EPAM Systems (NYSE:EPAM) Downgraded by Zacks Investment Research to “Hold”

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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 note published on Wednesday morning, Zacks.com reports. The firm currently has $198.00 target price 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 investment analyst has rated the stock with a sell rating, three have assigned a hold rating and seven have issued a buy rating to the company. EPAM Systems has an average rating of Buy and an average target price of $161.56.

Shares of NYSE:EPAM traded up $2.94 during trading on Wednesday, hitting $191.05. The company’s stock had a trading volume of 516,100 shares, compared to its average volume of 400,257. The company has a 50-day simple moving average of $174.26. EPAM Systems has a 12 month low of $104.77 and a 12 month high of $191.31. The company has a current ratio of 4.41, a quick ratio of 4.41 and a debt-to-equity ratio of 0.11. The firm has a market cap of $10.30 billion, a price-to-earnings ratio of 48.86, a price-to-earnings-growth ratio of 2.17 and a beta of 1.42.

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

In other EPAM Systems news, CEO Arkadiy Dobkin sold 15,592 shares of the stock in a transaction that occurred on Monday, June 24th. The shares were sold at an average price of $172.27, for a total transaction of $2,686,033.84. Following the completion of the sale, the chief executive officer now directly owns 1,443,490 shares of the company’s stock, valued at approximately $248,670,022.30. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, VP Gary C. Abrahams sold 361 shares of the stock in a transaction that occurred 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 sale, the vice president now directly owns 2,710 shares of the company’s stock, valued at $480,103.60. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 362,189 shares of company stock valued at $63,001,372. Insiders own 5.40% of the company’s stock.

A number of institutional investors and hedge funds have recently made changes to their positions in EPAM. PNC Financial Services Group Inc. lifted its stake in EPAM Systems by 190.8% during the fourth quarter. PNC Financial Services Group Inc. now owns 2,992 shares of the information technology services provider’s stock worth $347,000 after purchasing an additional 1,963 shares during the period. BlackRock Inc. raised its stake in shares of EPAM Systems by 3.5% in the fourth quarter. BlackRock Inc. now owns 2,278,512 shares of the information technology services provider’s stock valued at $264,330,000 after acquiring an additional 76,660 shares during the last quarter. Bank of New York Mellon Corp raised its stake in shares of EPAM Systems by 6.7% in 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 acquiring an additional 13,289 shares during the last quarter. Northern Trust Corp raised its stake in shares of EPAM Systems by 0.6% in 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 acquiring an additional 1,521 shares during the last quarter. Finally, Great West Life Assurance Co. Can raised its stake in shares of EPAM Systems by 7.7% in 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 acquiring an additional 435 shares during the last quarter. 90.80% of the stock is owned by institutional investors and hedge funds.

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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