EPAM Systems (NYSE:EPAM) Shares Gap Up After Strong Earnings

EPAM Systems, Inc. (NYSE:EPAMGet Rating)’s share price gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $370.03, but opened at $390.00. EPAM Systems shares last traded at $406.26, with a volume of 8,872 shares.

The information technology services provider reported $2.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.71 by $0.67. The company had revenue of $1.19 billion during the quarter, compared to analyst estimates of $1.12 billion. EPAM Systems had a return on equity of 21.72% and a net margin of 8.21%. The company’s revenue for the quarter was up 35.5% compared to the same quarter last year. During the same period in the previous year, the company earned $1.90 EPS.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on EPAM shares. Morgan Stanley boosted their price objective on EPAM Systems from $450.00 to $465.00 in a research report on Friday, May 6th. Wolfe Research upgraded EPAM Systems from a “peer perform” rating to an “outperform” rating and set a $390.00 price objective for the company in a research report on Monday, April 11th. Barclays boosted their price objective on EPAM Systems from $350.00 to $410.00 in a research report on Monday, May 9th. Bank of America upgraded EPAM Systems from a “neutral” rating to a “buy” rating and boosted their price objective for the company from $312.00 to $400.00 in a research report on Friday, May 6th. Finally, Susquehanna Bancshares upgraded EPAM Systems to a “positive” rating in a research report on Monday, May 16th. One investment analyst has rated the stock with a hold rating and eleven have assigned a buy rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $444.62.

Insider Transactions at EPAM Systems

In other news, CMO Elaina Shekhter sold 100 shares of the company’s stock in a transaction that occurred on Tuesday, June 7th. The stock was sold at an average price of $347.10, for a total transaction of $34,710.00. Following the sale, the chief marketing officer now owns 7,671 shares in the company, valued at approximately $2,662,604.10. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. In related news, CFO Jason D. Peterson sold 400 shares of the stock in a transaction on Friday, May 20th. The stock was sold at an average price of $335.00, for a total value of $134,000.00. Following the sale, the chief financial officer now owns 11,762 shares in the company, valued at approximately $3,940,270. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CMO Elaina Shekhter sold 100 shares of the stock in a transaction on Tuesday, June 7th. The shares were sold at an average price of $347.10, for a total value of $34,710.00. Following the completion of the sale, the chief marketing officer now owns 7,671 shares in the company, valued at approximately $2,662,604.10. The disclosure for this sale can be found here. Insiders have sold a total of 1,500 shares of company stock worth $493,710 in the last 90 days. Corporate insiders own 4.10% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in EPAM. Commonwealth Equity Services LLC grew its holdings in EPAM Systems by 70.9% in the 4th quarter. Commonwealth Equity Services LLC now owns 3,550 shares of the information technology services provider’s stock valued at $2,373,000 after buying an additional 1,473 shares in the last quarter. CWM LLC acquired a new position in EPAM Systems in the 4th quarter valued at $803,000. Raymond James Trust N.A. acquired a new position in EPAM Systems in the 4th quarter valued at $318,000. Nomura Asset Management Co. Ltd. grew its holdings in EPAM Systems by 7.2% in the 4th quarter. Nomura Asset Management Co. Ltd. now owns 11,817 shares of the information technology services provider’s stock valued at $7,899,000 after buying an additional 793 shares in the last quarter. Finally, Assenagon Asset Management S.A. grew its holdings in EPAM Systems by 44.0% in the 4th quarter. Assenagon Asset Management S.A. now owns 3,814 shares of the information technology services provider’s stock valued at $2,549,000 after buying an additional 1,165 shares in the last quarter. 95.24% of the stock is owned by institutional investors and hedge funds.

EPAM Systems Trading Up 2.9 %

The stock has a market capitalization of $24.43 billion, a price-to-earnings ratio of 69.05, a price-to-earnings-growth ratio of 3.33 and a beta of 1.77. The company has a debt-to-equity ratio of 0.01, a quick ratio of 3.32 and a current ratio of 3.45. The business has a fifty day simple moving average of $322.78 and a 200 day simple moving average of $328.27.

About EPAM Systems

(Get Rating)

EPAM Systems, Inc provides digital platform engineering and software development services worldwide. The company offers engineering services, including requirements analysis and platform selection, customization, cross-platform migration, implementation, and integration; infrastructure management services, such as software development, testing, and maintenance with private, public, and mobile infrastructures for application, database, network, server, storage, and systems operations management, as well as monitoring, incident notification, and resolution services; and maintenance and support services.

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