Grid Dynamics (NASDAQ:GDYN) Reaches New 12-Month Low - Here's What Happened

Key Points

• Grid Dynamics shares hit a new 12-month low at $9.62, following a significant volume of over 792,000 shares traded.
• Analysts' ratings vary, with a consensus of "Buy" and an average price target of $18.75, despite a recent downgrade from Wall Street Zen.
• The company's quarterly earnings report showed a 25.8% increase in revenue year-over-year, surpassing analysts' expectations with $100.42 million in revenue.

Shares of Grid Dynamics Holdings, Inc. (NASDAQ:GDYN - Get Free Report) hit a new 52-week low during mid-day trading on Thursday . The company traded as low as $9.62 and last traded at $9.70, with a volume of 792255 shares. The stock had previously closed at $9.91.

Analysts Set New Price Targets

GDYN has been the topic of several research reports. Needham & Company LLC cut their target price on Grid Dynamics from $20.00 to $15.00 and set a "buy" rating on the stock in a research report on Friday. Wall Street Zen lowered Grid Dynamics from a "buy" rating to a "hold" rating in a research note on Sunday, July 20th. One analyst has rated the stock with a hold rating, four have assigned a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Buy" and an average price target of $17.50.

Grid Dynamics Stock Performance

The stock has a market cap of $678.50 million, a PE ratio of 42.34 and a beta of 1.06. The company's 50-day moving average price is $11.46 and its 200 day moving average price is $15.21.

Grid Dynamics (NASDAQ:GDYN - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The company reported $0.10 EPS for the quarter, meeting the consensus estimate of $0.10. The firm had revenue of $101.10 million for the quarter, compared to analyst estimates of $100.45 million. Grid Dynamics had a net margin of 4.37% and a return on equity of 1.89%. The business's revenue for the quarter was up 21.7% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.08 EPS. As a group, equities research analysts predict that Grid Dynamics Holdings, Inc. will post 0.18 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, COO Yury Gryzlov sold 2,000 shares of Grid Dynamics stock in a transaction that occurred on Tuesday, May 6th. The shares were sold at an average price of $13.22, for a total value of $26,440.00. Following the completion of the sale, the chief operating officer owned 474,269 shares in the company, valued at approximately $6,269,836.18. This trade represents a 0.42% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. In the last three months, insiders have sold 6,737 shares of company stock valued at $84,251. 7.20% of the stock is currently owned by company insiders.

Institutional Trading of Grid Dynamics

Several institutional investors have recently added to or reduced their stakes in GDYN. Coppell Advisory Solutions LLC acquired a new position in shares of Grid Dynamics in the fourth quarter worth $25,000. Caitong International Asset Management Co. Ltd grew its stake in shares of Grid Dynamics by 28,150.0% in the first 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 in the last quarter. PNC Financial Services Group Inc. grew its stake in shares of Grid Dynamics by 199.0% in the first 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 in the last quarter. USA Financial Formulas acquired a new position in shares of Grid Dynamics in the first quarter worth $42,000. Finally, Johnson Financial Group Inc. acquired a new position in shares of Grid Dynamics in the fourth quarter worth $70,000. Institutional investors and hedge funds own 71.18% of the company's stock.

About Grid Dynamics

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.