monday.com (NASDAQ:MNDY) Shares Gap Down - Time to Sell?

Key Points

• Shares gapped down—monday.com opened at $71.89 after closing $76.39 and last traded around $70.52 on elevated volume, reflecting a sharp short‑term sell‑off and negative momentum.
• Multiple law firms have issued shareholder securities‑class‑action alerts (lead‑plaintiff deadline May 11, 2026), which has amplified legal risk and headline‑driven selling pressure.
• Despite the pullback, the company reported 24.6% revenue growth and an EPS beat, analysts hold a Moderate Buy consensus with a mean price target of $144.09, and monday.com is pitching an AI Work Platform as a potential longer‑term differentiator.

monday.com Ltd. (NASDAQ:MNDY - Get Free Report)'s stock price gapped down prior to trading on Friday . The stock had previously closed at $76.39, but opened at $71.89. monday.com shares last traded at $70.5180, with a volume of 387,817 shares traded.

Key monday.com News

Here are the key news stories impacting monday.com this week:

• Positive Sentiment: monday.com highlights an AI transition — coverage notes the company is positioning its platform as an "AI Work Platform," which, if executed, could boost product differentiation and long‑term revenue growth. monday.com Goes All In on AI
• Neutral Sentiment: Analyst/commentary pieces are urging investors to reassess MNDY after a sharp share‑price decline — these discuss valuation reset and risk/reward but do not introduce new catalysts beyond market reaction and fundamentals. Is It Time To Reassess monday.com (MNDY)?
• Negative Sentiment: Multiple law firms have issued shareholder alerts and reminders about a securities‑class‑action lead‑plaintiff deadline (May 11, 2026). The volume of filings/alerts (Rosen, Faruqi & Faruqi, Gross Law, Pomerantz, Schall, Frank R. Cruz, Bernstein Liebhard, Bragar Eagel & Squire, etc.) amplifies perceived legal risk and potential future costs or settlements, which is weighing on the stock. Faruqi & Faruqi Alert
• Negative Sentiment: Market coverage notes a recent intraday sell‑off and headline‑driven weakness; short‑term momentum is negative as investors react to litigation headlines and reassess near‑term prospects. Zacks: Stock Sinks As Market Gains

Analyst Ratings Changes

Several research firms have recently weighed in on MNDY. Robert W. Baird reissued a "neutral" rating and issued a $90.00 price target (down from $175.00) on shares of monday.com in a research note on Tuesday, February 10th. Guggenheim set a $130.00 price target on shares of monday.com and gave the stock a "buy" rating in a research note on Thursday, April 9th. BTIG Research decreased their price target on shares of monday.com from $210.00 to $135.00 and set a "buy" rating on the stock in a research note on Tuesday, February 10th. Weiss Ratings restated a "sell (d)" rating on shares of monday.com in a research report on Thursday, January 22nd. Finally, Canaccord Genuity Group cut their price objective on shares of monday.com from $190.00 to $140.00 and set a "buy" rating for the company in a research report on Tuesday, February 10th. Seventeen research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, monday.com presently has an average rating of "Moderate Buy" and a consensus price target of $144.09.

monday.com Stock Performance

The firm has a market cap of $3.65 billion, a price-to-earnings ratio of 31.69, a price-to-earnings-growth ratio of 1.48 and a beta of 1.17. The company has a 50 day moving average price of $70.52 and a 200 day moving average price of $116.62.

monday.com (NASDAQ:MNDY - Get Free Report) last issued its quarterly earnings data on Monday, February 9th. The company reported $1.04 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.91 by $0.13. The firm had revenue of $333.88 million during the quarter, compared to the consensus estimate of $329.71 million. monday.com had a return on equity of 4.80% and a net margin of 9.64%.The company's quarterly revenue was up 24.6% on a year-over-year basis. During the same period last year, the company earned $1.08 EPS. On average, research analysts forecast that monday.com Ltd. will post 1.83 earnings per share for the current year.

Institutional Investors Weigh In On monday.com

A number of institutional investors have recently made changes to their positions in the stock. S&CO Inc. increased its position in shares of monday.com by 68.9% during the first quarter. S&CO Inc. now owns 11,615 shares of the company's stock valued at $802,000 after acquiring an additional 4,740 shares during the last quarter. SEB Asset Management AB acquired a new stake in shares of monday.com during the first quarter valued at about $1,639,000. Swiss National Bank increased its position in shares of monday.com by 28.6% during the first quarter. Swiss National Bank now owns 159,100 shares of the company's stock valued at $10,995,000 after acquiring an additional 35,400 shares during the last quarter. Aurora Investment Counsel acquired a new stake in shares of monday.com during the first quarter valued at about $1,213,000. Finally, Aware Super Pty Ltd as trustee of Aware Super acquired a new stake in shares of monday.com during the first quarter valued at about $2,859,000. 73.70% of the stock is currently owned by institutional investors and hedge funds.

About monday.com

monday.com is a software-as-a-service (SaaS) company that provides a cloud-based Work Operating System (Work OS) designed to help teams plan, organize and track their work. The platform offers customizable workflows that support project management, task delegation, time tracking and collaboration across departments. monday.com's visual interface enables users to create boards, automations and dashboards to centralize information and streamline processes without requiring extensive coding knowledge.

The company's product portfolio includes monday Work OS, which can be adapted for use cases ranging from marketing campaign management and sales pipelines to software development sprints and human resources onboarding.

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