Zacks Research Downgrades Endava (NYSE:DAVA) to Strong Sell

Endava (NYSE:DAVA) was downgraded by stock analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued to investors on Thursday,Zacks.com reports.

Several other equities research analysts have also commented on DAVA. Needham & Company LLC decreased their price objective on shares of Endava from $7.00 to $5.00 and set a “buy” rating for the company in a research note on Thursday. Guggenheim decreased their price objective on shares of Endava from $15.00 to $13.00 and set a “buy” rating for the company in a research note on Friday, February 13th. Weiss Ratings reiterated a “sell (d)” rating on shares of Endava in a research note on Tuesday, April 7th. TD Cowen restated a “buy” rating on shares of Endava in a research note on Friday. Finally, JPMorgan Chase & Co. restated an “underweight” rating and set a $5.00 price target (down from $9.00) on shares of Endava in a research note on Friday. Two research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Reduce” and an average price target of $7.14.

Endava Trading Down 0.1%

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

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

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. EverSource Wealth Advisors LLC raised its position in shares of Endava by 733.6% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,909 shares of the company’s stock valued at $29,000 after buying an additional 1,680 shares in the last quarter. Advisory Services Network LLC purchased a new stake in shares of Endava during the 3rd quarter valued at $28,000. Quadrant Capital Group LLC raised its position in shares of Endava by 901.8% during the 4th quarter. Quadrant Capital Group LLC now owns 6,101 shares of the company’s stock valued at $39,000 after buying an additional 5,492 shares in the last quarter. Perennial Advisors LLC purchased a new stake in shares of Endava during the 4th quarter valued at $63,000. Finally, Vident Advisory LLC purchased a new stake in shares of Endava during the 2nd quarter valued at $160,000. 62.23% of the stock is owned by institutional investors.

Endava News Roundup

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.