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

monday.com Ltd. (NASDAQ:MNDY) gapped down before the market opened on Monday after UBS Group lowered their price target on the stock from $95.00 to $90.00. The stock had previously closed at $87.93, but opened at $83.00. UBS Group currently has a neutral rating on the stock. monday.com shares last traded at $84.1490, with a volume of 935,773 shares changing hands.

MNDY has been the subject of several other reports. Loop Capital reduced their target price on monday.com from $100.00 to $90.00 and set a “hold” rating for the company in a report on Monday. Cantor Fitzgerald downgraded monday.com from an “overweight” rating to a “neutral” rating and lowered their price target for the company from $112.00 to $90.00 in a report on Monday, August 10th. Needham & Company LLC lowered shares of monday.com from a “buy” rating to a “hold” rating in a research report on Monday. Zacks Research cut shares of monday.com from a “strong-buy” rating to a “hold” rating in a research note on Thursday, October 15th. Finally, Citigroup reduced their price objective on shares of monday.com from $132.00 to $127.00 and set a “buy” rating for the company in a research note on Tuesday. Nine equities research analysts have rated the stock with a Buy rating and sixteen have issued a Hold rating to the company. Based on data from MarketBeat.com, monday.com presently has a consensus rating of “Hold” and an average target price of $103.09.

Insider Activity

In related news, Director Aviad Eyal sold 2,000 shares of the business’s stock in a transaction 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 transaction, the director owned 203,455 shares of the company’s stock, valued at approximately $20,353,638.20. The trade was a 0.97% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 22.30% of the company’s stock.

Key Stories Impacting monday.com

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

• Positive Sentiment: monday.com reported Q3 adjusted earnings of $2.14 per share, ahead of the roughly $1.41 consensus, while revenue of $377.5 million also topped estimates and grew 19.1% year over year. Cost reductions helped lift its non-GAAP operating margin to a record 24%. Q3 earnings beat estimates on cost cuts
• Positive Sentiment: AI features are generating revenue, with AI-related annual recurring revenue reaching $36 million, while the company continues to pursue enterprise expansion. Monday.com: 3 key takeaways for long-term investors
• Neutral Sentiment: Analysts cut targets across the board, though views remain mixed: Canaccord and Needham downgraded MNDY to Hold, while Loop Capital also lowered its target and maintained Hold. Other firms, including Citi and Morgan Stanley, retained Buy or Overweight ratings despite reductions. Canaccord downgrade Needham downgrade
• Negative Sentiment: Q4 revenue guidance of $380 million–$382 million fell short of analysts’ roughly $385.5 million estimate. Investors are also weighing slower revenue growth, longer sales cycles, weakness among small-business customers, and a reported decline in retention—concerns that cloud the 2027 outlook. Q3 call highlights AI shift and growth pressures
• Negative Sentiment: Options activity added a bearish signal: traders bought 14,663 put options on Nov. 9, about 550% above typical daily volume. Traders buy large volume of put options

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Fulton Bank N.A. lifted its stake in shares of monday.com by 5.1% in the second quarter. Fulton Bank N.A. now owns 3,339 shares of the company’s stock valued at $242,000 after buying an additional 162 shares during the period. EverSource Wealth Advisors LLC increased its stake in monday.com by 498.6% during the first quarter. EverSource Wealth Advisors LLC now owns 425 shares of the company’s stock valued at $29,000 after acquiring an additional 354 shares during the period. Global Retirement Partners LLC raised its holdings in monday.com by 600.0% in the 3rd quarter. Global Retirement Partners LLC now owns 896 shares of the company’s stock valued at $70,000 after acquiring an additional 768 shares in the last quarter. Signaturefd LLC raised its holdings in monday.com by 28.3% in the 3rd quarter. Signaturefd LLC now owns 4,469 shares of the company’s stock valued at $351,000 after acquiring an additional 987 shares in the last quarter. Finally, State of Wyoming lifted its position in shares of monday.com by 96.6% in the 1st quarter. State of Wyoming now owns 3,497 shares of the company’s stock worth $242,000 after acquiring an additional 1,718 shares during the period. Institutional investors own 73.70% of the company’s stock.

monday.com Stock Performance

The stock has a 50-day simple moving average of $89.81 and a 200 day simple moving average of $82.56. The company has a market cap of $3.91 billion, a P/E ratio of 26.34, a P/E/G ratio of 1.80 and a beta of 1.06.

monday.com (NASDAQ:MNDY) last released its quarterly earnings data on Monday, November 9th. The company reported $2.14 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.41 by $0.73. The business had revenue of $377.54 million for the quarter, compared to analysts’ expectations of $369.17 million. monday.com had a return on equity of 15.86% and a net margin of 10.05%. monday.com’s quarterly revenue was up 19.1% on a year-over-year basis. During the same period in the previous year, the business posted $1.16 earnings per share. Sell-side analysts anticipate that monday.com Ltd. will post 2.34 earnings per share for the current fiscal year.

About monday.com

monday.com Ltd. is a software company that provides a cloud-based platform for organizations to plan, manage and track work. Founded in 2012 as dapulse, the company adopted the monday.com name in 2017. Its products include monday work management, monday CRM, monday dev and monday service. The platform offers tools for project and workflow management, customer relationship management, software development and service operations, with features for collaboration, automation and reporting. Headquartered in Tel Aviv, Israel, monday.com serves customers across a range of industries and geographies.