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Strength Seen in Grid Dynamics (GDYN): Can Its 9.4% Jump Turn into More Strength?
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Grid Dynamics (GDYN - Free Report) shares rallied 9.4% in the last trading session to close at $20.57. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 22.3% gain over the past four weeks.
Grid Dynamics extended its rally, driven by the latest follow-on offering of 10.1 million shares of its common stock to the public for $15.03 per share. Out of the 10.1 million shares, 4 million are being offered by the company, whereas the rest 6.1 million are being offered by its selling stockholders.
Notably, the move bodes well for Grid Dynamics, which has a strong balance sheet and increasing cash flow, with no long-term debt. The capital, which will be raised from the follow-on offering, will likely expand the company’s growth opportunities such as acquisition prospects or infusing more resources into product innovation through research and development.
This company is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of +500%. Revenues are expected to be $41.4 million, up 85.1% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Grid Dynamics, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on GDYN going forward to see if this recent jump can turn into more strength down the road.
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Strength Seen in Grid Dynamics (GDYN): Can Its 9.4% Jump Turn into More Strength?
Grid Dynamics (GDYN - Free Report) shares rallied 9.4% in the last trading session to close at $20.57. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 22.3% gain over the past four weeks.
Grid Dynamics extended its rally, driven by the latest follow-on offering of 10.1 million shares of its common stock to the public for $15.03 per share. Out of the 10.1 million shares, 4 million are being offered by the company, whereas the rest 6.1 million are being offered by its selling stockholders.
Notably, the move bodes well for Grid Dynamics, which has a strong balance sheet and increasing cash flow, with no long-term debt. The capital, which will be raised from the follow-on offering, will likely expand the company’s growth opportunities such as acquisition prospects or infusing more resources into product innovation through research and development.
This company is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of +500%. Revenues are expected to be $41.4 million, up 85.1% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Grid Dynamics, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on GDYN going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>