monday.com (NASDAQ:MNDY) Stock Jumps 7.9% – Still a Buy?

Shares of monday.com Ltd. (NASDAQ:MNDY) shot up 7.9% during trading on Thursday. The company traded as high as $106.25 and last traded at $108.0230. 309,339 shares changed hands during trading, a decline of 83% from the average daily volume of 1,784,513 shares. The stock had previously closed at $100.15.

Key Stories Impacting monday.com

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

• Positive Sentiment: A Seeking Alpha analysis rated monday.com a Buy and estimated intrinsic value at $113.50, citing potential margin expansion as operating expenses decline relative to revenue. The article said AI credits could increase revenue per customer, although execution remains important. monday.com: Operating Leverage Creates Upside, But AI Margins Remain The Key Risk
• Positive Sentiment: Other recent commentary described MNDY as potentially undervalued based on discounted future cash flow and estimated the shares could be modestly undervalued following the Harmony launch. The company’s latest reported quarter also showed revenue growth of 21.9% year over year and earnings well above consensus estimates. monday.com Stock Looks Cheap Based On Future Cash Flow monday.com Could Be 2% Undervalued After Harmony Launch
• Neutral Sentiment: monday.com was featured in Zacks’ growth-stock coverage and became one of the most heavily searched stocks on Zacks.com. The visibility may support trading interest, but search activity alone does not change the company’s fundamentals or valuation. Investors Heavily Search monday.com
• Negative Sentiment: Director Eyal Aviad sold 2,000 shares for approximately $200,080. The transaction represented less than 1% of his holdings and was executed under a pre-arranged Rule 10b5-1 plan, reducing its significance but still creating a modest insider-selling signal. In addition, Barclays and Zacks Research recently lowered their ratings, while the broader analyst consensus remains Hold with a $111.70 target. monday.com Director Sells 2,000 Shares

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on MNDY shares. Zacks Research cut shares of monday.com from a “strong-buy” rating to a “hold” rating in a research note on Thursday, October 15th. UBS Group upped their price objective on monday.com from $85.00 to $95.00 and gave the stock a “neutral” rating in a research note on Tuesday, August 11th. BTIG Research reaffirmed a “buy” rating and issued a $105.00 target price on shares of monday.com in a report on Monday, August 10th. JPMorgan Chase & Co. downgraded monday.com from an “overweight” rating to a “neutral” rating and lowered their target price for the company from $90.00 to $87.00 in a research report on Tuesday, September 29th. Finally, Weiss Ratings upgraded monday.com from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Thursday, October 15th. Twelve investment analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $111.70.

monday.com Trading Down 0.3%

The stock has a 50 day simple moving average of $89.84 and a 200-day simple moving average of $81.56. The firm has a market cap of $5.45 billion, a PE ratio of 45.33, a price-to-earnings-growth ratio of 2.41 and a beta of 1.14.

monday.com (NASDAQ:MNDY) last announced its quarterly earnings data on Monday, August 10th. The company reported $1.48 EPS for the quarter, beating the consensus estimate of $1.11 by $0.37. monday.com had a return on equity of 9.09% and a net margin of 8.87%. The business had revenue of $364.62 million for the quarter, compared to the consensus estimate of $355.55 million. During the same period in the previous year, the business earned $1.09 earnings per share. The business’s revenue was up 21.9% on a year-over-year basis. On average, equities research analysts expect that monday.com Ltd. will post 2.34 EPS for the current year.

Insiders Place Their Bets

In other monday.com news, Director Aviad Eyal sold 2,000 shares of the stock in a transaction that occurred on Tuesday, October 20th. The shares were sold at an average price of $100.04, for a total transaction of $200,080.00. Following the completion of the sale, the director directly owned 203,455 shares of the company’s stock, valued at $20,353,638.20. This trade represents a 0.97% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 22.30% of the stock is owned by insiders.

Hedge Funds Weigh In On monday.com

Several hedge funds have recently modified their holdings of the stock. Signaturefd LLC boosted its stake in monday.com by 28.3% during the third quarter. Signaturefd LLC now owns 4,469 shares of the company’s stock valued at $351,000 after buying an additional 987 shares during the last quarter. Quadrant Capital Group LLC purchased a new position in monday.com during the 3rd quarter valued at approximately $235,000. Sequoia Financial Advisors LLC increased its stake in monday.com by 60.2% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 6,312 shares of the company’s stock worth $457,000 after acquiring an additional 2,373 shares during the last quarter. Engineers Gate Manager LP increased its stake in monday.com by 29.5% in the 2nd quarter. Engineers Gate Manager LP now owns 38,981 shares of the company’s stock worth $2,822,000 after acquiring an additional 8,891 shares during the last quarter. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in monday.com in the 2nd quarter worth approximately $5,098,000. Hedge funds and other institutional investors own 73.70% of the company’s stock.

monday.com Company Profile

monday.com Ltd. is a software company that provides a cloud-based Work Operating System (Work OS) designed to help organizations manage projects, workflows and business operations. Its platform uses configurable boards, dashboards, automations, integrations and collaboration tools, enabling teams to organize work and build workflows without extensive software development.

The company offers products tailored to several business functions, including monday work management for project and task coordination, monday CRM for sales and customer relationship processes, monday dev for software development teams, and monday service for managing customer support and service operations.