Grid Dynamics (NASDAQ:GDYN) Shares Gap Up – Still a Buy?

Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) gapped up prior to trading on Friday . The stock had previously closed at $21.07, but opened at $23.08. Grid Dynamics shares last traded at $23.82, with a volume of 395,958 shares changing hands.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on GDYN. TD Cowen upped their target price on Grid Dynamics from $16.00 to $19.00 and gave the stock a “buy” rating in a report on Friday, November 1st. JPMorgan Chase & Co. increased their price target on shares of Grid Dynamics from $17.00 to $18.00 and gave the company an “overweight” rating in a research note on Wednesday, October 30th. Citigroup upped their target price on shares of Grid Dynamics from $17.00 to $18.00 and gave the company a “buy” rating in a report on Monday, October 28th. Finally, Needham & Company LLC upped their price objective on Grid Dynamics from $20.00 to $25.00 and gave the company a “buy” rating in a research note on Thursday, December 12th. Five analysts have rated the stock with a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, Grid Dynamics presently has a consensus rating of “Buy” and a consensus price target of $18.33.

Grid Dynamics Trading Up 7.7 %

The stock’s 50 day moving average is $18.13 and its 200 day moving average is $14.63. The firm has a market cap of $1.87 billion, a price-to-earnings ratio of 756.92 and a beta of 1.06.

Grid Dynamics (NASDAQ:GDYN) last released its quarterly earnings results on Thursday, October 31st. The company reported $0.10 earnings per share for the quarter, topping the consensus estimate of $0.09 by $0.01. The business had revenue of $87.40 million during the quarter, compared to analysts’ expectations of $85.09 million. Grid Dynamics had a return on equity of 0.15% and a net margin of 0.74%. The firm’s revenue for the quarter was up 12.9% compared to the same quarter last year. During the same period last year, the firm posted $0.08 EPS. On average, equities research analysts predict that Grid Dynamics Holdings, Inc. will post 0.03 EPS for the current year.

Insiders Place Their Bets

In other Grid Dynamics news, CEO Leonard Livschitz sold 15,000 shares of the firm’s stock in a transaction dated Tuesday, October 8th. The shares were sold at an average price of $14.56, for a total value of $218,400.00. Following the transaction, the chief executive officer now directly owns 3,460,901 shares of the company’s stock, valued at $50,390,718.56. This trade represents a 0.43 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Anil Doradla sold 3,000 shares of the company’s stock in a transaction that occurred on Friday, November 1st. The stock was sold at an average price of $17.66, for a total transaction of $52,980.00. Following the sale, the chief financial officer now directly owns 380,282 shares of the company’s stock, valued at approximately $6,715,780.12. This trade represents a 0.78 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 25,000 shares of company stock worth $399,260 in the last quarter. 7.20% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Wellington Management Group LLP increased its stake in shares of Grid Dynamics by 30.9% in the 3rd quarter. Wellington Management Group LLP now owns 2,859,808 shares of the company’s stock valued at $40,037,000 after purchasing an additional 675,419 shares during the last quarter. Lord Abbett & CO. LLC acquired a new stake in shares of Grid Dynamics in the 3rd quarter valued at approximately $8,589,000. Fourth Sail Capital LP grew its holdings in shares of Grid Dynamics by 138.0% during the 2nd quarter. Fourth Sail Capital LP now owns 769,924 shares of the company’s stock valued at $8,092,000 after purchasing an additional 446,477 shares during the last quarter. Summit Creek Advisors LLC lifted its stake in Grid Dynamics by 25.1% in the 2nd quarter. Summit Creek Advisors LLC now owns 1,147,992 shares of the company’s stock valued at $12,065,000 after purchasing an additional 230,688 shares during the last quarter. Finally, Dimensional Fund Advisors LP boosted its position in Grid Dynamics by 14.1% in the second quarter. Dimensional Fund Advisors LP now owns 1,672,906 shares of the company’s stock valued at $17,581,000 after buying an additional 206,201 shares in the last quarter. 71.18% of the stock is owned by institutional investors.

About Grid Dynamics

Grid Dynamics Holdings, Inc, together with its subsidiaries, provides technology consulting, platform and product engineering, and analytics services in North America, Europe, and internationally. It offers cloud platform and product engineering services, such as architecting, designing, and building scalable and secure cloud-based platforms and business applications; and AI/machine learning and data platform engineering services that build platforms to facilitate batch and streaming data ingestion, quality governance, orchestration, semantic modeling, observability, and analysis at scale.