monday.com (NASDAQ:MNDY) Stock Dropped to "Hold" by Canaccord Genuity Group

Key Points

• Canaccord Genuity downgraded monday.com from “Buy” to “Hold,” setting a $90 price target, which implies 12.71% upside from the stock’s current price. Analysts overall have a consensus “Hold” rating and an average target of $106.26.
• Shares fell $8.08 to $79.85 on Monday. The move came despite quarterly earnings and revenue beating estimates, with revenue up 19.1% year over year.
• Investors remain concerned about the outlook: Q4 revenue guidance came in below analyst expectations, while the article cites slower-growth concerns tied to monday.com’s AI push.

monday.com (NASDAQ:MNDY - Get Free Report) was downgraded by investment analysts at Canaccord Genuity Group from a "buy" rating to a "hold" rating in a research note issued on Monday, Marketbeat reports. They currently have a $90.00 price target on the stock. Canaccord Genuity Group's price target suggests a potential upside of 12.71% from the company's current price.

Other research analysts also recently issued reports about the stock. Wolfe Research downgraded shares of monday.com from an "outperform" rating to a "peer perform" rating in a research report on Tuesday, August 11th. Needham & Company LLC reaffirmed a "buy" rating and issued a $125.00 target price on shares of monday.com in a report on Tuesday, October 27th. Zacks Research downgraded monday.com from a "strong-buy" rating to a "hold" rating in a report on Thursday, October 15th. Citigroup lowered their price target on monday.com from $154.00 to $132.00 and set a "buy" rating for the company in a report on Tuesday, August 11th. Finally, UBS Group reiterated a "buy" rating on shares of monday.com in a research report on Tuesday, October 27th. Ten analysts have rated the stock with a Buy rating and fifteen have assigned a Hold rating to the company's stock. Based on data from MarketBeat, monday.com has an average rating of "Hold" and a consensus price target of $106.26.

monday.com Price Performance

MNDY stock traded down $8.08 during midday trading on Monday, reaching $79.85. The company had a trading volume of 2,527,821 shares, compared to its average volume of 1,756,987. monday.com has a 1-year low of $57.50 and a 1-year high of $169.76. The stock has a 50 day moving average price of $90.72 and a 200-day moving average price of $83.05. The company has a market capitalization of $4.09 billion, a price-to-earnings ratio of 33.98, a price-to-earnings-growth ratio of 1.98 and a beta of 1.06.

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

Insider Activity at monday.com

In other news, Director Aviad Eyal sold 2,000 shares of the stock in a transaction on Tuesday, October 20th. The stock was sold at an average price of $100.04, for a total value of $200,080.00. Following the completion of the transaction, the director directly owned 203,455 shares in the company, valued at approximately $20,353,638.20. This represents a 0.97% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 22.30% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in MNDY. Renaissance Technologies LLC lifted its stake in shares of monday.com by 93.3% in the first quarter. Renaissance Technologies LLC now owns 2,181,990 shares of the company's stock worth $150,797,000 after acquiring an additional 1,052,900 shares during the period. RPD Fund Management LLC acquired a new position in shares of monday.com during the first quarter valued at about $17,529,000. Bank of America Corp DE boosted its position 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 purchasing an additional 49,002 shares in the last quarter. Russell Investments Group Ltd. boosted 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 worth $13,946,000 after purchasing an additional 174,630 shares in the last quarter. Finally, Swiss National Bank grew its stake in shares of monday.com by 28.6% in 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. Institutional investors and hedge funds own 73.70% of the company's stock.

monday.com News Summary

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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