Grid Dynamics (NASDAQ:GDYN) Sets New 12-Month Low - Here's Why

Key Points

• Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) recently reached a new 12-month low, trading as low as $10.26 before closing at $10.33.
• Despite the stock's decline, analysts maintain a generally positive outlook, with an average target price of $18.75 and a consensus rating of "Buy."
• Institutional investors hold 71.18% of the shares, with notable new stakes acquired by several hedge funds recently.
• The company's latest earnings report showed revenue growth of 25.8% year-over-year, surpassing expectations with $100.42 million in revenue.

Grid Dynamics Holdings, Inc. (NASDAQ:GDYN - Get Free Report)'s stock price hit a new 52-week low during trading on Friday . The company traded as low as $10.26 and last traded at $10.33, with a volume of 73245 shares changing hands. The stock had previously closed at $10.38.

Wall Street Analysts Forecast Growth

GDYN has been the subject of a number of research reports. Wall Street Zen downgraded shares of Grid Dynamics from a "buy" rating to a "hold" rating in a research report on Sunday, July 20th. Needham & Company LLC lifted their price target on shares of Grid Dynamics from $18.00 to $20.00 and gave the company a "buy" rating in a research report on Friday, May 2nd. One analyst has rated the stock with a hold rating, four have assigned a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, Grid Dynamics presently has a consensus rating of "Buy" and an average target price of $18.75.

Grid Dynamics Stock Performance

The stock's 50-day moving average price is $11.93 and its 200-day moving average price is $15.76. The company has a market capitalization of $886.51 million, a price-to-earnings ratio of 86.76 and a beta of 1.04.

Grid Dynamics (NASDAQ:GDYN - Get Free Report) last issued its quarterly earnings data on Thursday, May 1st. The company reported $0.11 earnings per share for the quarter, topping analysts' consensus estimates of $0.09 by $0.02. Grid Dynamics had a net margin of 2.94% and a return on equity of 1.37%. The business had revenue of $100.42 million during the quarter, compared to analysts' expectations of $98.19 million. During the same period last year, the company posted $0.10 EPS. The company's revenue was up 25.8% on a year-over-year basis. Analysts anticipate that Grid Dynamics Holdings, Inc. will post 0.18 earnings per share for the current year.

Insider Buying and Selling at Grid Dynamics

In other news, COO Yury Gryzlov sold 2,000 shares of the firm's stock in a transaction that occurred on Tuesday, May 6th. The shares were sold at an average price of $13.22, for a total transaction of $26,440.00. Following the completion of the transaction, the chief operating officer directly owned 474,269 shares of the company's stock, valued at $6,269,836.18. This trade represents a 0.42% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Over the last three months, insiders have sold 6,737 shares of company stock worth $84,251. Company insiders own 7.20% of the company's stock.

Institutional Trading of Grid Dynamics

Several hedge funds and other institutional investors have recently bought and sold shares of GDYN. Coppell Advisory Solutions LLC purchased a new stake in Grid Dynamics in the 4th quarter worth approximately $25,000. Caitong International Asset Management Co. Ltd grew its stake in Grid Dynamics by 28,150.0% in the 1st quarter. Caitong International Asset Management Co. Ltd now owns 1,695 shares of the company's stock worth $27,000 after acquiring an additional 1,689 shares during the period. PNC Financial Services Group Inc. grew its stake in Grid Dynamics by 199.0% in the 1st quarter. PNC Financial Services Group Inc. now owns 2,293 shares of the company's stock worth $36,000 after acquiring an additional 1,526 shares during the period. USA Financial Formulas purchased a new stake in Grid Dynamics in the 1st quarter worth approximately $42,000. Finally, Johnson Financial Group Inc. purchased a new stake in Grid Dynamics in the 4th quarter worth approximately $70,000. 71.18% of the stock is owned by hedge funds and other institutional investors.

Grid Dynamics Company Profile

Grid Dynamics Holdings, Inc, together with its subsidiaries, provides technology consulting, platform and product engineering, and analytics services in North America, Europe, and internationally. It offers cloud platform and product engineering services, such as architecting, designing, and building scalable and secure cloud-based platforms and business applications; and AI/machine learning and data platform engineering services that build platforms to facilitate batch and streaming data ingestion, quality governance, orchestration, semantic modeling, observability, and analysis at scale.

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