Grid Dynamics (NASDAQ:GDYN) Sees Unusually-High Trading Volume – Should You Buy?

Grid Dynamics Holdings, Inc. (NASDAQ:GDYN) saw an uptick in trading volume on Tuesday . 253,674 shares traded hands during trading, a decline of 39% from the previous session’s volume of 417,146 shares.The stock last traded at $22.91 and had previously closed at $22.50.

Analyst Upgrades and Downgrades

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

Grid Dynamics Stock Performance

The company has a market cap of $1.86 billion, a price-to-earnings ratio of 749.92 and a beta of 1.06. The firm’s 50 day simple moving average is $18.13 and its 200-day simple moving average is $14.67.

Grid Dynamics (NASDAQ:GDYN) last announced its quarterly earnings data on Thursday, October 31st. The company reported $0.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.09 by $0.01. The company had revenue of $87.40 million during the quarter, compared to analysts’ expectations of $85.09 million. Grid Dynamics had a net margin of 0.74% and a return on equity of 0.15%. Grid Dynamics’s revenue was up 12.9% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.08 EPS. As a group, sell-side analysts expect that Grid Dynamics Holdings, Inc. will post 0.03 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Anil Doradla sold 4,000 shares of the firm’s stock in a transaction dated Thursday, November 7th. The stock was sold at an average price of $17.66, for a total transaction of $70,640.00. Following the completion of the sale, the chief financial officer now directly owns 376,282 shares of the company’s stock, valued at approximately $6,645,140.12. This trade represents a 1.05 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Leonard Livschitz sold 15,000 shares of the company’s stock in a transaction dated Tuesday, October 8th. The shares were sold at an average price of $14.56, for a total transaction of $218,400.00. Following the completion of the transaction, the chief executive officer now directly owns 3,460,901 shares in the company, valued at $50,390,718.56. The trade was a 0.43 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 25,000 shares of company stock valued at $399,260 in the last three months. 7.20% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Grid Dynamics

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Wellington Management Group LLP raised its position in Grid Dynamics by 30.9% in the third 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 period. Lord Abbett & CO. LLC acquired a new position in Grid Dynamics during the 3rd quarter worth about $8,589,000. Fourth Sail Capital LP boosted its holdings in 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 acquiring an additional 446,477 shares during the period. Summit Creek Advisors LLC boosted its holdings in Grid Dynamics by 25.1% during the 2nd quarter. Summit Creek Advisors LLC now owns 1,147,992 shares of the company’s stock valued at $12,065,000 after acquiring an additional 230,688 shares during the period. Finally, Dimensional Fund Advisors LP grew its position in Grid Dynamics by 14.1% in the 2nd quarter. Dimensional Fund Advisors LP now owns 1,672,906 shares of the company’s stock valued at $17,581,000 after acquiring an additional 206,201 shares in the last quarter. 71.18% of the stock is owned by hedge funds and other 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.