Grid Dynamics (NASDAQ:GDYN) Earns Buy Rating from Analysts at Jefferies Financial Group

Key Points

• Jefferies Financial Group has upgraded Grid Dynamics (NASDAQ:GDYN) to a strong-buy rating, indicating strong confidence in the company's future performance.
• Despite the upgrade, other analysts have issued mixed ratings, with JPMorgan lowering its target price from $13.00 to $11.00 and Needham reducing it from $20.00 to $15.00.
• Grid Dynamics reported a revenue increase of 21.7% year-over-year, with earnings per share meeting the consensus estimate in its most recent quarterly results.

Equities researchers at Jefferies Financial Group initiated coverage on shares of Grid Dynamics (NASDAQ:GDYN - Get Free Report) in a research report issued to clients and investors on Monday, Marketbeat reports. The firm set a "buy" rating and a $11.00 price target on the stock. Jefferies Financial Group's price objective would suggest a potential upside of 35.64% from the stock's previous close.

Other equities analysts have also issued reports about the stock. JPMorgan Chase & Co. decreased their price objective on shares of Grid Dynamics from $13.00 to $11.00 and set an "overweight" rating on the stock in a report on Wednesday, August 20th. Needham & Company LLC decreased their price objective on shares of Grid Dynamics from $20.00 to $15.00 and set a "buy" rating on the stock in a report on Friday, August 1st. Finally, Wall Street Zen lowered shares of Grid Dynamics from a "buy" rating to a "hold" rating in a report on Sunday, July 20th. One investment analyst has rated the stock with a Strong Buy rating and four have assigned a Buy rating to the company. According to MarketBeat, the company has a consensus rating of "Buy" and a consensus price target of $14.80.

Grid Dynamics Price Performance

Grid Dynamics stock opened at $8.11 on Monday. The firm has a 50 day simple moving average of $8.53 and a 200-day simple moving average of $11.82. Grid Dynamics has a 1-year low of $7.37 and a 1-year high of $25.50. The stock has a market cap of $686.67 million, a price-to-earnings ratio of 42.69 and a beta of 1.03.

Grid Dynamics (NASDAQ:GDYN - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The company reported $0.10 EPS for the quarter, hitting the consensus estimate of $0.10. Grid Dynamics had a net margin of 4.37% and a return on equity of 1.89%. The firm had revenue of $101.10 million for the quarter, compared to analyst estimates of $100.45 million. During the same period in the prior year, the business posted $0.08 EPS. The business's revenue for the quarter was up 21.7% compared to the same quarter last year. Grid Dynamics has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. Equities analysts expect that Grid Dynamics will post 0.18 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Caitong International Asset Management Co. Ltd grew its position in Grid Dynamics by 28,150.0% during the 1st quarter. Caitong International Asset Management Co. Ltd now owns 1,695 shares of the company's stock worth $27,000 after purchasing an additional 1,689 shares during the last quarter. PNC Financial Services Group Inc. grew its holdings in shares of Grid Dynamics by 199.0% during the first quarter. PNC Financial Services Group Inc. now owns 2,293 shares of the company's stock worth $36,000 after buying an additional 1,526 shares during the last quarter. USA Financial Formulas purchased a new position in shares of Grid Dynamics during the first quarter worth about $42,000. Canada Pension Plan Investment Board purchased a new position in shares of Grid Dynamics during the second quarter worth about $43,000. Finally, Tower Research Capital LLC TRC grew its holdings in shares of Grid Dynamics by 208.2% during the second quarter. Tower Research Capital LLC TRC now owns 6,213 shares of the company's stock worth $72,000 after buying an additional 4,197 shares during the last quarter. 71.18% of the stock is owned by hedge funds and other institutional investors.

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.