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This IT Stock Is Down More Than 70% From Highs, Offers 6.37% Dividend Yield
Oracle Financial Services Software has seen its shares tank more than 71% from 52-week highs in line with most other IT companies. The company is one of the top players in banking and insurance related products and services.
How the shares of Oracle Financial Services has moved?
The stock during the course of the last 52-weeks has hit a high of Rs 5144.60 on the Bombay Stock Exchange. On the same exchange, the shares of the company now trade at Rs 2983, which means a drop of slightly more than 71% from 52-week highs. The shares are also now trading very close to the 52-week lows of Rs 2922.
Reasonably good financial performance
The financial performance for the quarter ending June was not a bad quarter. However, there are worries that going ahead, given the prediction of recession in the US, things could be tough for IT companies. Revenue for the quarter was Rs. 1403 Crore, up 10% quarter-over-quarter and marginally up year-over-year. Operating income for the quarter was Rs. 635 Crore, up 20% quarter-over quarter. During the quarter ending June 30, 2022, the company signed license deals of $26.2 million during the quarter with customers in 29 countries.
Solid on dividend yields
The stock of Oracle Financial Services offers a solid dividend yield of 6.37%, based on the current market price of Rs 2983. For the year ending March 2022 Oracle Financial Services Software has declared an equity dividend of 3800.00% amounting to Rs 190 per share. At the current share price of Rs 2983 this results in a dividend yield of 6.37%. We do not believe that the company would reduce the dividends in the coming years. The margins of the company are strong and the depreciation of the rupee will help.
Overall, IT stocks have seen heavy selling pressure as investors gradually move away from IT stocks into banking stocks. However, the sharp knock in frontline IT stocks could offer good opportunities for buying.
