Grid Dynamics (NASDAQ:GDYN) Reaches New 1-Year High Following Strong Earnings

Key Points

• Grid Dynamics shares reached a new 52-week high after the company reported quarterly EPS of $0.18, exceeding the $0.13 analyst consensus, while revenue of $114.29 million also topped estimates.
• Analyst sentiment remains mixed: Needham raised its price target to $15 and maintained a Buy rating, but the consensus rating is Hold with an average target of $10.40.
• Institutional investors own 71.18% of the company, while insiders own 6.50%; insiders sold 14,409 shares worth approximately $115,625 over the past three months.

Grid Dynamics Holdings, Inc. (NASDAQ:GDYN - Get Free Report)'s share price reached a new 52-week high during mid-day trading on Friday after the company announced better than expected quarterly earnings. The company traded as high as $11.60 and last traded at $11.7680, with a volume of 781,553 shares changing hands. The stock had previously closed at $9.49.

The company reported $0.18 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.13 by $0.05. Grid Dynamics had a return on equity of 1.90% and a net margin of 0.68%. The firm had revenue of $114.29 million during the quarter, compared to analyst estimates of $112.77 million.

Analyst Ratings Changes

Several equities research analysts have recently commented on the stock. Weiss Ratings restated a "sell (d)" rating on shares of Grid Dynamics in a report on Thursday. JPMorgan Chase & Co. lifted their price objective on shares of Grid Dynamics from $7.00 to $8.00 and gave the company an "overweight" rating in a report on Friday, July 31st. Zacks Research downgraded shares of Grid Dynamics from a "strong-buy" rating to a "hold" rating in a research note on Thursday, October 15th. Needham & Company LLC upped their target price on Grid Dynamics from $10.00 to $15.00 and gave the stock a "buy" rating in a report on Friday. Finally, TD Cowen increased their target price on Grid Dynamics from $8.00 to $9.00 and gave the company a "buy" rating in a research report on Friday, July 31st. Four research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $10.40.

Insider Buying and Selling

In other news, COO Yury Gryzlov sold 4,849 shares of the business's stock in a transaction dated Thursday, October 8th. The stock was sold at an average price of $8.00, for a total transaction of $38,792.00. Following the sale, the chief operating officer owned 495,290 shares in the company, valued at approximately $3,962,320. The trade was a 0.97% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 14,409 shares of company stock valued at $115,625 in the last three months. Company insiders own 6.50% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Mirae Asset Global Investments Co. Ltd. purchased a new position in shares of Grid Dynamics in the third quarter worth about $262,000. Vise Technologies Inc. acquired a new stake in shares of Grid Dynamics during the third quarter worth about $103,000. Sequoia Financial Advisors LLC purchased a new stake in Grid Dynamics in the second quarter valued at approximately $75,000. Squarepoint Ops LLC acquired a new position in Grid Dynamics in the 2nd quarter worth approximately $2,702,000. Finally, Public Employees Retirement System of Ohio acquired a new position in Grid Dynamics in the 2nd quarter worth approximately $234,000. Institutional investors and hedge funds own 71.18% of the company's stock.

Grid Dynamics Stock Performance

The company has a market cap of $974.53 million, a price-to-earnings ratio of 600.90 and a beta of 0.97. The company's fifty day moving average is $8.01 and its two-hundred day moving average is $6.98.

Grid Dynamics Company Profile

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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