EPAM Systems (NYSE:EPAM) Shares Gap Down on Disappointing Earnings

EPAM Systems, Inc. (NYSE:EPAM)’s share price gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $258.11, but opened at $235.34. EPAM Systems shares last traded at $221.40, with a volume of 365,836 shares traded.

The information technology services provider reported $2.23 EPS for the quarter, missing the consensus estimate of $2.75 by ($0.52). EPAM Systems had a net margin of 9.68% and a return on equity of 14.92%.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on EPAM shares. Itau BBA Securities upgraded shares of EPAM Systems from a “market perform” rating to an “outperform” rating and set a $269.00 price target on the stock in a report on Friday, November 8th. Jefferies Financial Group reduced their target price on EPAM Systems from $305.00 to $288.00 and set a “buy” rating on the stock in a report on Tuesday, January 21st. Citigroup upped their price target on EPAM Systems from $207.00 to $210.00 and gave the stock a “neutral” rating in a research note on Monday, October 28th. Mizuho lifted their target price on shares of EPAM Systems from $245.00 to $282.00 and gave the company an “outperform” rating in a report on Wednesday, November 13th. Finally, Barclays upgraded EPAM Systems from an “equal weight” rating to an “overweight” rating and upped their price target for the stock from $250.00 to $290.00 in a report on Tuesday, December 17th. Six equities research analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, EPAM Systems presently has an average rating of “Moderate Buy” and an average target price of $269.83.

Insiders Place Their Bets

In other news, SVP Viktar Dvorkin sold 6,758 shares of the stock in a transaction that occurred on Wednesday, December 11th. The stock was sold at an average price of $256.53, for a total transaction of $1,733,629.74. Following the sale, the senior vice president now directly owns 13,000 shares in the company, valued at approximately $3,334,890. This represents a 34.20 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Jason D. Peterson sold 1,078 shares of the business’s stock in a transaction that occurred on Monday, January 27th. The shares were sold at an average price of $257.00, for a total value of $277,046.00. Following the transaction, the chief financial officer now owns 23,382 shares of the company’s stock, valued at $6,009,174. This represents a 4.41 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 8,300 shares of company stock valued at $2,129,924. Company insiders own 4.30% of the company’s stock.

Institutional Trading of EPAM Systems

Hedge funds have recently bought and sold shares of the company. Creative Planning grew its holdings in EPAM Systems by 100.8% in the 3rd quarter. Creative Planning now owns 7,178 shares of the information technology services provider’s stock worth $1,429,000 after buying an additional 3,604 shares in the last quarter. Sumitomo Mitsui DS Asset Management Company Ltd grew its stake in shares of EPAM Systems by 2.8% in the third quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 5,949 shares of the information technology services provider’s stock worth $1,184,000 after purchasing an additional 161 shares in the last quarter. Raymond James & Associates increased its holdings in shares of EPAM Systems by 1,741.1% during the third quarter. Raymond James & Associates now owns 36,694 shares of the information technology services provider’s stock valued at $7,303,000 after purchasing an additional 34,701 shares during the period. Allspring Global Investments Holdings LLC raised its stake in shares of EPAM Systems by 251.7% during the third quarter. Allspring Global Investments Holdings LLC now owns 19,128 shares of the information technology services provider’s stock valued at $3,807,000 after purchasing an additional 13,690 shares in the last quarter. Finally, Lecap Asset Management Ltd. acquired a new stake in EPAM Systems in the third quarter worth about $3,560,000. 91.58% of the stock is currently owned by institutional investors.

EPAM Systems Stock Down 14.9 %

The stock has a market cap of $12.46 billion, a P/E ratio of 28.51, a price-to-earnings-growth ratio of 3.92 and a beta of 1.51. The stock’s 50-day moving average is $244.77 and its 200-day moving average is $222.16. The company has a current ratio of 4.56, a quick ratio of 4.56 and a debt-to-equity ratio of 0.01.

EPAM Systems Company Profile

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, performance tuning, deployment, maintenance, and support services.