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

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Zacks Investment Research cut shares of EPAM Systems (NYSE:EPAM) from a buy rating to a hold rating in a research report sent to investors on Wednesday morning, Zacks.com reports. They currently have $198.00 price objective 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 reissued an outperform rating on shares of Purple Innovation in a report on Wednesday, May 8th. One equities research analyst has rated the stock with a sell rating, three have given a hold rating and seven have given a buy rating to the stock. The stock presently has a consensus rating of Buy and an average target price of $161.56.

Shares of NYSE:EPAM opened at $193.63 on Wednesday. The stock has a market capitalization of $10.58 billion, a P/E ratio of 46.21, a price-to-earnings-growth ratio of 2.34 and a beta of 1.41. The company has a 50-day moving average price of $174.79. 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 has a fifty-two week low of $104.77 and a fifty-two week high of $193.80.

EPAM Systems (NYSE:EPAM) last released its quarterly earnings data on Thursday, May 9th. The information technology services provider reported $1.25 EPS for the quarter, topping analysts’ consensus estimates of $0.92 by $0.33. The firm had revenue of $521.30 million for the quarter, compared to the consensus estimate of $519.11 million. EPAM Systems had a net margin of 12.19% and a return on equity of 19.56%. The firm’s revenue was up 22.9% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.93 earnings per share. As a group, 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 125,000 shares of the company’s stock in a transaction dated Monday, June 10th. The shares were sold at an average price of $177.08, for a total value of $22,135,000.00. Following the sale, the chief executive officer now owns 1,593,490 shares of the company’s stock, valued at $282,175,209.20. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Gary C. Abrahams sold 361 shares of the company’s stock in a transaction dated Monday, June 10th. The shares were sold at an average price of $177.16, for a total transaction of $63,954.76. Following the completion of the sale, the vice president now directly owns 2,710 shares in the company, valued at approximately $480,103.60. The disclosure for this sale can be found here. In the last three months, insiders have sold 362,189 shares of company stock worth $63,001,372. 5.30% of the stock is owned by insiders.

Hedge funds and other institutional investors have recently made changes to their positions in the business. Penserra Capital Management LLC purchased a new stake in shares of EPAM Systems in the first quarter valued at about $37,000. Harel Insurance Investments & Financial Services Ltd. purchased a new stake in shares of EPAM Systems in the first quarter valued at about $85,000. Meeder Asset Management Inc. lifted its holdings in shares of EPAM Systems by 1,227.5% in the first quarter. Meeder Asset Management Inc. now owns 677 shares of the information technology services provider’s stock valued at $115,000 after purchasing an additional 626 shares in the last quarter. Quantamental Technologies LLC purchased a new stake in shares of EPAM Systems in the first quarter valued at about $169,000. Finally, Oakbrook Investments LLC purchased a new stake in shares of EPAM Systems in the first quarter valued at about $228,000. 90.80% of the stock is currently owned by institutional investors.

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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