Endava (NYSE:DAVA) Reaches New 12-Month Low on Disappointing Earnings

Key Points

• Endava PLC shares hit a new 12-month low, trading at $10.40, following the announcement of disappointing quarterly earnings that saw an EPS of $0.22, significantly below analysts' expectations of $0.32.
• Analyst ratings were mixed, with several brokerages adjusting their ratings and target prices, including Needham & Company, which raised its target to $20.00, while Cowen downgraded it from a "buy" to a "hold."
• Institutional investors have shown increased activity in Endava, with notable stakes acquired by firms like GAMMA Investing LLC and EverSource Wealth Advisors LLC, which grew their holdings significantly in recent quarters.

Endava PLC Sponsored ADR (NYSE:DAVA - Get Free Report) reached a new 52-week low during mid-day trading on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $10.75 and last traded at $10.40, with a volume of 213109 shares. The stock had previously closed at $14.38.

The company reported $0.22 EPS for the quarter, missing analysts' consensus estimates of $0.32 by ($0.10). Endava had a return on equity of 3.59% and a net margin of 2.33%. Endava has set its FY 2026 guidance at 1.110-1.270 EPS. Q1 2026 guidance at 0.230-0.26 EPS.

Analyst Ratings Changes

A number of brokerages have commented on DAVA. Wall Street Zen cut Endava from a "buy" rating to a "hold" rating in a research report on Saturday, August 16th. Needham & Company LLC increased their target price on Endava from $18.00 to $20.00 and gave the stock a "buy" rating in a research report on Tuesday, June 10th. Guggenheim cut their target price on Endava from $25.00 to $20.00 and set a "buy" rating for the company in a research report on Thursday, August 28th. Cowen cut Endava from a "buy" rating to a "hold" rating in a research report on Wednesday, May 14th. Finally, JPMorgan Chase & Co. cut their target price on Endava from $18.00 to $17.00 and set a "neutral" rating for the company in a research report on Wednesday, August 20th. Three investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, the company has an average rating of "Hold" and an average target price of $24.56.

Hedge Funds Weigh In On Endava

Institutional investors have recently added to or reduced their stakes in the company. Quantbot Technologies LP purchased a new position in Endava during the 1st quarter valued at approximately $25,000. GAMMA Investing LLC grew its holdings in Endava by 81.0% during the 2nd quarter. GAMMA Investing LLC now owns 1,683 shares of the company's stock valued at $26,000 after buying an additional 753 shares in the last quarter. EverSource Wealth Advisors LLC grew its holdings in Endava by 733.6% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,909 shares of the company's stock valued at $29,000 after buying an additional 1,680 shares in the last quarter. State of Wyoming grew its holdings in Endava by 112.7% during the 1st quarter. State of Wyoming now owns 2,367 shares of the company's stock valued at $46,000 after buying an additional 1,254 shares in the last quarter. Finally, Smartleaf Asset Management LLC grew its holdings in Endava by 23.5% during the 1st quarter. Smartleaf Asset Management LLC now owns 3,620 shares of the company's stock valued at $72,000 after buying an additional 689 shares in the last quarter. Hedge funds and other institutional investors own 62.23% of the company's stock.

Endava Price Performance

The firm has a market cap of $640.78 million, a PE ratio of 28.91 and a beta of 1.13. The firm has a fifty day simple moving average of $13.84 and a two-hundred day simple moving average of $17.27. The company has a debt-to-equity ratio of 0.21, a quick ratio of 2.18 and a current ratio of 2.18.

Endava Company Profile

Endava plc provides technology services for clients in the consumer products, healthcare, mobility, and retail verticals in North America, Europe, the United Kingdom, and internationally. It offers ideation and production services in the payments and financial services, telecommunications, media, and technology verticals; and business analysis, data analytics, program management, digital product strategy, private equity value enhancement, IT strategy, architecture, extended reality, machine learning and artificial intelligence, product design, and user experience and visual design services.

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