Are Smart Investors Making the Right Decision? monday.com Ltd. (MNDY)

monday.com Ltd. (NASDAQ: MNDY) stock jumped 0.91% on Thursday to $165.79 against a previous-day closing price of $164.29. With 1.82 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.82 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $171.86 whereas the lowest price it dropped to was $165.21. The 52-week range on MNDY shows that it touched its highest point at $171.89 and its lowest point at $73.58 during that stretch. It currently has a 1-year price target of $187.31.

Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of MNDY was up-trending over the past week, with a rise of 10.53%, but this was up by 34.04% over a month. Three-month performance surged to 7.17% while six-month performance rose 73.51%. The stock gained 66.21% in the past year, while it has gained 35.89% so far this year. A look at the trailing 12-month EPS for MNDY yields -1.85 with Next year EPS estimates of 0.93. For the next quarter, that number is 0.17. This implies an EPS growth rate of 6.30% for this year and 46.85% for next year.

Float and Shares Shorts:

At present, 47.91 million MNDY shares are outstanding with a float of 30.58 million shares on hand for trading. On May 14, 2023, short shares totaled 3.58 million, which was 7.51% higher than short shares on Apr 13, 2023. In addition to Mr. Eran Zinman as the firm’s Co-Founder, Co-CEO, & Director, Mr. Roy Mann serves as its Co-Founder, Co-CEO & Director.

Institutional Ownership:

Through their ownership of 72.54% of MNDY’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 19.84% of MNDY, in contrast to 17.76% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in MNDY with 5.62% of the stake, T. Rowe Price Associates, Inc. holds 2,684,101 shares worth 2,684,101. A second-largest stockholder of MNDY, Franklin Advisers, Inc., holds 1,990,297 shares, controlling over 4.17% of the firm’s shares. AllianceBernstein LP is the third largest shareholder in MNDY, holding 939,004 shares or 1.97% stake. With a 4.32% stake in MNDY, the T Rowe Price New Horizons Fund is the largest stakeholder. A total of 2,063,433 shares are owned by the mutual fund manager. The Franklin DynaTech Fund, which owns about 1.57% of MNDY stock, is the second-largest Mutual Fund holder. It holds 750,000 shares valued at 91.44 million. Allianz Global Investors Fund – A holds 1.39% of the stake in MNDY, owning 663,525 shares worth 80.9 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, MNDY reported revenue of $123.72M and operating income of -$46.18M. The EBITDA in the recently reported quarter was -$44.78M and diluted EPS was -$1.01.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MNDY since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With MNDY analysts setting a high price target of $240.00 and a low target of $150.00, the average target price over the next 12 months is $184.19. Based on these targets, MNDY could surge 44.76% to reach the target high and fall by -9.52% to reach the target low. Reaching the average price target will result in a growth of 11.1% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.