monday.com (NASDAQ:MNDY) Stock Bumped Down to Hold by Needham & Company LLC

Key Points

• Needham downgraded monday.com from Buy to Hold. The broader analyst consensus is also Hold, with a $106.26 average price target.
• Quarterly results topped estimates: EPS was $2.14 versus $1.41 expected, and revenue reached $377.54 million, up 19.1% year over year. However, Q4 revenue guidance of $380 million to $382 million fell short of expectations, fueling concerns about slower growth.
• Shares fell $8.08 to $79.85 in Monday trading.

monday.com (NASDAQ:MNDY - Get Free Report) was downgraded by investment analysts at Needham & Company LLC from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Monday, Briefing.com reports.

Several other equities analysts also recently weighed in on MNDY. Barclays downgraded shares of monday.com from an "overweight" rating to an "equal weight" rating and set a $100.00 price target on the stock. in a research note on Monday, October 12th. Jefferies Financial Group reiterated a "hold" rating and issued a $95.00 price objective on shares of monday.com in a report on Monday, August 10th. Capital One Financial downgraded shares of monday.com from an "overweight" rating to an "equal weight" rating and set a $95.00 price objective for the company. in a report on Monday, August 10th. Wall Street Zen raised shares of monday.com from a "hold" rating to a "buy" rating in a research note on Sunday, November 1st. Finally, BTIG Research restated a "buy" rating and set a $105.00 target price on shares of monday.com in a report on Thursday, October 29th. Ten analysts have rated the stock with a Buy rating and fifteen have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $106.26.

monday.com Price Performance

NASDAQ MNDY traded down $8.08 during mid-day trading on Monday, hitting $79.85. The stock had a trading volume of 2,527,821 shares, compared to its average volume of 1,756,987. The firm's 50 day moving average is $90.72 and its 200 day moving average is $83.05. monday.com has a twelve month low of $57.50 and a twelve month high of $169.76. The stock has a market capitalization of $4.09 billion, a price-to-earnings ratio of 33.98, a PEG ratio of 1.98 and a beta of 1.06.

monday.com (NASDAQ:MNDY - Get Free Report) last announced its earnings results on Monday, November 9th. The company reported $2.14 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.41 by $0.73. monday.com had a net margin of 8.87% and a return on equity of 9.09%. The company had revenue of $377.54 million for the quarter, compared to analysts' expectations of $369.17 million. During the same quarter in the previous year, the company posted $1.16 EPS. The firm's quarterly revenue was up 19.1% on a year-over-year basis. As a group, equities research analysts expect that monday.com will post 2.34 earnings per share for the current year.

Insider Activity

In related news, Director Aviad Eyal sold 2,000 shares of the company's stock in a transaction dated Tuesday, October 20th. The shares were sold at an average price of $100.04, for a total value of $200,080.00. Following the completion of the sale, the director owned 203,455 shares of the company's stock, valued at approximately $20,353,638.20. This represents a 0.97% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 22.30% of the stock is owned by company insiders.

Hedge Funds Weigh In On monday.com

A number of institutional investors have recently bought and sold shares of MNDY. Renaissance Technologies LLC boosted its holdings in monday.com by 93.3% in the 1st quarter. Renaissance Technologies LLC now owns 2,181,990 shares of the company's stock valued at $150,797,000 after purchasing an additional 1,052,900 shares during the last quarter. RPD Fund Management LLC acquired a new stake in shares of monday.com during the 1st quarter worth approximately $17,529,000. Bank of America Corp DE increased its holdings in shares of monday.com by 33.6% during the 1st quarter. Bank of America Corp DE now owns 194,635 shares of the company's stock worth $13,451,000 after buying an additional 49,002 shares during the last quarter. Russell Investments Group Ltd. raised its position in shares of monday.com by 4,477.7% during the 3rd quarter. Russell Investments Group Ltd. now owns 178,530 shares of the company's stock valued at $13,946,000 after buying an additional 174,630 shares during the period. Finally, Swiss National Bank raised its position in shares of monday.com by 28.6% during the 1st quarter. Swiss National Bank now owns 159,100 shares of the company's stock valued at $10,995,000 after buying an additional 35,400 shares during the period. 73.70% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting monday.com

Here are the key news stories impacting monday.com this week:

• Positive Sentiment: Q3 results topped estimates: earnings were $2.14 per share versus consensus of $1.41, while revenue of $377.54 million exceeded expectations of $369.17 million and grew 19.1% year over year. Monday.com Tops Q3 Earnings and Revenue Estimates
• Negative Sentiment: Q4 revenue guidance of $380 million to $382 million fell short of analysts’ expectations, raising concerns that growth is slowing. The outlook overshadowed the quarterly beat. monday.com Expects Q4 Revenue Range
• Negative Sentiment: Reports say monday.com’s push toward AI is creating near-term headwinds and contributing to slower growth expectations, adding to investor concerns about the outlook. monday.com Warns of Slower Growth as AI Shift Brings Near-Term Headwinds
• Negative Sentiment: Put-option activity was unusually high, with 14,663 puts acquired—about 550% above the average volume. This may indicate increased hedging or bearish positioning, though options activity alone does not establish investor direction.

monday.com Company Profile

monday.com Ltd. is a software company that provides a cloud-based platform for organizations to plan, manage and track work. Founded in 2012 as dapulse, the company adopted the monday.com name in 2017.

Its products include monday work management, monday CRM, monday dev and monday service. The platform offers tools for project and workflow management, customer relationship management, software development and service operations, with features for collaboration, automation and reporting.

Headquartered in Tel Aviv, Israel, monday.com serves customers across a range of industries and geographies.

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