Here’s Why Endava plc (DAVA) Fell in Q1

The London Company, an investment management company, released “The London Company SMID Cap Strategy” first quarter 2024 investor letter. A copy of the letter can be downloaded here. US markets posted solid returns in Q1. The portfolio gained 9.4% (9.2% net) during the quarter compared to 6.9% returns for the Russell 2500 Index. Both stock selection and sector exposure led the portfolio to outperform in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.

The London Company SMID Cap Strategy featured stocks like Endava plc (NYSE:DAVA) in the first quarter 2024 investor letter. Headquartered in London, the United Kingdom, Endava plc (NYSE:DAVA) is a technology services provider for clients in the consumer products, healthcare, mobility, and retail verticals.  On May 3, 2024, Endava plc (NYSE:DAVA) stock closed at $30.90 per share. One-month return of Endava plc (NYSE:DAVA) was -9.44%, and its shares lost 40.74% of their value over the last 52 weeks. Endava plc (NYSE:DAVA) has a market capitalization of $1.785 billion.

The London Company SMID Cap Strategy stated the following regarding Endava plc (NYSE:DAVA) in its first quarter 2024 investor letter:

“Endava plc (NYSE:DAVA) – DAVA’s 4Q earnings were challenging and management reduced guidance due to client spend not materializing. We believe that can be attributed to high concentrations in the payments and financial services verticals, and those clients are being extra cautious with committing to new projects. However, the bigger issue to us was the announced acquisition of GalaxE, an offshore Indian outsourcer, which is a full pivot from their existing strategy and company identity.”

A tech expert in a suit presenting a new IT strategy in front of a corporate audience.

Endava plc (NYSE:DAVA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 10 hedge fund portfolios held Endava plc (NYSE:DAVA) at the end of the fourth quarter which was 11 in the previous quarter.

We previously discussed Endava plc (NYSE:DAVA) in another article, where we shared White Falcon Capital Management’s views on the company. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.