EPAM Systems (NYSE:EPAM) Shares Gap Up - What's Next?

Key Points

• EPAM Systems shares surged 7%, opening at $117.41 versus a prior close of $108.36 and last trading near $117.87.
• Analyst sentiment remains mixed, with six Buy ratings, ten Holds and one Sell; the consensus rating is Hold with a $116.47 price target.
• The company exceeded quarterly EPS expectations, reporting $3.38 versus $3.16, while revenue reached $1.41 billion and rose 4.6% year over year.

Shares of EPAM Systems, Inc. (NYSE:EPAM - Get Free Report) gapped up prior to trading on Thursday. The stock had previously closed at $108.36, but opened at $117.41. EPAM Systems shares last traded at $117.8730, with a volume of 191,223 shares trading hands.

Analyst Upgrades and Downgrades

Several research firms have recently commented on EPAM. Weiss Ratings restated a "sell (d+)" rating on shares of EPAM Systems in a research note on Tuesday, August 4th. Wedbush started coverage on shares of EPAM Systems in a research report on Monday, June 15th. They issued a "neutral" rating and a $99.00 price objective on the stock. JPMorgan Chase & Co. lowered shares of EPAM Systems from an "overweight" rating to a "neutral" rating and set a $120.00 price objective on the stock. in a research report on Wednesday, August 26th. Citigroup dropped their price objective on shares of EPAM Systems from $112.00 to $100.00 and set a "neutral" rating on the stock in a research note on Monday, July 27th. Finally, Wells Fargo & Company reduced their target price on shares of EPAM Systems from $151.00 to $125.00 and set an "overweight" rating for the company in a research note on Friday, July 10th. Six equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $116.47.

EPAM Systems Stock Up 7.0%

The company has a debt-to-equity ratio of 0.01, a quick ratio of 2.75 and a current ratio of 2.75. The firm has a market capitalization of $5.98 billion, a price-to-earnings ratio of 15.67, a PEG ratio of 1.10 and a beta of 1.38. The firm has a fifty day moving average price of $108.60 and a 200 day moving average price of $107.29.

EPAM Systems (NYSE:EPAM - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The information technology services provider reported $3.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.16 by $0.22. EPAM Systems had a return on equity of 15.84% and a net margin of 7.15%.The firm had revenue of $1.41 billion during the quarter, compared to analysts' expectations of $1.41 billion. During the same quarter in the prior year, the business posted $2.77 earnings per share. EPAM Systems's revenue was up 4.6% compared to the same quarter last year. EPAM Systems has set its FY 2026 guidance at 13.080-13.240 EPS and its Q3 2026 guidance at 3.380-3.460 EPS. As a group, sell-side analysts expect that EPAM Systems, Inc. will post 10.47 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Sequoia Financial Advisors LLC purchased a new position in EPAM Systems in the 2nd quarter valued at approximately $371,000. Tidal Investments LLC grew its holdings in EPAM Systems by 23.0% in the second quarter. Tidal Investments LLC now owns 79,826 shares of the information technology services provider's stock valued at $6,334,000 after purchasing an additional 14,917 shares during the last quarter. WINTON GROUP Ltd grew its holdings in EPAM Systems by 31.0% in the second quarter. WINTON GROUP Ltd now owns 131,440 shares of the information technology services provider's stock valued at $10,430,000 after purchasing an additional 31,134 shares during the last quarter. Engineers Gate Manager LP increased its position in shares of EPAM Systems by 341.1% in the second quarter. Engineers Gate Manager LP now owns 52,893 shares of the information technology services provider's stock valued at $4,197,000 after buying an additional 40,902 shares in the last quarter. Finally, Empirical Finance LLC purchased a new position in shares of EPAM Systems in the second quarter valued at $561,000. 91.58% of the stock is currently owned by institutional investors and hedge funds.

EPAM Systems Company Profile

EPAM Systems, Inc NYSE: EPAM is a global digital engineering and technology services company that helps businesses design, build and modernize software and digital platforms. Its services include software development, product and platform engineering, cloud services, data and analytics, artificial intelligence, cybersecurity, and technology consulting.

The company works with clients across industries including financial services, healthcare, life sciences, retail, travel and consumer products, media, telecommunications, and energy.

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