Northland Securities Cuts Grid Dynamics (NASDAQ:GDYN) Price Target to $12.00

Key Points

• Northland Securities lowered its price target on Grid Dynamics from $14 to $12 while maintaining an "outperform" rating, a target that implies roughly an 89% upside from the stock's current price.
• Multiple analysts have cut targets recently and the consensus is a "Moderate Buy" with an average target of $10.60, reflecting tempered expectations despite a majority of buy ratings.
• Shares trade near a 52-week low at about $6.34 with a $537M market cap; the company slightly beat quarterly EPS and revenue estimates (EPS $0.10, revenue up 5.9% YoY) but margins remain thin.

Grid Dynamics (NASDAQ:GDYN - Get Free Report) had its price target dropped by research analysts at Northland Securities from $14.00 to $12.00 in a research note issued on Monday,Benzinga reports. The brokerage presently has an "outperform" rating on the stock. Northland Securities' target price indicates a potential upside of 89.27% from the stock's current price.

A number of other equities research analysts also recently issued reports on the stock. Needham & Company LLC reduced their price target on shares of Grid Dynamics from $13.00 to $10.00 and set a "buy" rating for the company in a research report on Friday. Weiss Ratings reiterated a "hold (c-)" rating on shares of Grid Dynamics in a research report on Wednesday, December 24th. JPMorgan Chase & Co. lowered their target price on Grid Dynamics from $10.00 to $9.00 and set an "overweight" rating on the stock in a report on Wednesday, February 18th. Finally, TD Cowen cut their price target on Grid Dynamics from $12.00 to $11.00 and set a "buy" rating for the company in a research note on Friday. Five analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $10.60.

Grid Dynamics Stock Performance

NASDAQ:GDYN traded down $0.30 during trading hours on Monday, hitting $6.34. The company's stock had a trading volume of 294,746 shares, compared to its average volume of 1,347,460. Grid Dynamics has a 52-week low of $6.11 and a 52-week high of $18.22. The business's 50-day moving average is $7.97 and its two-hundred day moving average is $8.26. The company has a market capitalization of $537.44 million, a PE ratio of 63.40 and a beta of 0.84.

Grid Dynamics (NASDAQ:GDYN - Get Free Report) last posted its quarterly earnings results on Thursday, March 5th. The company reported $0.10 earnings per share for the quarter, topping analysts' consensus estimates of $0.09 by $0.01. Grid Dynamics had a net margin of 2.35% and a return on equity of 1.46%. The business had revenue of $106.15 million for the quarter, compared to analysts' expectations of $105.92 million. During the same period in the prior year, the company posted $0.12 EPS. The business's revenue for the quarter was up 5.9% on a year-over-year basis. As a group, analysts predict that Grid Dynamics will post 0.18 EPS for the current fiscal year.

Insider Buying and Selling

In other Grid Dynamics news, CFO Anil Doradla sold 4,368 shares of the company's stock in a transaction dated Tuesday, December 9th. The shares were sold at an average price of $10.00, for a total value of $43,680.00. Following the transaction, the chief financial officer directly owned 344,852 shares in the company, valued at approximately $3,448,520. This represents a 1.25% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 6.50% of the company's stock.

Institutional Trading of Grid Dynamics

A number of hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. increased its stake in Grid Dynamics by 5.0% during the fourth quarter. Vanguard Group Inc. now owns 5,920,753 shares of the company's stock worth $53,464,000 after acquiring an additional 279,995 shares during the last quarter. Wasatch Advisors LP lifted its stake in shares of Grid Dynamics by 2.5% in the 2nd quarter. Wasatch Advisors LP now owns 4,669,558 shares of the company's stock valued at $53,933,000 after purchasing an additional 112,319 shares in the last quarter. Alyeska Investment Group L.P. lifted its stake in shares of Grid Dynamics by 236.9% in the 3rd quarter. Alyeska Investment Group L.P. now owns 4,290,786 shares of the company's stock valued at $33,082,000 after purchasing an additional 3,017,017 shares in the last quarter. Fourth Sail Capital LP grew its holdings in shares of Grid Dynamics by 36.2% during the 4th quarter. Fourth Sail Capital LP now owns 3,827,968 shares of the company's stock worth $34,567,000 after purchasing an additional 1,016,563 shares during the period. Finally, Wellington Management Group LLP grew its holdings in shares of Grid Dynamics by 20.8% during the 4th quarter. Wellington Management Group LLP now owns 2,356,779 shares of the company's stock worth $21,282,000 after purchasing an additional 405,381 shares during the period. Institutional investors and hedge funds own 71.18% of the company's stock.

About Grid Dynamics

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.