DAVA Should I Buy
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$
0.000
0.000(0.000%)
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Endava PLC (DAVA) is not a good buy for a beginner, long-term investor at this time. The technical indicators are bearish, the financial performance is significantly declining, and there are no strong positive catalysts to offset the negative sentiment. The options data suggests minimal bullish sentiment, and the stock lacks proprietary trading signals for a buy recommendation.
The technical indicators for DAVA are bearish. The MACD histogram is negative and expanding downward, the RSI is neutral but leaning towards oversold territory at 22.967, and moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support level of 5.003, with resistance levels at 6.29 and 6.688. The stock has a 60% chance of declining further in the next week (-2.47%).
Endava is involved in a significant project with Nexus Global Payments, working alongside Amazon Web Services to enhance cross-border payment systems. This partnership could be a long-term growth driver if executed successfully.
Gross margin has also declined by 15.27% YoY. Additionally, the stock price has shown consistent weakness, with a -4.75% regular market change and a -2.00% post-market change.
In Q1 2026, Endava reported a revenue decline of 8.65% YoY to $178.19M. Net income plummeted by 463.02% YoY to -$8.16M, and EPS dropped by 475.00% YoY to -$0.15. Gross margin also fell to 21.14%, down 15.27% YoY. These metrics indicate significant financial struggles.
No recent analyst rating or price target changes were provided. However, the lack of positive sentiment from analysts further weakens the stock's outlook.
