EPAM Systems (NYSE:EPAM) Board of Directors Initiates Stock Buyback Plan

Key Points

• EPAM Systems' Board of Directors has initiated a stock buyback plan worth $1.00 billion, representing up to 12.4% of its outstanding shares, indicating confidence in the stock’s value.
• The company reported earnings of $2.77 EPS for the previous quarter, beating estimates, and experienced an 18.0% increase in revenue year-over-year.
• Analysts have primarily rated EPAM Systems as a "Moderate Buy", with a consensus price target of $221.76.

EPAM Systems (NYSE:EPAM - Get Free Report) declared that its Board of Directors has initiated a stock repurchase plan on Tuesday, October 21st, RTT News reports. The company plans to repurchase $1.00 billion in shares. This repurchase authorization authorizes the information technology services provider to buy up to 12.4% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's board believes its stock is undervalued.

EPAM Systems Stock Performance

EPAM traded up $10.11 during trading on Tuesday, hitting $155.11. 988,980 shares of the stock were exchanged, compared to its average volume of 607,095. The firm has a market capitalization of $8.64 billion, a P/E ratio of 22.13, a PEG ratio of 2.10 and a beta of 1.65. EPAM Systems has a 1-year low of $138.15 and a 1-year high of $269.00. The stock has a fifty day moving average price of $158.44 and a two-hundred day moving average price of $163.98. The company has a quick ratio of 3.17, a current ratio of 3.17 and a debt-to-equity ratio of 0.01.

EPAM Systems (NYSE:EPAM - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The information technology services provider reported $2.77 EPS for the quarter, topping the consensus estimate of $2.61 by $0.16. The company had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.33 billion. EPAM Systems had a return on equity of 14.00% and a net margin of 7.91%.The firm's revenue was up 18.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.45 earnings per share. EPAM Systems has set its FY 2025 guidance at 10.960-11.120 EPS. Q3 2025 guidance at 2.980-3.060 EPS. As a group, sell-side analysts predict that EPAM Systems will post 8.9 earnings per share for the current year.

Analyst Ratings Changes

Several equities analysts have recently issued reports on the company. TD Cowen upgraded EPAM Systems from a "hold" rating to a "buy" rating and set a $205.00 price objective for the company in a research note on Monday, August 18th. Cowen upgraded EPAM Systems from a "hold" rating to a "buy" rating in a research note on Monday, August 18th. Wells Fargo & Company assumed coverage on EPAM Systems in a research note on Tuesday. They set an "overweight" rating and a $185.00 target price for the company. JPMorgan Chase & Co. decreased their target price on EPAM Systems from $205.00 to $201.00 and set an "overweight" rating for the company in a research note on Wednesday, August 20th. Finally, Wall Street Zen cut EPAM Systems from a "buy" rating to a "hold" rating in a research note on Saturday, September 13th. Fourteen equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, EPAM Systems currently has an average rating of "Moderate Buy" and a consensus price target of $221.76.

About EPAM Systems

EPAM Systems, Inc provides digital platform engineering and software development services worldwide. The company offers engineering services, including requirements analysis and platform selection, customization, cross-platform migration, implementation, and integration; infrastructure management services, such as software development, testing, performance tuning, deployment, maintenance, and support services.

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