EPAM Systems (NYSE:EPAM) Shares Down 8.1% – What’s Next?

EPAM Systems, Inc. (NYSE:EPAM)’s stock price dropped 8.1% on Tuesday . The company traded as low as $195.43 and last traded at $193.39. Approximately 53,572 shares changed hands during trading, a decline of 92% from the average daily volume of 652,697 shares. The stock had previously closed at $210.42.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on EPAM shares. Mizuho increased their price objective on EPAM Systems from $225.00 to $228.00 and gave the company an “outperform” rating in a research report on Tuesday, November 11th. Wells Fargo & Company boosted their target price on EPAM Systems from $185.00 to $247.00 and gave the stock an “overweight” rating in a research report on Wednesday, January 14th. JPMorgan Chase & Co. increased their price target on EPAM Systems from $201.00 to $215.00 and gave the company an “overweight” rating in a research report on Friday, November 7th. Zacks Research downgraded EPAM Systems from a “strong-buy” rating to a “hold” rating in a report on Wednesday, January 28th. Finally, Truist Financial began coverage on shares of EPAM Systems in a research note on Tuesday, January 6th. They set a “hold” rating and a $220.00 price objective for the company. Ten analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $214.20.

EPAM Systems Trading Down 4.1%

The company has a market cap of $9.79 billion, a PE ratio of 27.05, a PEG ratio of 2.20 and a beta of 1.72. The company has a debt-to-equity ratio of 0.01, a quick ratio of 3.02 and a current ratio of 3.02. The company has a 50 day simple moving average of $207.80 and a two-hundred day simple moving average of $178.33.

EPAM Systems (NYSE:EPAM) last posted its quarterly earnings results on Thursday, November 6th. The information technology services provider reported $3.08 EPS for the quarter, topping the consensus estimate of $3.02 by $0.06. The business had revenue of $1.39 billion during the quarter, compared to analysts’ expectations of $1.39 billion. EPAM Systems had a net margin of 7.01% and a return on equity of 13.16%. The firm’s quarterly revenue was up 19.4% compared to the same quarter last year. During the same period last year, the company posted $3.12 earnings per share. Sell-side analysts forecast that EPAM Systems, Inc. will post 8.9 EPS for the current year.

EPAM Systems declared that its board has approved a stock repurchase plan on Tuesday, October 21st that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the information technology services provider to purchase up to 12.4% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s leadership believes its stock is undervalued.

Insider Buying and Selling

In other news, SVP Boris Shnayder sold 5,000 shares of the firm’s stock in a transaction dated Wednesday, December 10th. The stock was sold at an average price of $207.00, for a total transaction of $1,035,000.00. Following the completion of the sale, the senior vice president directly owned 15,645 shares of the company’s stock, valued at $3,238,515. This trade represents a 24.22% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Gary C. Abrahams sold 600 shares of the business’s stock in a transaction that occurred on Monday, November 17th. The shares were sold at an average price of $179.29, for a total value of $107,574.00. Following the completion of the sale, the vice president directly owned 2,720 shares of the company’s stock, valued at approximately $487,668.80. The trade was a 18.07% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 8,100 shares of company stock worth $1,597,074. Corporate insiders own 4.30% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Manning & Napier Advisors LLC acquired a new position in EPAM Systems during the third quarter worth $25,000. CYBER HORNET ETFs LLC acquired a new position in shares of EPAM Systems during the 2nd quarter valued at about $27,000. True Wealth Design LLC increased its holdings in shares of EPAM Systems by 1,870.0% during the 3rd quarter. True Wealth Design LLC now owns 197 shares of the information technology services provider’s stock valued at $30,000 after acquiring an additional 187 shares during the last quarter. MUFG Securities EMEA plc bought a new position in shares of EPAM Systems in the 2nd quarter valued at approximately $30,000. Finally, Sound Income Strategies LLC lifted its holdings in EPAM Systems by 279.5% in the 4th quarter. Sound Income Strategies LLC now owns 148 shares of the information technology services provider’s stock worth $31,000 after purchasing an additional 109 shares during the last quarter. Institutional investors own 91.58% of the company’s stock.

EPAM Systems Company Profile

EPAM Systems, Inc is a global provider of digital platform engineering and software development services. The company partners with clients across industries—such as financial services, healthcare, retail, and technology—to design, develop, and maintain complex software applications and digital experiences. EPAM’s offerings include custom software development, application management, infrastructure management, quality assurance, and testing services, enabling organizations to accelerate digital transformation and enhance operational efficiency.

In addition to its core engineering capabilities, EPAM delivers a range of specialized services, including product design and consulting, data and analytics, cloud computing, DevOps, and cybersecurity.