monday.com (NASDAQ:MNDY) Shares Gap Down – Should You Sell?

monday.com Ltd. (NASDAQ:MNDY)’s share price gapped down before the market opened on Monday . The stock had previously closed at $93.13, but opened at $81.40. monday.com shares last traded at $85.4510, with a volume of 1,409,599 shares trading hands.

Trending Headlines about monday.com

Here are the key news stories impacting monday.com this week:

• Positive Sentiment: monday.com reported second-quarter adjusted earnings of $1.48 per share, above the $1.11–$1.14 consensus range, while revenue reached $364.6 million versus expectations of approximately $355.6 million. Revenue increased 21.9% year over year, and margins improved. monday.com revenue outlook weighs on shares despite Q2 earnings beat
• Neutral Sentiment: Management forecast third-quarter revenue of $368 million to $370 million, representing 16% to 17% year-over-year growth, and reaffirmed its full-year 2026 revenue outlook rather than raising it after the quarterly beat. monday.com earnings and guidance
• Negative Sentiment: Third-quarter revenue guidance was below the approximately $372.8 million analyst consensus. The modest outlook raised concerns that growth is slowing faster than expected, overshadowing the better-than-expected Q2 results. monday.com falls after Q3 revenue outlook miss
• Negative Sentiment: The company is restructuring around its AI Work Platform and enterprise customers, including a previously announced workforce reduction of roughly 20%—about 630 employees. Although intended to support longer-term efficiency and AI growth, the organizational disruption adds uncertainty for investors. monday.com workforce reduction and AI restructuring

Analyst Upgrades and Downgrades

MNDY has been the topic of several recent research reports. TD Cowen increased their price objective on shares of monday.com from $100.00 to $110.00 and gave the stock a “buy” rating in a research note on Tuesday, May 12th. BTIG Research reduced their target price on shares of monday.com from $115.00 to $105.00 and set a “buy” rating for the company in a report on Tuesday, July 14th. Weiss Ratings reiterated a “sell (d+)” rating on shares of monday.com in a research report on Thursday, June 11th. UBS Group dropped their price target on shares of monday.com from $93.00 to $85.00 and set a “neutral” rating on the stock in a research note on Tuesday, May 12th. Finally, Zacks Research downgraded shares of monday.com from a “strong-buy” rating to a “hold” rating in a research report on Friday, May 1st. Seventeen research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, monday.com has an average rating of “Moderate Buy” and an average price target of $126.78.

monday.com Stock Down 7.1%

The stock’s 50 day moving average price is $80.75 and its 200-day moving average price is $79.61. The stock has a market capitalization of $4.43 billion, a PE ratio of 37.64, a PEG ratio of 4.66 and a beta of 1.24.

monday.com (NASDAQ:MNDY) last issued its quarterly earnings results on Monday, August 10th. The company reported $1.48 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.11 by $0.37. The business had revenue of $364.62 million during the quarter, compared to analyst estimates of $355.55 million. monday.com had a return on equity of 5.10% and a net margin of 9.17%.monday.com’s revenue for the quarter was up 21.9% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.09 EPS. On average, analysts forecast that monday.com Ltd. will post 1.59 earnings per share for the current year.

Institutional Trading of monday.com

Several institutional investors have recently made changes to their positions in MNDY. NewEdge Advisors LLC boosted its stake in monday.com by 2,120.0% in the 1st quarter. NewEdge Advisors LLC now owns 111 shares of the company’s stock worth $27,000 after purchasing an additional 106 shares during the period. Advisory Services Network LLC bought a new stake in shares of monday.com during the third quarter valued at approximately $28,000. EverSource Wealth Advisors LLC raised its position in shares of monday.com by 498.6% during the first quarter. EverSource Wealth Advisors LLC now owns 425 shares of the company’s stock valued at $29,000 after buying an additional 354 shares during the last quarter. Quarry LP purchased a new position in shares of monday.com in the fourth quarter worth $29,000. Finally, Huntington National Bank lifted its holdings in shares of monday.com by 6,040.0% in the fourth quarter. Huntington National Bank now owns 307 shares of the company’s stock worth $45,000 after buying an additional 302 shares in the last quarter. Hedge funds and other institutional investors own 73.70% of the company’s stock.

About monday.com

monday.com is a software-as-a-service (SaaS) company that provides a cloud-based Work Operating System (Work OS) designed to help teams plan, organize and track their work. The platform offers customizable workflows that support project management, task delegation, time tracking and collaboration across departments. monday.com’s visual interface enables users to create boards, automations and dashboards to centralize information and streamline processes without requiring extensive coding knowledge.

The company’s product portfolio includes monday Work OS, which can be adapted for use cases ranging from marketing campaign management and sales pipelines to software development sprints and human resources onboarding.