Infosys shares will be in focus heading into Monday's trading session after a bizarre session on the New York Stock Exchange on Friday that saw the company's American Depositary Receipts (ADRs) spiking up to 40% before triggering a halt.
The ADRs, which normally trade in a stable range, skyrocketed from previous close of roughly $19.17 to a 52-week high of $30 within minutes of the opening bell.
The surge triggered multiple "Limit Up-Limit Down" (LULD) circuit breakers, forcing the exchange to temporarily suspend trading.
The rapid surge in ADR took place without there being any fundamental news point or development in and around Infosys.
Although the Infosys ADRs are back to normal levels, the entire chaos caused on Friday's session forced the company to issue a statement, where it admitted there was no fundamental news that drove the price higher.
Infosys ADR Spike: What Led To The 50% Surge? Company Issues Clarification — Details InsideIn a regulatory filing, the IT major confirmed that the volatility triggered trading pauses but stated, "There are no material events that require disclosure".
The dramatic price action in Infosys' ADR was in stark contrast to the stock's performance in India, where shares closed with a modest gain of 0.7% at Rs 1,638 on the NSE on Friday.
Out of 51 analysts tracking the company, 37 maintain a 'buy' rating, 12 recommend a 'hold,' and two suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 5.4%.
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