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

monday.com Ltd. (NASDAQ:MNDY)’s share price 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.

Other research analysts have also recently issued reports about the company. BTIG Research reiterated a “buy” rating and issued a $105.00 price target on shares of monday.com in a research note on Monday. Canaccord Genuity Group reduced their price objective on monday.com from $140.00 to $115.00 and set a “buy” rating on the stock in a research report on Tuesday, May 12th. Capital One Financial cut monday.com from an “overweight” rating to an “equal weight” rating and set a $95.00 target price for the company. in a report on Monday. Wells Fargo & Company dropped their target price on monday.com from $130.00 to $120.00 and set an “overweight” rating for the company in a research report on Tuesday. Finally, Oppenheimer set a $115.00 price target on monday.com in a research note on Monday, May 11th. Fifteen equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $124.25.

monday.com News Roundup

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.

Institutional Trading of monday.com

A number of institutional investors and hedge funds have recently bought and sold shares of MNDY. NewEdge Advisors LLC lifted its holdings in monday.com by 2,120.0% during the 1st quarter. NewEdge Advisors LLC now owns 111 shares of the company’s stock worth $27,000 after buying an additional 106 shares during the period. American Century Companies Inc. increased its stake in shares of monday.com by 75.3% in the second quarter. American Century Companies Inc. now owns 4,192 shares of the company’s stock valued at $1,318,000 after buying an additional 1,801 shares during the period. EverSource Wealth Advisors LLC raised its position in shares of monday.com by 76.5% during the second quarter. EverSource Wealth Advisors LLC now owns 150 shares of the company’s stock worth $47,000 after acquiring an additional 65 shares during the last quarter. Cerity Partners LLC lifted its stake in shares of monday.com by 28.8% in the second quarter. Cerity Partners LLC now owns 2,596 shares of the company’s stock worth $816,000 after acquiring an additional 580 shares during the period. Finally, WINTON GROUP Ltd bought a new stake in monday.com in the second quarter valued at approximately $398,000. 73.70% of the stock is currently owned by institutional investors and hedge funds.

monday.com Price Performance

The firm has a market capitalization of $4.47 billion, a P/E ratio of 37.22, a PEG ratio of 4.44 and a beta of 1.24. The company has a fifty day moving average of $80.53 and a 200 day moving average of $79.06.

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