Should You Hold Endava plc (DAVA) for the Long-Term?

Baron Funds, an investment management company, released its “Baron Opportunity Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund outperformed the broader market and increased by 17.96% (Institutional Shares) compared to a 13.85% return for the Russell 3000 Growth Index and a 7.50% return for the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Baron Opportunity Fund highlighted stocks like Endava plc (NYSE:DAVA) in the first quarter 2023 investor letter. Headquartered in London, the United Kingdom, Endava plc (NYSE:DAVA) is a technology services provider. On May 9, 2023, Endava plc (NYSE:DAVA) stock closed at $52.57 per share. One-month return of Endava plc (NYSE:DAVA) was -14.80%, and its shares lost 43.96% of their value over the last 52 weeks. Endava plc (NYSE:DAVA) has a market capitalization of $2.992 billion.

Baron Opportunity Fund made the following comment about Endava plc (NYSE:DAVA) in its Q1 2023 investor letter:

Endava plc (NYSE:DAVA) provides outsourced software development for business customers. Shares fell after the company reduced financial guidance to reflect slower bookings as macroeconomic uncertainty weighed on client decision making in December. The company reported solid quarterly results, with 30% revenue growth and 26% earnings growth. Management noted that bookings have improved in the first couple of months of 2023, and they expect annualized revenue growth to quickly return to more than 20%. We remain investors because we believe Endava will continue gaining share in a large global market for IT services.”

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Endava plc (NYSE:DAVA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held Endava plc (NYSE:DAVA) at the end of the fourth quarter which was 13 in the previous quarter.

We discussed Endava plc (NYSE:DAVA) in another article and shared Baron FinTech Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2023 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.