Endava (NYSE:DAVA) Downgraded to Strong Sell Rating by Zacks Research

Zacks Research lowered shares of Endava (NYSE:DAVA) from a hold rating to a strong sell rating in a research note published on Thursday,Zacks.com reports.

Other analysts also recently issued research reports about the stock. CLSA set a $5.00 price target on shares of Endava in a report on Friday. JPMorgan Chase & Co. reaffirmed an “underweight” rating and set a $5.00 price target (down from $9.00) on shares of Endava in a report on Friday. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Endava in a report on Tuesday, April 7th. Needham & Company LLC dropped their price target on shares of Endava from $7.00 to $5.00 and set a “buy” rating on the stock in a report on Thursday. Finally, Morgan Stanley dropped their price target on shares of Endava from $8.00 to $4.00 and set an “equal weight” rating on the stock in a report on Friday. Two analysts have rated the stock with a Buy rating, four have issued a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, the company presently has an average rating of “Reduce” and an average price target of $7.14.

Endava Stock Performance

Shares of DAVA stock opened at $3.34 on Thursday. Endava has a one year low of $3.20 and a one year high of $17.36. The company’s 50-day moving average is $4.33 and its 200 day moving average is $5.62. The company has a market capitalization of $187.46 million, a price-to-earnings ratio of -0.32 and a beta of 1.11. The company has a debt-to-equity ratio of 0.36, a quick ratio of 2.39 and a current ratio of 2.39.

Endava (NYSE:DAVA) last announced its quarterly earnings results on Thursday, May 21st. The company reported $0.07 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.27 by ($0.20). The company had revenue of $236.44 million for the quarter, compared to analysts’ expectations of $242.79 million. Endava had a negative net margin of 57.01% and a positive return on equity of 2.14%. Endava has set its Q4 2026 guidance at 0.120-0.180 EPS and its FY 2026 guidance at 0.610-0.660 EPS. Sell-side analysts expect that Endava will post 0.48 EPS for the current fiscal year.

Hedge Funds Weigh In On Endava

Several institutional investors have recently made changes to their positions in DAVA. T. Rowe Price Investment Management Inc. bought a new position in shares of Endava in the 4th quarter worth approximately $24,563,000. Paradice Investment Management LLC lifted its stake in shares of Endava by 61.9% in the 4th quarter. Paradice Investment Management LLC now owns 3,029,847 shares of the company’s stock worth $19,149,000 after purchasing an additional 1,157,921 shares during the period. Invenomic Capital Management LP bought a new position in shares of Endava in the 4th quarter worth approximately $4,691,000. CDAM UK Ltd lifted its stake in shares of Endava by 28.2% in the 4th quarter. CDAM UK Ltd now owns 2,979,658 shares of the company’s stock worth $18,831,000 after purchasing an additional 655,078 shares during the period. Finally, Prescott Group Capital Management L.L.C. lifted its stake in shares of Endava by 100.3% in the 3rd quarter. Prescott Group Capital Management L.L.C. now owns 1,216,354 shares of the company’s stock worth $11,069,000 after purchasing an additional 609,215 shares during the period. Institutional investors own 62.23% of the company’s stock.

Key Headlines Impacting Endava

Here are the key news stories impacting Endava this week:

• Positive Sentiment: Needham & Company trimmed its price target but kept a buy rating, suggesting some analysts still see rebound potential for Endava despite the weak quarter.
• Neutral Sentiment: TD Cowen lowered its target to $4.00 and maintained a hold view, reflecting a more cautious but not outright bearish stance on the name.
• Neutral Sentiment: Morgan Stanley cut its target to $4.00 and kept an equal weight rating, indicating the firm sees limited near-term upside but not a dramatic deterioration beyond current expectations.
• Neutral Sentiment: JPMorgan reaffirmed an underweight rating while reducing its target, underscoring that sentiment on the stock remains subdued after the earnings update.
• Negative Sentiment: Endava reported fiscal Q3 EPS of $0.07 versus the $0.27 consensus and revenue of $236.4 million versus $242.8 million expected, then cut FY26 EPS and revenue guidance below estimates. Endava Announces Third Quarter Fiscal Year 2026 Results
• Negative Sentiment: Johnson Fistel said it is investigating potential securities-law violations tied to investor losses, adding a legal-overhang headline that may further weigh on shares. Endava plc Shareholders Are Encouraged to Reach Out to Johnson Fistel for More Information about Potentially Recovering Their Losses

About Endava

Endava PLC is a publicly traded technology services company specializing in digital transformation and agile software development. The firm helps enterprise clients design, build and manage custom software solutions across industries such as financial services, payments, retail, telecommunications and media. Its service offerings span end-to-end product design, customer experience, application development, quality engineering, DevOps, automation and artificial intelligence, all delivered through agile methodologies.

Founded in 2000, Endava has grown from a small software provider into a global IT partner.