Grid Dynamics (NASDAQ:GDYN) Cut to Hold at Zacks Research

Key Points

• Zacks Research downgraded Grid Dynamics from “strong buy” to “hold.” The broader analyst consensus is also “hold,” with four buys, two holds, and two sells, and an average price target of $9.40.
• Grid Dynamics shares fell $0.22 to $7.79, compared with a 52-week range of $5.11 to $10.21. The company recently exceeded quarterly expectations, reporting $0.11 in earnings per share versus $0.10 expected and $108.16 million in revenue versus $106.55 million forecast.
• Insiders have sold 14,409 shares worth about $115,625 over the past 90 days, while institutional investors and hedge funds collectively own 71.18% of the company.

Grid Dynamics (NASDAQ:GDYN - Get Free Report) was downgraded by investment analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report issued on Thursday, Zacks reports.

A number of other equities analysts have also recently weighed in on GDYN. Needham & Company LLC upped their price objective on shares of Grid Dynamics from $8.00 to $10.00 and gave the company a "buy" rating in a research report on Friday, July 31st. TD Cowen raised their target price on Grid Dynamics from $8.00 to $9.00 and gave the company a "buy" rating in a research note on Friday, July 31st. JPMorgan Chase & Co. lifted their target price on Grid Dynamics from $7.00 to $8.00 and gave the stock an "overweight" rating in a research report on Friday, July 31st. Finally, Weiss Ratings reiterated a "sell (d)" rating on shares of Grid Dynamics in a research note on Friday, July 31st. Four research analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, Grid Dynamics currently has an average rating of "Hold" and a consensus price target of $9.40.

Grid Dynamics Stock Performance

Shares of GDYN stock traded down $0.22 during trading hours on Thursday, reaching $7.79. The company had a trading volume of 676,468 shares, compared to its average volume of 804,880. Grid Dynamics has a twelve month low of $5.11 and a twelve month high of $10.21. The company has a market capitalization of $632.00 million, a P/E ratio of 389.69 and a beta of 0.97. The stock's fifty day simple moving average is $7.87 and its 200 day simple moving average is $6.79.

Grid Dynamics (NASDAQ:GDYN - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The company reported $0.11 earnings per share for the quarter, topping analysts' consensus estimates of $0.10 by $0.01. The firm had revenue of $108.16 million during the quarter, compared to analysts' expectations of $106.55 million. Grid Dynamics had a return on equity of 1.90% and a net margin of 0.68%. As a group, equities analysts expect that Grid Dynamics will post 0.20 earnings per share for the current year.

Insider Transactions at Grid Dynamics

In other Grid Dynamics news, COO Yury Gryzlov sold 4,849 shares of the stock in a transaction on Thursday, October 8th. The shares were sold at an average price of $8.00, for a total transaction of $38,792.00. Following the transaction, the chief operating officer directly owned 495,290 shares in the company, valued at $3,962,320. This represents a 0.97% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 14,409 shares of company stock valued at $115,625 over the last 90 days. Corporate insiders own 6.50% of the company's stock.

Institutional Investors Weigh In On Grid Dynamics

A number of institutional investors have recently modified their holdings of the stock. PNC Financial Services Group Inc. raised its stake in Grid Dynamics by 60.1% during the first quarter. PNC Financial Services Group Inc. now owns 8,315 shares of the company's stock valued at $47,000 after buying an additional 3,122 shares in the last quarter. Sequoia Financial Advisors LLC acquired a new position in shares of Grid Dynamics in the 2nd quarter worth approximately $75,000. Aaron Wealth Advisors LLC acquired a new position in shares of Grid Dynamics in the 1st quarter worth approximately $98,000. FNY Investment Advisers LLC bought a new stake in shares of Grid Dynamics in the 2nd quarter valued at approximately $99,000. Finally, Louisiana State Employees Retirement System bought a new stake in shares of Grid Dynamics in the 1st quarter valued at approximately $167,000. Institutional investors and hedge funds own 71.18% of the company's stock.

About Grid Dynamics

Grid Dynamics Holdings, Inc NASDAQ: GDYN is a digital engineering and technology services company that helps enterprises modernize their businesses through software development, cloud computing, data and analytics, and artificial intelligence. The company designs and builds technology platforms intended to improve operational efficiency, customer experiences, and the use of enterprise data.

Its services include digital commerce and customer experience solutions, cloud and data engineering, machine learning and artificial intelligence, application modernization, and software product development.

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