monday.com (NASDAQ:MNDY) Shares Gap Down Following Analyst Downgrade

monday.com Ltd. (NASDAQ:MNDY) gapped down prior to trading on Monday after Citigroup lowered their price target on the stock from $154.00 to $132.00. The stock had previously closed at $93.13, but opened at $81.40. Citigroup currently has a buy rating on the stock. monday.com shares last traded at $85.4510, with a volume of 1,409,599 shares trading hands.

A number of other equities analysts have also recently commented on the company. Oppenheimer set a $115.00 price target on monday.com in a report on Monday, May 11th. Jefferies Financial Group restated a “hold” rating and set a $95.00 price objective on shares of monday.com in a research report on Monday. Barclays increased their target price on monday.com from $95.00 to $100.00 and gave the company an “overweight” rating in a research report on Tuesday, May 12th. Canaccord Genuity Group reduced their price target on monday.com from $140.00 to $115.00 and set a “buy” rating on the stock in a report on Tuesday, May 12th. Finally, Weiss Ratings reiterated a “sell (d+)” rating on shares of monday.com in a report on Thursday, June 11th. Fifteen investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $124.25.

Key Stories Impacting monday.com

Here are the key news stories impacting monday.com this week:

• Positive Sentiment: monday.com reported second-quarter adjusted earnings of $1.48 per share, well above the $1.14 analyst consensus, while revenue reached $364.6 million versus expectations of $355.6 million. Revenue increased approximately 22% year over year, margins improved, and AI product annual recurring revenue reportedly doubled from the prior quarter. monday.com Q2 earnings and revenue article
• Positive Sentiment: Several analysts remain constructive. TD Cowen reaffirmed a Buy rating with a $110 price target, while BTIG maintained Buy with a $105 target. Citigroup also retained Buy despite lowering its target to $132, and Wells Fargo maintained Overweight with a $120 target.
• Neutral Sentiment: Piper Sandler reaffirmed a Neutral rating with a $90 price target, indicating limited near-term upside relative to the other firms. Reported short interest was effectively zero, suggesting short-covering is unlikely to be a major trading catalyst.
• Negative Sentiment: The principal concern is third-quarter revenue guidance of $368 million to $370 million, below the roughly $372.8 million consensus estimate and implying slower growth of 16% to 17%. The company also reaffirmed, rather than raised, its full-year revenue outlook. monday.com outlook article
• Negative Sentiment: Investor uncertainty is heightened by monday.com’s previously announced workforce reduction of approximately 20%, or 630 employees, as it restructures around AI and enterprise customers. Capital One downgraded the stock from Overweight to Equal Weight and set a $95 target.

Hedge Funds Weigh In On monday.com

A number of hedge funds have recently bought and sold shares of the company. NewEdge Advisors LLC boosted its position in monday.com by 2,120.0% during the first quarter. NewEdge Advisors LLC now owns 111 shares of the company’s stock valued at $27,000 after acquiring an additional 106 shares during the last quarter. Advisory Services Network LLC bought a new position in shares of monday.com in the 3rd quarter worth about $28,000. EverSource Wealth Advisors LLC raised its position in shares of monday.com by 498.6% in the 1st quarter. EverSource Wealth Advisors LLC now owns 425 shares of the company’s stock worth $29,000 after acquiring an additional 354 shares in the last quarter. Quarry LP bought a new position in shares of monday.com in the 4th quarter worth about $29,000. Finally, Huntington National Bank lifted its stake in shares of monday.com by 6,040.0% in the 4th quarter. Huntington National Bank now owns 307 shares of the company’s stock valued at $45,000 after purchasing an additional 302 shares during the period. Institutional investors own 73.70% of the company’s stock.

monday.com Stock Performance

The business has a 50 day moving average price of $80.53 and a 200-day moving average price of $79.06. The company has a market capitalization of $4.47 billion, a price-to-earnings ratio of 37.22, a P/E/G ratio of 4.44 and a beta of 1.24.

monday.com (NASDAQ:MNDY) last released its earnings results on Monday, August 10th. The company reported $1.48 EPS for the quarter, topping the consensus estimate of $1.11 by $0.37. The business had revenue of $364.62 million during the quarter, compared to analysts’ expectations of $355.55 million. monday.com had a return on equity of 8.10% and a net margin of 8.87%.The firm’s revenue was up 21.9% on a year-over-year basis. During the same quarter last year, the firm posted $1.09 earnings per share. As a group, equities analysts predict that monday.com Ltd. will post 1.59 EPS for the current fiscal year.

monday.com Company Profile

monday.com is a software-as-a-service (SaaS) company that provides a cloud-based Work Operating System (Work OS) designed to help teams plan, organize and track their work. The platform offers customizable workflows that support project management, task delegation, time tracking and collaboration across departments. monday.com’s visual interface enables users to create boards, automations and dashboards to centralize information and streamline processes without requiring extensive coding knowledge.

The company’s product portfolio includes monday Work OS, which can be adapted for use cases ranging from marketing campaign management and sales pipelines to software development sprints and human resources onboarding.