Grid Dynamics (NASDAQ:GDYN) Upgraded to "Hold" at Zacks Research

Key Points

• Zacks Research upgraded Grid Dynamics (NASDAQ:GDYN) from a "strong sell" to a "hold," signaling a moderation in one firm's near-term outlook for the stock.
• Several analysts have trimmed price targets (e.g., Needham to $8, JPMorgan to $9, TD Cowen to $10) even as most maintain positive ratings; consensus shows five Buys, one Hold and one Sell with an average target price of $10.
• Fundamentals show a mixed picture: GDYN opened at $6.99, reported a slight EPS beat ($0.09 vs. $0.08) and revenue of $104.1M (+3.7% YoY), has a market cap of about $596.6M and a high PE (~139.8), and roughly 71% of the shares are held by institutions that recently increased stakes.

Grid Dynamics (NASDAQ:GDYN - Get Free Report) was upgraded by equities researchers at Zacks Research from a "strong sell" rating to a "hold" rating in a research note issued to investors on Wednesday,Zacks.com reports.

Several other research firms have also commented on GDYN. 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 research report on Friday, May 1st. 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 research report on Wednesday, February 18th. 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 research report on Monday, March 9th. Weiss Ratings lowered Grid Dynamics from a "sell (d+)" rating to a "sell (d)" rating in a research report on Monday. 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 research report on Friday, May 1st. Five investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Grid Dynamics has an average rating of "Moderate Buy" and an average target price of $10.00.

Grid Dynamics Price Performance

NASDAQ:GDYN opened at $6.99 on Wednesday. The business's 50-day moving average is $6.05 and its two-hundred day moving average is $7.66. Grid Dynamics has a 12 month low of $5.13 and a 12 month high of $15.32. The firm has a market capitalization of $596.60 million, a PE ratio of 139.83 and a beta of 0.86.

Grid Dynamics (NASDAQ:GDYN - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The company reported $0.09 EPS for the quarter, beating the consensus estimate of $0.08 by $0.01. Grid Dynamics had a return on equity of 1.20% and a net margin of 1.27%.The company had revenue of $104.10 million for the quarter, compared to analyst estimates of $103.32 million. During the same period last year, the company posted $0.11 earnings per share. The firm's revenue was up 3.7% compared to the same quarter last year. Equities analysts anticipate that Grid Dynamics will post 0.1 EPS for the current year.

Institutional Trading of Grid Dynamics

Several large investors have recently modified their holdings of the business. Vanguard Group Inc. grew its stake in shares of Grid Dynamics by 5.0% during the fourth quarter. Vanguard Group Inc. now owns 5,920,753 shares of the company's stock valued at $53,464,000 after acquiring an additional 279,995 shares in the last quarter. Wasatch Advisors LP grew its stake in shares of Grid Dynamics by 2.5% during the second quarter. Wasatch Advisors LP now owns 4,669,558 shares of the company's stock valued at $53,933,000 after acquiring an additional 112,319 shares in the last quarter. Alyeska Investment Group L.P. grew its stake in shares of Grid Dynamics by 236.9% during the third quarter. Alyeska Investment Group L.P. now owns 4,290,786 shares of the company's stock valued at $33,082,000 after acquiring an additional 3,017,017 shares in the last quarter. Fourth Sail Capital LP grew its stake in shares of Grid Dynamics by 36.2% during the fourth quarter. Fourth Sail Capital LP now owns 3,827,968 shares of the company's stock valued at $34,567,000 after acquiring an additional 1,016,563 shares in the last quarter. Finally, Wellington Management Group LLP grew its stake in shares of Grid Dynamics by 20.8% during the fourth quarter. Wellington Management Group LLP now owns 2,356,779 shares of the company's stock valued at $21,282,000 after acquiring an additional 405,381 shares in the last quarter. 71.18% of the stock is currently owned by institutional investors and hedge funds.

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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