Endava (NYSE:DAVA) Shares Down 6.8% After Earnings Miss

Endava plc (NYSE:DAVA)’s stock price fell 6.8% during trading on Friday after the company announced weaker than expected quarterly earnings. The stock traded as low as $28.20 and last traded at $28.88. 174,398 shares traded hands during mid-day trading, a decline of 70% from the average session volume of 590,057 shares. The stock had previously closed at $30.98.

The company reported ($0.04) earnings per share for the quarter, missing analysts’ consensus estimates of $0.06 by ($0.10). The company had revenue of $221.14 million for the quarter, compared to analysts’ expectations of $220.59 million. Endava had a return on equity of 7.13% and a net margin of 5.69%.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on DAVA. Needham & Company LLC lowered their target price on Endava from $50.00 to $42.00 and set a “buy” rating for the company in a report on Friday. JPMorgan Chase & Co. decreased their price objective on Endava from $43.00 to $41.00 and set an “overweight” rating for the company in a report on Friday. Wedbush decreased their price objective on Endava from $65.00 to $50.00 and set an “outperform” rating for the company in a report on Thursday. Redburn Atlantic started coverage on Endava in a research report on Friday. They issued a “neutral” rating and a $33.10 target price on the stock. Finally, HSBC raised Endava from a “hold” rating to a “buy” rating and set a $45.00 target price on the stock in a research report on Wednesday, May 1st. Three investment analysts have rated the stock with a hold rating and seven have given a buy rating to the company. Based on data from MarketBeat, Endava has a consensus rating of “Moderate Buy” and a consensus target price of $46.41.

Institutional Investors Weigh In On Endava

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Redwood Investments LLC grew its position in shares of Endava by 666.2% during the 4th quarter. Redwood Investments LLC now owns 40,455 shares of the company’s stock valued at $3,149,000 after acquiring an additional 35,175 shares during the period. Simon Quick Advisors LLC acquired a new stake in shares of Endava during the 4th quarter valued at about $5,074,000. Adage Capital Partners GP L.L.C. grew its position in shares of Endava by 76.9% during the 3rd quarter. Adage Capital Partners GP L.L.C. now owns 115,000 shares of the company’s stock valued at $6,595,000 after acquiring an additional 50,000 shares during the period. Janney Montgomery Scott LLC acquired a new stake in shares of Endava during the 3rd quarter valued at about $280,000. Finally, FMR LLC grew its position in shares of Endava by 16.5% during the 3rd quarter. FMR LLC now owns 1,807,318 shares of the company’s stock valued at $103,650,000 after acquiring an additional 256,250 shares during the period. 62.23% of the stock is owned by institutional investors and hedge funds.

Endava Stock Performance

The stock has a market capitalization of $1.73 billion, a PE ratio of 33.37 and a beta of 1.14. The stock’s 50 day moving average is $32.62 and its two-hundred day moving average is $54.11.

Endava Company Profile

Endava plc provides technology services for clients in the consumer products, healthcare, mobility, and retail verticals in North America, Europe, the United Kingdom, and internationally. It offers ideation and production services in the payments and financial services, telecommunications, media, and technology verticals; and business analysis, data analytics, program management, digital product strategy, private equity value enhancement, IT strategy, architecture, extended reality, machine learning and artificial intelligence, product design, and user experience and visual design services.