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

Key Points

• Grid Dynamics shares gapped down after TD Cowen cut its price target from $10 to $8, even though the firm kept a buy rating on the stock. The shares opened below the prior close of $5.86 and were last trading around $5.98.
• Analyst sentiment on GDYN remains mixed, with several firms recently adjusting ratings and targets; MarketBeat data shows an overall Hold rating and an average price target of $9.00.
• The company recently reported earnings of $0.09 per share on revenue of $104.1 million, both slightly above estimates, while revenue rose 3.7% year over year. Insiders also sold shares recently, including COO Yury Gryzlov’s 4,435-share sale under a Rule 10b5-1 plan.

Grid Dynamics Holdings, Inc. (NASDAQ:GDYN - Get Free Report)'s share price gapped down before the market opened on Thursday after TD Cowen lowered their price target on the stock from $10.00 to $8.00. The stock had previously closed at $5.86, but opened at $5.61. TD Cowen currently has a buy rating on the stock. Grid Dynamics shares last traded at $5.9750, with a volume of 690,806 shares trading hands.

A number of other analysts have also issued reports on GDYN. Weiss Ratings lowered Grid Dynamics from a "sell (d+)" rating to a "sell (d)" rating in a report on Monday, May 4th. Zacks Research raised Grid Dynamics from a "strong sell" rating to a "hold" rating in a research report on Wednesday, May 6th. Needham & Company LLC lowered their target price on Grid Dynamics from $10.00 to $8.00 and set a "buy" rating for the company in a report on Friday, May 1st. Citigroup reissued a "cautious" rating on shares of Grid Dynamics in a research report on Friday, May 29th. Finally, Jefferies Financial Group lowered shares of Grid Dynamics from a "buy" rating to a "hold" rating and set a $8.00 price objective for the company. in a research note on Friday, May 29th. Four investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, Grid Dynamics has an average rating of "Hold" and an average price target of $9.00.

Insider Transactions at Grid Dynamics

In other news, COO Yury Gryzlov sold 4,435 shares of the firm's stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $8.00, for a total value of $35,480.00. Following the completion of the transaction, the chief operating officer directly owned 514,948 shares in the company, valued at $4,119,584. This trade represents a 0.85% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 6,147 shares of company stock valued at $46,323. Company insiders own 6.50% of the company's stock.

Institutional Trading of Grid Dynamics

Hedge funds and other institutional investors have recently bought and sold shares of the stock. FNY Investment Advisers LLC acquired a new stake in Grid Dynamics during the second quarter valued at $99,000. Mirador Capital Partners LP boosted its stake in shares of Grid Dynamics by 10.6% during the 2nd quarter. Mirador Capital Partners LP now owns 189,086 shares of the company's stock worth $1,074,000 after acquiring an additional 18,108 shares in the last quarter. Pacer Advisors Inc. purchased a new stake in shares of Grid Dynamics during the 1st quarter worth about $884,000. Bank of America Corp DE grew its position in shares of Grid Dynamics by 76.4% during the 1st quarter. Bank of America Corp DE now owns 364,342 shares of the company's stock valued at $2,077,000 after acquiring an additional 157,767 shares during the period. Finally, Quantinno Capital Management LP grew its position in shares of Grid Dynamics by 460.4% during the 1st quarter. Quantinno Capital Management LP now owns 206,289 shares of the company's stock valued at $1,176,000 after acquiring an additional 169,477 shares during the period. 71.18% of the stock is owned by institutional investors and hedge funds.

Grid Dynamics Stock Performance

The company has a 50 day moving average of $6.37 and a two-hundred day moving average of $6.93. The stock has a market cap of $499.67 million, a PE ratio of 119.72 and a beta of 0.98.

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

About Grid Dynamics

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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