EPAM Systems (NYSE:EPAM) Cut to Hold at Zacks Investment Research

Zacks Investment Research cut shares of EPAM Systems (NYSE:EPAM) from a buy rating to a hold rating in a research report released on Wednesday morning, Zacks.com reports. The brokerage currently has $198.00 price target on the information technology services provider’s stock.

According to Zacks, “EPAM Systems is gaining traction from growth across all its industry verticals and majority of its locations. Digital transformation, focus on customer engagement and product development are key drivers. Moreover, deeper insights into artificial intelligence, machine learning and analytics are an upside. Acquisitions have been a key catalyst, which enabled the company to penetrate new markets plus diversify and broaden its product portfolio. EPAM’s healthy operating cash flow generation capability has helped it invest in growth initiatives. Shares of the company have outperformed its industry in the past year. Nonetheless, soft spending by the European banking clients and sluggish demand in the consumer and retail space, primarily in Europe, are nagging woes. Revenue recognition from various financial services clients in Russia is a dampener.”

Separately, Wedbush restated an outperform rating on shares of Purple Innovation in a research note on Wednesday, May 8th. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating and seven have given a buy rating to the company. The stock presently has an average rating of Buy and an average target price of $161.56.



EPAM Systems stock opened at $193.63 on Wednesday. EPAM Systems has a 52-week low of $104.77 and a 52-week high of $193.80. The stock has a fifty day simple moving average of $174.79. The firm has a market capitalization of $10.58 billion, a price-to-earnings ratio of 46.21, a P/E/G ratio of 2.34 and a beta of 1.41. The company has a quick ratio of 4.41, a current ratio of 4.41 and a debt-to-equity ratio of 0.11.

EPAM Systems (NYSE:EPAM) last released its quarterly earnings data on Thursday, May 9th. The information technology services provider reported $1.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.92 by $0.33. EPAM Systems had a net margin of 12.19% and a return on equity of 19.56%. The company had revenue of $521.30 million during the quarter, compared to analyst estimates of $519.11 million. During the same quarter in the prior year, the business earned $0.93 earnings per share. The business’s quarterly revenue was up 22.9% compared to the same quarter last year. Sell-side analysts forecast that EPAM Systems will post 4.24 earnings per share for the current fiscal year.

In other EPAM Systems news, CEO Arkadiy Dobkin sold 15,000 shares of the stock in a transaction on Monday, May 20th. The shares were sold at an average price of $166.13, for a total transaction of $2,491,950.00. Following the transaction, the chief executive officer now directly owns 1,713,490 shares in the company, valued at approximately $284,662,093.70. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Gary C. Abrahams sold 361 shares of the stock in a transaction on Monday, June 10th. The shares were sold at an average price of $177.16, for a total transaction of $63,954.76. Following the transaction, the vice president now owns 2,710 shares in the company, valued at $480,103.60. The disclosure for this sale can be found here. Insiders sold 362,189 shares of company stock valued at $63,001,372 over the last 90 days. Insiders own 5.30% of the company’s stock.

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. PNC Financial Services Group Inc. boosted its stake in shares of EPAM Systems by 190.8% in the 4th quarter. PNC Financial Services Group Inc. now owns 2,992 shares of the information technology services provider’s stock worth $347,000 after buying an additional 1,963 shares during the last quarter. BlackRock Inc. boosted its stake in shares of EPAM Systems by 3.5% in the 4th quarter. BlackRock Inc. now owns 2,278,512 shares of the information technology services provider’s stock worth $264,330,000 after buying an additional 76,660 shares during the last quarter. Bank of New York Mellon Corp lifted its position in EPAM Systems by 6.7% during the fourth quarter. Bank of New York Mellon Corp now owns 212,546 shares of the information technology services provider’s stock valued at $24,657,000 after purchasing an additional 13,289 shares in the last quarter. Northern Trust Corp lifted its position in EPAM Systems by 0.6% during the fourth quarter. Northern Trust Corp now owns 254,449 shares of the information technology services provider’s stock valued at $29,520,000 after purchasing an additional 1,521 shares in the last quarter. Finally, Great West Life Assurance Co. Can lifted its position in EPAM Systems by 7.7% during the fourth quarter. Great West Life Assurance Co. Can now owns 6,071 shares of the information technology services provider’s stock valued at $679,000 after purchasing an additional 435 shares in the last quarter. Hedge funds and other institutional investors own 90.80% of the company’s stock.

About EPAM Systems

EPAM Systems, Inc provides software product development and digital platform engineering services primarily in North America, Europe, Armenia, Belarus, Kazakhstan, Russia, Ukraine, Asia, and Australia. 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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