EPAM Systems (NYSE:EPAM) Shares Down 5.6% Following Analyst Downgrade

Key Points

• EPAM Systems shares dropped 5.6% after Morgan Stanley downgraded the stock's price target from $210.00 to $175.00, maintaining an equal weight rating.
• Despite the decline, the stock has multiple ratings, with thirteen analysts giving it a Buy rating and a consensus price target of $224.06.
• The company reported quarterly earnings of $2.77 per share, exceeding expectations, while also guiding for expected EPS between 10.960 and 11.120 for FY 2025.

EPAM Systems, Inc. (NYSE:EPAM - Get Free Report)'s share price fell 5.6% on Wednesday after Morgan Stanley lowered their price target on the stock from $210.00 to $175.00. Morgan Stanley currently has an equal weight rating on the stock. EPAM Systems traded as low as $156.04 and last traded at $155.82. 425,448 shares were traded during trading, a decline of 43% from the average session volume of 750,469 shares. The stock had previously closed at $165.02.

Other analysts have also issued research reports about the company. Deutsche Bank Aktiengesellschaft initiated coverage on EPAM Systems in a report on Thursday, July 17th. They issued a "hold" rating and a $171.00 target price for the company. Barclays raised their target price on EPAM Systems from $200.00 to $215.00 and gave the company an "overweight" rating in a report on Monday, May 12th. Cowen upgraded EPAM Systems from a "hold" rating to a "buy" rating in a report on Monday, August 18th. TD Cowen raised EPAM Systems from a "hold" rating to a "buy" rating and set a $205.00 price target on the stock in a research report on Monday, August 18th. Finally, Wall Street Zen raised EPAM Systems from a "hold" rating to a "buy" rating in a research report on Saturday, August 2nd. Thirteen research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat.com, EPAM Systems presently has an average rating of "Moderate Buy" and a consensus price target of $224.06.

Institutional Investors Weigh In On EPAM Systems

A number of institutional investors and hedge funds have recently modified their holdings of the company. CYBER HORNET ETFs LLC bought a new position in shares of EPAM Systems during the second quarter worth approximately $27,000. Sound Income Strategies LLC acquired a new position in shares of EPAM Systems during the second quarter worth $29,000. MUFG Securities EMEA plc bought a new position in EPAM Systems during the second quarter worth $30,000. Sentry Investment Management LLC bought a new position in EPAM Systems during the first quarter worth $33,000. Finally, CX Institutional bought a new stake in EPAM Systems in the first quarter valued at $42,000. 91.58% of the stock is owned by institutional investors.

EPAM Systems Trading Down 5.2%

The company has a quick ratio of 3.17, a current ratio of 3.17 and a debt-to-equity ratio of 0.01. The stock has a market capitalization of $8.71 billion, a P/E ratio of 22.25, a P/E/G ratio of 2.39 and a beta of 1.66. The firm's 50 day simple moving average is $167.45 and its two-hundred day simple moving average is $171.00.

EPAM Systems (NYSE:EPAM - Get Free Report) last issued its quarterly earnings data on Thursday, August 7th. The information technology services provider reported $2.77 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.61 by $0.16. The firm had revenue of $1.35 billion during the quarter, compared to analysts' expectations of $1.33 billion. EPAM Systems had a net margin of 7.91% and a return on equity of 14.00%. The business's revenue was up 18.0% on a year-over-year basis. During the same period last year, the company earned $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, analysts forecast that EPAM Systems, Inc. will post 8.9 earnings per share for the current fiscal year.

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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