace and defense, airlines, automotive, communication services, consumer packaged goods, education, energy, financial services, healthcare, high technology, hospitality and leisure, industrial manufacturing, insurance, life sciences, logistics and distribution, media and entertainment, publishing, resources, retail and utilities industries. Infosys Limited, formerly known as Infosys Technologies Limited, is headquartered in Bengaluru, India.”

Infosys Limited is engaged in consulting, technology, outsourcing and next-generation services. The company has a market cap of $32.57 billion. The Company, along with its subsidiaries, provides business information technology services comprising application development and maintenance, independent validation, infrastructure management, engineering services comprising product engineering and life cycle solutions and business process management; consulting and systems integration services comprising consulting, enterprise solutions, systems integration and advanced technologies; products, business platforms and solutions to accelerate intellectual property-led innovation, including Finacle, its banking solution, and offerings in the areas of Analytics, Cloud and Digital Transformation. It has a 16.09 P/E ratio.

More news for Infosys Ltd ADR (NYSE:INFY) were recently published by: Marketwatch.com, which released: “/quotes/zigman/3870025/realtime” on October 09, 2009. Quotes.Wsj.com‘s article titled: “DOW JONES, A NEWS CORP COMPANY” and published on February 13, 2011 is yet another important article.

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