Grid Dynamics (NASDAQ:GDYN) Stock: Insider Anil Doradla Sells 20,000 Shares

Key Points

• CFO Anil Doradla sold 20,000 Grid Dynamics shares at an average price of $10.51, generating $210,200. The pre-arranged Rule 10b5-1 transaction reduced his holdings by 5.07% to 374,509 shares.
• Grid Dynamics exceeded quarterly expectations, reporting $0.18 in earnings per share and $114.29 million in revenue versus estimates of $0.13 and $112.77 million, respectively.
• The stock reached $13.36 amid strong trading volume, while analyst sentiment remained mixed: the consensus rating was “Hold” with an $11.80 target, and the company traded at a high price-to-earnings ratio despite modest profitability.

Grid Dynamics Holdings, Inc. (NASDAQ:GDYN - Get Free Report) CFO Anil Doradla sold 20,000 shares of the business's stock in a transaction on Friday, October 30th. The stock was sold at an average price of $10.51, for a total value of $210,200.00. Following the completion of the transaction, the chief financial officer owned 374,509 shares of the company's stock, valued at $3,936,089.59. This represents a 5.07% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Grid Dynamics Stock Performance

Shares of NASDAQ:GDYN traded up $3.87 during midday trading on Friday, reaching $13.36. 8,563,175 shares of the company's stock traded hands, compared to its average volume of 1,054,520. Grid Dynamics Holdings, Inc. has a one year low of $5.11 and a one year high of $13.39. The company has a market cap of $1.08 billion, a price-to-earnings ratio of 148.44 and a beta of 0.97. The stock has a 50 day moving average of $8.12 and a 200 day moving average of $6.99.

Grid Dynamics (NASDAQ:GDYN - Get Free Report) last released its quarterly earnings data on Thursday, October 29th. The company reported $0.18 EPS for the quarter, topping the consensus estimate of $0.13 by $0.05. Grid Dynamics had a return on equity of 3.23% and a net margin of 1.81%. The company had revenue of $114.29 million during the quarter, compared to the consensus estimate of $112.77 million. Sell-side analysts predict that Grid Dynamics Holdings, Inc. will post 0.20 EPS for the current fiscal year.

More Grid Dynamics News

Here are the key news stories impacting Grid Dynamics this week:

• Positive Sentiment: Q3 earnings and revenue exceeded expectations. Grid Dynamics reported adjusted earnings of $0.18 per share, above the $0.12–$0.13 consensus range and up from $0.09 a year earlier. Revenue reached $114.29 million, topping the $112.77 million estimate. Grid Dynamics Q3 earnings report
• Positive Sentiment: Record quarterly performance and constructive guidance supported the rally. Company coverage characterized the quarter as a record result, while management’s outlook for the next quarter was described as optimistic, reinforcing expectations for continued growth. Grid Dynamics record third-quarter results
• Positive Sentiment: TD Cowen raised its price target and initiated a Buy recommendation. The firm increased its target from $9 to $13, signaling improved confidence in Grid Dynamics’ earnings and growth prospects. TD Cowen analyst recommendation
• Positive Sentiment: The company launched a business process consulting practice. The new offering could broaden Grid Dynamics’ services and create additional opportunities to win enterprise transformation work. Grid Dynamics consulting practice launch
• Neutral Sentiment: Despite the Buy rating, TD Cowen’s $13 target is slightly below the stock’s current trading level, indicating that much of the near-term optimism may already be reflected in the shares.
• Negative Sentiment: Grid Dynamics remains richly valued relative to reported profitability, with a very high price-to-earnings ratio and a net margin below 1%, leaving the stock sensitive to any slowdown in growth or weaker future guidance.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of GDYN. Bastion Asset Management Inc. purchased a new stake in Grid Dynamics in the 1st quarter worth approximately $6,899,000. Squarepoint Ops LLC purchased a new stake in shares of Grid Dynamics in the second quarter worth $2,702,000. Summit Creek Advisors LLC purchased a new stake in shares of Grid Dynamics in the second quarter worth $2,452,000. Bank of America Corp DE raised 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 purchasing an additional 157,767 shares during the period. Finally, Principal Financial Group Inc. raised its position in shares of Grid Dynamics by 2.4% during the 1st quarter. Principal Financial Group Inc. now owns 323,773 shares of the company's stock valued at $1,846,000 after purchasing an additional 7,548 shares during the period. Hedge funds and other institutional investors own 71.18% of the company's stock.

Analyst Ratings Changes

A number of research firms have recently issued reports on GDYN. Needham & Company LLC raised their price target on Grid Dynamics from $10.00 to $15.00 and gave the stock a "buy" rating in a research note on Friday. Zacks Research downgraded Grid Dynamics from a "strong-buy" rating to a "hold" rating in a report on Thursday, October 15th. JPMorgan Chase & Co. increased their target price on Grid Dynamics from $8.00 to $11.00 and gave the company an "overweight" rating in a report on Friday. TD Cowen raised their target price on Grid Dynamics from $9.00 to $13.00 and gave the stock a "buy" rating in a research report on Friday. Finally, Weiss Ratings restated a "sell (d)" rating on shares of Grid Dynamics in a research note on Thursday. Four equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $11.80.

About Grid Dynamics

Grid Dynamics Holdings, Inc NASDAQ: GDYN is a digital engineering and technology services company that helps enterprises modernize their technology infrastructure and develop data-driven products. Its services include software engineering, cloud computing, data engineering, artificial intelligence and machine learning, user experience design, and application modernization.

The company develops and implements technology solutions for industries including retail and consumer packaged goods, financial services, manufacturing, healthcare, and technology.

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