Grid Dynamics (NASDAQ:GDYN) Hits New 52-Week High - Should You Buy?

Key Points

• Grid Dynamics hit a 52-week high of $14.07, up from its previous close of $13.30.
• The company beat quarterly expectations, reporting EPS of $0.18 versus $0.13 forecast and revenue of $114.29 million versus $112.77 million expected.
• Analyst views are mixed: the consensus rating is Hold with an $11.80 price target, below the current share price. Insiders have also sold shares in recent months.

Grid Dynamics Holdings, Inc. (NASDAQ:GDYN - Get Free Report) reached a new 52-week high during mid-day trading on Tuesday. The stock traded as high as $14.07 and last traded at $14.06, with a volume of 2,581,570 shares trading hands. The stock had previously closed at $13.30.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on GDYN shares. Zacks Research cut shares of Grid Dynamics from a "strong-buy" rating to a "hold" rating in a research note on Thursday, October 15th. Wall Street Zen upgraded Grid Dynamics from a "hold" rating to a "buy" rating in a research report on Saturday. JPMorgan Chase & Co. raised their target price on Grid Dynamics from $8.00 to $11.00 and gave the stock an "overweight" rating in a research note on Friday, October 30th. Needham & Company LLC boosted their price target on shares of Grid Dynamics from $10.00 to $15.00 and gave the company a "buy" rating in a research report on Friday, October 30th. Finally, TD Cowen boosted their price objective on Grid Dynamics from $9.00 to $13.00 and gave the stock a "buy" rating in a report on Friday, October 30th. Four equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $11.80.

Grid Dynamics Stock Performance

The firm has a market cap of $1.14 billion, a P/E ratio of 156.22 and a beta of 0.88. The business has a 50-day simple moving average of $8.79 and a 200 day simple moving average of $7.13.

Grid Dynamics (NASDAQ:GDYN - Get Free Report) last posted its earnings results on Thursday, October 29th. The company reported $0.18 EPS for the quarter, topping the consensus estimate of $0.13 by $0.05. Grid Dynamics had a net margin of 1.81% and a return on equity of 3.24%. The firm had revenue of $114.29 million during the quarter, compared to analysts' expectations of $112.77 million. On average, research analysts expect that Grid Dynamics Holdings, Inc. will post 0.26 EPS for the current year.

Insiders Place Their Bets

In related news, CFO Anil Doradla sold 20,000 shares of the stock in a transaction on Friday, October 30th. The stock was sold at an average price of $10.51, for a total transaction of $210,200.00. Following the sale, the chief financial officer directly owned 374,509 shares of the company's stock, valued at $3,936,089.59. This trade represents a 5.07% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Yury Gryzlov sold 4,715 shares of the firm's stock in a transaction dated Tuesday, November 3rd. The shares were sold at an average price of $13.55, for a total transaction of $63,888.25. Following the sale, the chief operating officer directly owned 480,063 shares in the company, valued at approximately $6,504,853.65. The trade was a 0.97% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 118,339 shares of company stock valued at $1,407,567. 6.50% of the stock is currently owned by corporate insiders.

Institutional Trading of Grid Dynamics

Large investors have recently modified their holdings of the company. PNC Financial Services Group Inc. grew its holdings in Grid Dynamics by 60.1% during the first quarter. PNC Financial Services Group Inc. now owns 8,315 shares of the company's stock valued at $47,000 after purchasing an additional 3,122 shares during the period. Sequoia Financial Advisors LLC purchased a new position in shares of Grid Dynamics during the 2nd quarter valued at about $75,000. FNY Investment Advisers LLC bought a new position in shares of Grid Dynamics during the 2nd quarter valued at approximately $99,000. Vise Technologies Inc. bought a new position in shares of Grid Dynamics during the 3rd quarter valued at approximately $103,000. Finally, StoneX Group Inc. purchased a new stake in Grid Dynamics in the 3rd quarter worth approximately $120,000. Institutional investors own 71.18% of the company's stock.

About Grid Dynamics

Grid Dynamics Holdings, Inc. NASDAQ: GDYN is a digital engineering and technology services company that helps enterprises modernize their technology infrastructure and develop data-driven products. Its services include software engineering, cloud computing, data engineering, artificial intelligence and machine learning, user experience design, and application modernization. The company develops and implements technology solutions for industries including retail and consumer packaged goods, financial services, manufacturing, healthcare, and technology.

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