Endava stock: buy or sell?

DAVA stock price: $55.50 0.13% At close on February 21st, 2020

Updated on:
February 21st, 2020

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Endava remained stable 0.13% to $55.50 after yesterday all time highs. On Feb/13 DAVA boosted an extraordinary 12.13%. Friday was the fourth climbing day in a row, marking 3.97%.

Should I buy Endava stock?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Following a trading strategy helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, 2 buy setups work for Endava stock now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is Endava stock a buy?

Banks and financial institutions publish stock ratings everyday. Unfortunately, we couldn't detect any rating for DAVA stock for the last 30 days.

Endava stock analysis

Daily outlook

After yesterday all time highs, Endava remained steady to $55.50.

After yesterday all time highs, Endava remained steady to $55.50. On November DAVA price bounced up over the SMA of 100 days demonstrating to be a significant support for this stock. Yesterday, DAVA hit a new all time high, pushing higher than on Feb/13 tops. Check different trading setups that use ATHs as triggers. Since last October when SMA50d and SMA100d crossed up, DAVA price gained $14.63 per share (35.80%).

DAVA stock chart (daily)

Weekly outlook

Endava topped new all time highs again this week, setting highs to $55.75. Shares ended at $55.50 and jumped 4.09% during the week. Last week DAVA skyrocketed a dazzling 10.43% in just one week. This week was the third green week in a row.

DAVA shows a strong mid-term uptrend with several rising tops and rising bottoms. Since its last bottom by mid January, DAVA climbed unceasignly breaking out to new all time highs. Late October 2019, SMA10w and SMA20w crossed up triggering a rise of 40.15%. By mid October 2019 DAVA price bounced up over the SMA of 20 weeks that acted as support stopping new slides.

DAVA stock chart (weekly)

Endava stock price history

Endava IPO was on July 27th, 2018 at $25.00 per share1. Since then, DAVA stock grew a 122.00%, with a yearly average of 122.00%. If you had invested right after DAVA's IPO a $1,000 in Endava stock in 2018, it would worth $1,220.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Endava stock historical price chart

DAVA stock reached all-time highs yesterday with a price of $55.75.

Endava stock price target

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. You should not follow the analysts' DAVA stock price predictions in the hope that they will be met as they may be wrong and not met. For the last month we have not detected any price target for Endava stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

On February, Endava reported its latest financial data, posting an outstanding climb for the Earnings per Share (EPS) ratio. Experts were expecting $0.17 per share, but Endava posted $0.26.
DAVA earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
0000-Q2-n/an/an/a
2017-Q1-n/an/an/a
2017-Q2-n/an/an/a
2017-Q3-n/an/an/a
2018-Q1-n/an/an/a
2018-Q22018-10-11n/a0.2n/a
2018-Q32018-11-290.140.2257.1%
2018-Q42019-02-280.170.2652.9%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

In 2018, Endava annual turnover skyrocketed a super good 36.55% to $217.61 M USD from $159.37 marked in 2017. On the other hand, its income margin (compared to sales) depreciated to 8.72%, that is $18.98 million.

To have an updated view of the financial situation of Endava, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2018-Q4 that can be compared to 2018 fiscal year results. Annual Endava TTM sales up to December 2018 were $258.32 and earnings were $18.58 million dollars. If we compare this TTM figures with the last reported annuality, we can esteem Endava business evolution since June 2018: Annual turnover up to December, compared to lastest yearly report, boosted an astounding 18.71%. Regarding profit margin, Endava slightly fell -1.53% to 8.72%

DAVA annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2016$115 M-$17 M14.5%-
2017$159 M38.06%$17 M10.6%0.75%
2018$218 M36.55%$19 M8.7%12.73%
TTM $258 M18.71%$19 M7.2%-2.07%

Quarterly financial results

Endava reported $71.83 million in sales for 2018-Q4, a 8.16% improvement compared to previous quarter. Reported quarter earnings marked $7.42 million with a profit margin of 10.33%. Profit margin jumped a 7.24% compared to previous quarter when profit margin was 3.08%. When comparing turnover to same quarter last year, Endava sales marked and a . Looking back to recent quarterly results, Endava posted 3 negative quarters in a row.
DAVA quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$146 M-$16 M10.8%-
2017-Q2$56 M-61.59%$6 M9.9%-64.58%
2017-Q3$64 M13.54%$7 M10.7%22.11%
2018-Q1$59 M-7.97%$4 M7.2%-38.07%
2018-Q2$61 M4.91%$5 M8.0%16.09%
2018-Q3$66 M8.04%$2 M3.1%-58.19%
2018-Q4$72 M8.16%$7 M10.3%262.16%

Endava ownership

When you are planning to buy shares of a stock, it's worth to check its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Endava, 2.65% of all outstanding shares are owned by its staff.

Bearish positions for DAVA stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Endava:

DAVA
Market cap$3.1 B
Total shares55.0 M
Float shares15.2 M
  - Institutional holdings (%)88.7%
  - Insider holdings (%)2.6%
Shares in short selling0.0%

Endava summary

Friday, February 21st, 2020
Open$55.23
Close$55.50
Day range$54.49 - $55.71
Previous close$55.43
Session gain0.13%
Average true range$2.18
50d mov avg$47.80
100d mov avg$44.79
200d mov avg$41.19
Daily pattern
Weekly pattern lb03c

Endava performance

To measure stock performance is always good to benchmark with competitors or related stocks. In the following table, we compare Endava performance to :
Stock3m6m12m
DAVAEndava20.73%51.35%129.34%

Endava competitors

Unfortunately, we could not find any public company that could be defined as Endava competitor. This doesn't mean Endava does not have any competitor in the market, it's just we could not detected it.