Endava(DAVA) Shares Plunge 26.95% on Downgrade, Record Low

Endava(DAVA) shares plummeted 26.95% today, marking the second consecutive day of decline, with a total drop of 27.26% over the past two days. The share price hit a record low, experiencing an intraday decline of 32.27%.

The strategy of buying DAVA shares after they reached a recent low and holding for 1 week yielded moderate returns over the past 5 years, with a 7.46% annualized gain. This result indicates that this strategy has the potential to provide reasonable returns, but it is important to consider other factors such as market conditions and the company's fundamentals.

Endava's stock price has been under pressure due to several recent developments. TD Cowen downgraded the company's rating from Buy to Hold and reduced its price target from $27 to $17. This downgrade came despite Endava reporting revenue growth of 11.7% for the third quarter of 2025. However, the market reaction was negative, with shares falling 29.99% to $14.99 following the earnings announcement. Investors expressed concerns as the latest quarterly results did not provide clear signs of relief from ongoing challenges, leading to an 8% premarket decline.

Endava's stock has faced significant challenges over the past year, with a 37.43% decrease over the last three months and a 28.82% decline over the last 12 months. Despite eight positive EPS revisions, the market sentiment remains bearish. The company's inability to address investor concerns and provide a clear path forward has contributed to the continued decline in its stock price.