Zacks Investment Research Upgrades EPAM Systems (NYSE:EPAM) to “Buy”

EPAM Systems (NYSE:EPAM) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Wednesday, reports. The firm currently has a $199.00 price objective on the information technology services provider’s stock. Zacks Investment Research‘s price target points to a potential upside of 8.51% from the company’s current price.

According to Zacks, “EPAM Systems delivered solid second-quarter results. The company is gaining traction from broad-based growth across its industry verticals and geographies. Digital transformation, focus on customer engagement and product development are key drivers. Moreover, deeper insights into AI, machine learning and analytics are an upside. Strong performance of its Financial Services segment, driven by rising demand for asset management and payment processing offerings, is also a key driver. Additionally, acquisitions have been a key catalyst, which enabled the company to penetrate new markets plus diversify and broaden its product portfolio. Nonetheless, slowdown within certain consumer clients in Europe and lower growth for a few North American clients are an overhang. Further, adverse foreign currency volatility persists as a major concern.”

Several other equities research analysts have also recently issued reports on the stock. Wedbush reaffirmed an “outperform” rating and set a $180.00 price objective (up from $158.00) on shares of EPAM Systems in a research report on Wednesday, May 8th. Cantor Fitzgerald lifted their price target on shares of EPAM Systems from $187.00 to $212.00 and gave the stock an “overweight” rating in a research note on Friday, August 9th. Finally, Cowen lifted their price target on shares of EPAM Systems from $180.00 to $210.00 and gave the stock a “positive” rating in a research note on Wednesday, July 24th. They noted that the move was a valuation call. One investment analyst has rated the stock with a sell rating, two have given a hold rating and eight have issued a buy rating to the stock. The company has a consensus rating of “Buy” and a consensus target price of $173.10.

Shares of EPAM Systems stock traded down $6.22 during trading on Wednesday, hitting $183.39. 1,221 shares of the stock were exchanged, compared to its average volume of 400,534. The company has a market cap of $10.36 billion, a PE ratio of 46.65, a price-to-earnings-growth ratio of 2.19 and a beta of 1.38. The business’s 50-day simple moving average is $187.46. EPAM Systems has a 12-month low of $104.77 and a 12-month high of $201.00. The company has a current ratio of 4.41, a quick 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, August 8th. The information technology services provider reported $1.06 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.98 by $0.08. The business had revenue of $551.60 million during the quarter, compared to analysts’ expectations of $549.84 million. EPAM Systems had a net margin of 11.98% and a return on equity of 19.49%. The company’s revenue for the quarter was up 23.8% on a year-over-year basis. During the same period in the previous year, the company earned $1.01 EPS. On average, equities analysts forecast that EPAM Systems will post 4.3 earnings per share for the current year.

In other EPAM Systems news, CFO Jason D. Peterson sold 1,000 shares of EPAM Systems stock in a transaction on Tuesday, May 21st. The shares were sold at an average price of $170.25, for a total value of $170,250.00. Following the transaction, the chief financial officer now directly owns 13,039 shares in the company, valued at $2,219,889.75. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Arkadiy Dobkin sold 15,000 shares of EPAM Systems 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 completion of the transaction, the chief executive officer now owns 1,713,490 shares in the company, valued at $284,662,093.70. The disclosure for this sale can be found here. Insiders have sold a total of 337,189 shares of company stock worth $58,783,622 over the last quarter. 5.40% of the stock is owned by company insiders.

Hedge funds and other institutional investors have recently bought and sold shares of the business. Allen Investment Management LLC acquired a new position in EPAM Systems in the first quarter valued at $272,000. Cim LLC acquired a new position in shares of EPAM Systems during the second quarter worth about $644,000. Two Sigma Advisers LP acquired a new position in shares of EPAM Systems during the fourth quarter worth about $336,000. Wasatch Advisors Inc. increased its stake in shares of EPAM Systems by 2.7% during the first quarter. Wasatch Advisors Inc. now owns 611,167 shares of the information technology services provider’s stock worth $103,367,000 after acquiring an additional 16,194 shares during the period. Finally, Sciencast Management LP acquired a new position in shares of EPAM Systems during the first quarter worth about $496,000. Institutional investors own 91.42% 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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