Grid Dynamics Stock Reaches New High After Analyst Upgrade

Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) achieved a new 52-week high during mid-day trading on Friday, following an upgrade from Needham & Company LLC. The investment firm raised its price target for the stock from $25.00 to $30.00, while maintaining a buy rating.

During trading, Grid Dynamics' stock soared to a peak of $25.50 before settling at $23.90, with a trading volume of 347,254 shares. The previous closing price was $20.48.

In addition to Needham's upgrade, several other research firms have recently published their analyses on Grid Dynamics. For instance, JPMorgan Chase & Co. increased its target price for the company from $17.00 to $18.00, designating it with an 'overweight' rating on October 30. Meanwhile, TD Cowen also raised their target from $16.00 to $19.00, giving the stock a 'buy' rating on November 1. Citigroup also lifted its price target from $17.00 to $18.00 in their report from October 28, maintaining a 'buy' rating as well.

Currently, five investment analysts have rated the stock as a buy, with one giving a strong buy rating. According to MarketBeat.com, Grid Dynamics holds a consensus rating of 'Buy' with an average target price set at $19.17.

Insider Sales at Grid Dynamics

In related news, Chief Financial Officer Anil Doradla sold 2,000 shares of the firm's stock on February 7. The shares were sold at an average price of $24.09, totaling $48,180. Following this transaction, Doradla still owns 341,012 shares, which are valued at approximately $8,214,979.08. This sale reflected a 0.58% decrease in his stake. The sale details were disclosed in a filing with the SEC.

Over the last quarter, insiders sold a total of 8,000 shares worth $171,780. Company insiders currently control about 7.20% of the company's equity.

Institutional Investor Activity

Recently, several institutional investors have adjusted their positions in Grid Dynamics. For example, Castleark Management LLC purchased a new stake in Grid Dynamics during the fourth quarter worth $5,804,000. PharVision Advisers LLC invested $214,000 in the same quarter.

Moreover, UBS Asset Management Americas LLC raised its stake in the company by 7.3%, now holding 119,913 shares worth $2,667,000, after acquiring an extra 8,116 shares in the recent quarter. Two Sigma Investments LP also bought a new stake valued at $1,219,000, and the State of Wyoming increased its holding by 4.1%, now controlling 26,495 shares valued at $589,000.

Currently, institutional investors own approximately 71.18% of Grid Dynamics’ total stock.

Stock Performance Overview

Grid Dynamics has shown a 4.3% increase in stock value recently. The company's stock has a 50-day moving average of $21.64 and a 200-day moving average of $17.65. Its market capitalization stands at $1.76 billion, with a P/E ratio of 534.25 and a beta of 1.01.

On February 20, Grid Dynamics announced its latest quarterly earnings results, reporting earnings per share (EPS) of $0.04 and missing the consensus estimate of $0.10 by $0.06. The company's revenue for the quarter totaled $100.28 million, surpassing analysts' expectations of $96.00 million. Grid Dynamics reported a negative return on equity of 0.33%, and its net margin was 1.15%. Looking ahead, analysts anticipate that Grid Dynamics will post an EPS of $0.18 for the current year.

About Grid Dynamics

Grid Dynamics Holdings, Inc. is a technology consulting firm that offers various services, including platform and product engineering as well as analytics services across North America, Europe, and other regions. The company specializes in developing scalable and secure cloud-based platforms and business applications, along with AI and machine learning services.

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