Wipro Limited [WIT] is 47.79% higher this YTD. Is it still time to buy?

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Wipro Limited [NYSE: WIT] gained 0.85% or 0.07 points to close at $8.35 with a heavy trading volume of 2006230 shares. The company report on July 22, 2021 that Wipro launches FieldX, after sales and service solution on ServiceNow.

Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO), a leading global information technology, consulting and business process services company, launched FieldX, a cloud-based end-to-end digital service lifecycle automation solution built on ServiceNow’s Now Platform®. Using FieldX, manufacturing organizations can enhance and scale-up their after-sales customer service operations while reducing costs.

Built as part of the ServiceNow Partner Industry Solution Program, FieldX integrates the customer service and field-service management capabilities of the Now Platform with Wipro’s Internet of Things (IoT) and Augmented Reality (AR) platforms. By digitizing and automating departmental and cross-enterprise workflows, FieldX allows manufacturers to scale-up operations with reduced costs.

It opened the trading session at $8.37, the shares rose to $8.47 and dropped to $8.35, the range by which the price of stock traded the whole day. The daily chart for WIT points out that the company has recorded 26.90% gains over the past six months. However, it is still -116.32% lower than its most recent low trading price.

If we look at the average trading volume of 1.73M shares, WIT reached to a volume of 2006230 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Wipro Limited [WIT]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for WIT shares is $5.35 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on WIT stock is a recommendation set at 4.50. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Bernstein have made an estimate for Wipro Limited shares, keeping their opinion on the stock as Mkt Perform, with their previous recommendation back on May 26, 2021. The new note on the price target was released on April 16, 2021, representing the official price target for Wipro Limited stock.

The Average True Range (ATR) for Wipro Limited is set at 0.17, with the Price to Sales ratio for WIT stock in the period of the last 12 months amounting to 5.21. The Price to Book ratio for the last quarter was 5.76, with the Price to Cash per share for the same quarter was set at 0.80. Price to Free Cash Flow for WIT in the course of the last twelve months was 27.02 with Quick ratio for the last quarter at 2.20.

Trading performance analysis for WIT stock

Wipro Limited [WIT] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 3.34. With this latest performance, WIT shares gained by 3.47% in over the last four-week period, additionally plugging by 26.90% over the last 6 months – not to mention a rise of 113.56% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for WIT stock in for the last two-week period is set at 66.61, with the RSI for the last a single of trading hit 72.35, and the three-weeks RSI is set at 63.70 for Wipro Limited [WIT]. The present Moving Average for the last 50 days of trading for this stock 7.86, while it was recorded at 8.21 for the last single week of trading, and 6.48 for the last 200 days.

Wipro Limited [WIT]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Wipro Limited [WIT] shares currently have an operating margin of +19.95 and a Gross Margin at +31.68. Wipro Limited’s Net Margin is presently recorded at +17.43.

Return on Total Capital for WIT is now 18.78, given the latest momentum, and Return on Invested Capital for the company is 18.79. Return on Equity for this stock inclined to 19.44, with Return on Assets sitting at 13.10. When it comes to the capital structure of this company, Wipro Limited [WIT] has a Total Debt to Total Equity ratio set at 18.90. Additionally, WIT Total Debt to Total Capital is recorded at 15.89, with Total Debt to Total Assets ending up at 12.57. Long-Term Debt to Equity for the company is recorded at 3.79, with the Long-Term Debt to Total Capital now at 3.19.

Reflecting on the efficiency of the workforce at the company, Wipro Limited [WIT] managed to generate an average of $539,730 per employee. Receivables Turnover for the company is 4.10 with a Total Asset Turnover recorded at a value of 0.75.Wipro Limited’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.20 and a Current Ratio set at 2.20.

Wipro Limited [WIT]: An earnings per share (EPS) analysis

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for WIT. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Wipro Limited go to 9.00%.

An analysis of insider ownership at Wipro Limited [WIT]

There are presently around $1,149 million, or 2.50% of WIT stock, in the hands of institutional investors. The top three institutional holders of WIT stocks are: BLACKROCK INC. with ownership of 15,944,386, which is approximately 35.403% of the company’s market cap and around 79.00% of the total institutional ownership; AQR CAPITAL MANAGEMENT LLC, holding 14,382,007 shares of the stock with an approximate value of $120.09 million in WIT stocks shares; and VANGUARD GROUP INC, currently with $113.42 million in WIT stock with ownership of nearly 1.345% of the company’s market capitalization.

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Positions in Wipro Limited stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 105 institutional holders increased their position in Wipro Limited [NYSE:WIT] by around 22,031,179 shares. Additionally, 70 investors decreased positions by around 15,834,375 shares, while 22 investors held positions by with 99,741,013 shares. The mentioned changes placed institutional holdings at 137,606,567 shares, according to the latest SEC report filing. WIT stock had 27 new institutional investments in for a total of 2,469,424 shares, while 20 institutional investors sold positions of 885,640 shares during the same period.

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