monday.com (NASDAQ:MNDY) Shares Gap Up on Better-Than-Expected Earnings

Key Points

• monday.com shares gapped up after the company reported better-than-expected quarterly results, opening at $85.51 versus the prior close of $72.07.
• The company posted EPS of $1.15, beating the consensus estimate of $0.96, while revenue rose 24.4% year over year.
• Management’s Q2 revenue guidance of $354 million to $356 million came in slightly ahead of expectations, though a securities class action deadline remains a possible overhang.

monday.com Ltd. (NASDAQ:MNDY - Get Free Report) shares gapped up prior to trading on Monday following a stronger than expected earnings report. The stock had previously closed at $72.07, but opened at $85.51. monday.com shares last traded at $78.4170, with a volume of 2,212,185 shares.

The company reported $1.15 earnings per share for the quarter, topping the consensus estimate of $0.96 by $0.19. monday.com had a return on equity of 4.80% and a net margin of 9.64%.monday.com's revenue for the quarter was up 24.4% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.10 earnings per share.

Key Stories Impacting monday.com

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

• Positive Sentiment: monday.com beat first-quarter EPS expectations by a wide margin and posted strong year-over-year revenue growth, reinforcing the company’s growth story. Press Release
• Positive Sentiment: Second-quarter revenue guidance of $354 million to $356 million was slightly ahead of consensus, and full-year revenue guidance was also in line with expectations, which supports confidence in the company’s outlook. Slide Deck
• Neutral Sentiment: Multiple law firms highlighted a May 11 deadline for a securities class action tied to prior-period allegations, which adds headline risk but is not the main driver of today’s move.
• Negative Sentiment: The legal overhang could keep some pressure on sentiment if investors worry about litigation costs or distraction from execution.

Analysts Set New Price Targets

A number of brokerages have recently commented on MNDY. Jefferies Financial Group cut monday.com from a "buy" rating to a "hold" rating and lowered their price target for the company from $260.00 to $80.00 in a research note on Monday, February 23rd. BTIG Research lowered their price target on monday.com from $210.00 to $135.00 and set a "buy" rating for the company in a research note on Tuesday, February 10th. Needham & Company LLC lowered their price target on monday.com from $250.00 to $125.00 and set a "buy" rating for the company in a research note on Monday, February 9th. Weiss Ratings reissued a "sell (d)" rating on shares of monday.com in a research note on Thursday, January 22nd. Finally, Wells Fargo & Company lowered their target price on monday.com from $200.00 to $130.00 and set an "overweight" rating for the company in a research note on Tuesday, February 10th. Seventeen equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $144.09.

Hedge Funds Weigh In On monday.com

Large investors have recently bought and sold shares of the company. WCM Investment Management LLC boosted its position in monday.com by 2.8% during the 3rd quarter. WCM Investment Management LLC now owns 4,184,745 shares of the company's stock worth $843,519,000 after acquiring an additional 115,353 shares during the last quarter. Ibex Investors LLC acquired a new position in monday.com during the 3rd quarter worth approximately $34,864,000. Baillie Gifford & Co. boosted its position in monday.com by 136.5% during the 3rd quarter. Baillie Gifford & Co. now owns 708,278 shares of the company's stock worth $137,186,000 after acquiring an additional 408,848 shares during the last quarter. TenCore Partners LP boosted its position in monday.com by 42.2% during the 3rd quarter. TenCore Partners LP now owns 141,390 shares of the company's stock worth $27,386,000 after acquiring an additional 41,935 shares during the last quarter. Finally, Migdal Insurance & Financial Holdings Ltd. boosted its position in monday.com by 17.9% during the 3rd quarter. Migdal Insurance & Financial Holdings Ltd. now owns 79,009 shares of the company's stock worth $15,303,000 after acquiring an additional 12,000 shares during the last quarter. Institutional investors and hedge funds own 73.70% of the company's stock.

monday.com Stock Performance

The business has a 50-day simple moving average of $70.52 and a two-hundred day simple moving average of $116.62. The stock has a market cap of $3.96 billion, a price-to-earnings ratio of 34.43, a P/E/G ratio of 1.44 and a beta of 1.17.

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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