Grid Dynamics (NASDAQ:GDYN) Shares Gap Down Following Analyst Downgrade

Key Points

• Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) experienced a significant share price drop after Needham & Company LLC downgraded its price target from $20.00 to $15.00, resulting in shares opening at $8.62, down from a previous close of $9.49.
• Wall Street Zen has also changed its rating for Grid Dynamics from "buy" to "hold," contributing to a mixed outlook among analysts, with consensus still leaning towards a "Buy" rating overall and an average target price of $17.50.
• The company reported quarterly earnings that met analyst expectations, with revenue increasing 21.7% year-over-year to $101.10 million, though the stock has faced a trading decline of 11.9%.

Grid Dynamics Holdings, Inc. (NASDAQ:GDYN - Get Free Report)'s stock price gapped down before the market opened on Friday after Needham & Company LLC lowered their price target on the stock from $20.00 to $15.00. The stock had previously closed at $9.49, but opened at $8.62. Needham & Company LLC currently has a buy rating on the stock. Grid Dynamics shares last traded at $8.21, with a volume of 542,923 shares changing hands.

Separately, Wall Street Zen cut Grid Dynamics from a "buy" rating to a "hold" rating in a report on Sunday, July 20th. One analyst has rated the stock with a hold rating, four have given a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, the company currently has an average rating of "Buy" and a consensus price target of $17.50.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. raised its position in shares of Grid Dynamics by 26.8% in the 4th quarter. Vanguard Group Inc. now owns 5,535,526 shares of the company's stock valued at $123,110,000 after acquiring an additional 1,171,481 shares during the period. Jennison Associates LLC increased its holdings in Grid Dynamics by 7.1% in the 2nd quarter. Jennison Associates LLC now owns 1,966,828 shares of the company's stock worth $22,717,000 after purchasing an additional 129,961 shares in the last quarter. Dimensional Fund Advisors LP boosted its stake in shares of Grid Dynamics by 1.0% in the 4th quarter. Dimensional Fund Advisors LP now owns 1,816,447 shares of the company's stock valued at $40,399,000 after purchasing an additional 17,881 shares during the last quarter. Next Century Growth Investors LLC increased its position in Grid Dynamics by 10.8% in the 1st quarter. Next Century Growth Investors LLC now owns 1,798,071 shares of the company's stock valued at $28,140,000 after buying an additional 175,845 shares in the last quarter. Finally, William Blair Investment Management LLC lifted its stake in Grid Dynamics by 4.9% during the 2nd quarter. William Blair Investment Management LLC now owns 1,456,824 shares of the company's stock valued at $16,826,000 after acquiring an additional 67,781 shares in the last quarter. Institutional investors own 71.18% of the company's stock.

Grid Dynamics Trading Down 1.1%

The company has a market cap of $675.98 million, a P/E ratio of 42.08 and a beta of 1.06. The business's fifty day moving average is $11.37 and its 200 day moving average is $15.12.

Grid Dynamics (NASDAQ:GDYN - Get Free Report) last released its quarterly earnings data on Thursday, July 31st. The company reported $0.10 earnings per share for the quarter, meeting analysts' consensus estimates of $0.10. The business had revenue of $101.10 million during 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%. Grid Dynamics's revenue was up 21.7% compared to the same quarter last year. During the same period last year, the business earned $0.08 EPS. As a group, research analysts expect that Grid Dynamics Holdings, Inc. will post 0.18 EPS for the current fiscal year.

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.