Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) Receives Consensus Rating of "Hold" from Analysts

Key Points

• Grid Dynamics has a consensus analyst rating of "Hold" from seven brokerages (2 sell, 5 buy) with an average 12‑month price target of $10, and several firms have recently cut their price targets.
• The company modestly topped Q1 estimates with EPS $0.09 vs $0.08 and revenue $104.1M, but margins are thin (net margin 1.27%) and the stock trades around $5.84 with a high P/E ≈116.8, suggesting high valuation despite limited growth.
• Institutional investors own about 71.18% of the shares, with recent stake increases by Principal Financial and Fifth Third and several new institutional positions opened in the past quarter.

Grid Dynamics Holdings, Inc. (NASDAQ:GDYN - Get Free Report) has received a consensus rating of "Hold" from the seven brokerages that are covering the stock, Marketbeat reports. Two equities research analysts have rated the stock with a sell recommendation and five have assigned a buy recommendation to the company. The average twelve-month price target among brokerages that have issued a report on the stock in the last year is $10.00.

GDYN has been the topic of several recent analyst reports. JPMorgan Chase & Co. cut their price objective on Grid Dynamics from $10.00 to $9.00 and set an "overweight" rating on the stock in a report on Wednesday, February 18th. Weiss Ratings cut Grid Dynamics from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday, April 7th. Needham & Company LLC cut their price objective on Grid Dynamics from $10.00 to $8.00 and set a "buy" rating on the stock in a report on Friday. Northland Securities cut their price objective on Grid Dynamics from $14.00 to $12.00 and set an "outperform" rating on the stock in a report on Monday, March 9th. Finally, TD Cowen cut their price objective on Grid Dynamics from $11.00 to $10.00 and set a "buy" rating on the stock in a report on Friday.

Hedge Funds Weigh In On Grid Dynamics

Several institutional investors have recently modified their holdings of the business. Principal Financial Group Inc. lifted its holdings in shares of Grid Dynamics by 2.4% during the 1st quarter. Principal Financial Group Inc. now owns 323,773 shares of the company's stock valued at $1,846,000 after purchasing an additional 7,548 shares in the last quarter. Fifth Third Bancorp lifted its holdings in shares of Grid Dynamics by 1,209.4% during the 1st quarter. Fifth Third Bancorp now owns 33,940 shares of the company's stock valued at $193,000 after purchasing an additional 31,348 shares in the last quarter. Aaron Wealth Advisors LLC bought a new position in shares of Grid Dynamics during the 1st quarter valued at about $98,000. Louisiana State Employees Retirement System bought a new position in shares of Grid Dynamics during the 1st quarter valued at about $167,000. Finally, Corient Private Wealth LLC bought a new position in shares of Grid Dynamics during the 4th quarter valued at about $194,000. Institutional investors own 71.18% of the company's stock.

Grid Dynamics Trading Up 0.5%

Shares of GDYN opened at $5.84 on Tuesday. Grid Dynamics has a 1 year low of $5.13 and a 1 year high of $15.32. The stock has a market cap of $498.44 million, a P/E ratio of 116.82 and a beta of 0.86. The stock's 50-day moving average price is $6.04 and its two-hundred day moving average price is $7.68.

Grid Dynamics (NASDAQ:GDYN - Get Free Report) last issued its earnings results on Thursday, April 30th. The company reported $0.09 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.08 by $0.01. Grid Dynamics had a return on equity of 1.20% and a net margin of 1.27%.The firm had revenue of $104.10 million for the quarter, compared to analysts' expectations of $103.32 million. During the same quarter last year, the business earned $0.11 earnings per share. The company's revenue was up 3.7% compared to the same quarter last year. As a group, equities analysts forecast that Grid Dynamics will post 0.1 EPS for the current year.

Grid Dynamics Company Profile

Grid Dynamics NASDAQ: GDYN is a digital engineering and technology services company that helps enterprises accelerate their digital transformation initiatives. The company specializes in designing and implementing scalable, cloud-native solutions that leverage advanced analytics, machine learning and artificial intelligence to optimize operations, enhance customer experiences and drive revenue growth. Its technology expertise spans e-commerce platforms, modern data architectures, DevOps and automation, as well as custom application development across a range of industries including retail, financial services, high tech and automotive.

Key service offerings include cloud migration and modernization, data engineering and analytics, AI/ML-driven insights, digital commerce and omnichannel solutions.

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