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 was down 5.6% on Wednesday after Wall Street Zen downgraded the stock from a buy rating to a hold rating. The company traded as low as $156.04 and last traded at $155.82. Approximately 425,448 shares traded hands during trading, a decline of 43% from the average daily volume of 750,469 shares. The stock had previously closed at $165.02.

A number of other research analysts also recently weighed in on the stock. Cowen raised shares of EPAM Systems from a "hold" rating to a "buy" rating in a research report on Monday, August 18th. JPMorgan Chase & Co. cut their price objective on shares of EPAM Systems from $205.00 to $201.00 and set an "overweight" rating for the company in a report on Wednesday, August 20th. Deutsche Bank Aktiengesellschaft assumed coverage on shares of EPAM Systems in a report on Thursday, July 17th. They issued a "hold" rating and a $171.00 price objective for the company. Morgan Stanley cut their price objective on shares of EPAM Systems from $210.00 to $175.00 and set an "equal weight" rating for the company in a report on Tuesday, September 9th. Finally, TD Cowen raised shares of EPAM Systems from a "hold" rating to a "buy" rating and set a $205.00 price objective for the company in a report on Monday, August 18th. Thirteen investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, EPAM Systems has an average rating of "Moderate Buy" and an average target price of $224.06.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. CYBER HORNET ETFs LLC purchased a new stake in shares of EPAM Systems during the 2nd quarter valued at $27,000. Sound Income Strategies LLC purchased a new stake in shares of EPAM Systems during the 2nd quarter valued at $29,000. MUFG Securities EMEA plc purchased a new stake in shares of EPAM Systems during the 2nd quarter valued at $30,000. Sentry Investment Management LLC purchased a new stake in shares of EPAM Systems during the 1st quarter valued at $33,000. Finally, CX Institutional purchased a new stake in shares of EPAM Systems during the 1st quarter valued at $42,000. 91.58% of the stock is owned by institutional investors.

EPAM Systems Stock Performance

The company has a market cap of $8.61 billion, a PE ratio of 22.05, a PEG ratio of 2.27 and a beta of 1.66. The business's 50-day moving average is $165.89 and its 200 day moving average is $169.58. The company has a debt-to-equity ratio of 0.01, a quick ratio of 3.17 and a current ratio of 3.17.

EPAM Systems (NYSE:EPAM - Get Free Report) last issued its earnings results on Thursday, August 7th. The information technology services provider reported $2.77 EPS for the quarter, topping analysts' consensus estimates of $2.61 by $0.16. The company had revenue of $1.35 billion for 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 firm's revenue was up 18.0% compared to the same quarter last year. During the same quarter last year, the company earned $2.45 EPS. EPAM Systems has set its FY 2025 guidance at 10.960-11.120 EPS. Q3 2025 guidance at 2.980-3.060 EPS. On average, equities research analysts predict that EPAM Systems, Inc. will post 8.9 EPS for the current fiscal year.

EPAM Systems Company Profile

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.