During the last three months, 6 analysts shared their evaluations of Thoughtworks Holding (NASDAQ:TWKS), revealing diverse outlooks from bullish to bearish.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 2 | 3 | 0 | 1 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 1 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 2 | 2 | 0 | 0 |
Insights from analysts' 12-month price targets are revealed, presenting an average target of $3.83, a high estimate of $6.00, and a low estimate of $2.50. Highlighting a 1.79% decrease, the current average has fallen from the previous average price target of $3.90.
Deciphering Analyst Ratings: An In-Depth Analysis
The standing of Thoughtworks Holding among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Ashwin Shirvaikar | Citigroup | Lowers | Neutral | $2.75 | $3.25 |
| James Schneider | Goldman Sachs | Announces | Sell | $2.50 | - |
| Moshe Katri | Wedbush | Maintains | Outperform | $6.00 | $6.00 |
| Ashwin Shirvaikar | Citigroup | Raises | Neutral | $3.25 | $2.50 |
| David Koning | Baird | Raises | Outperform | $6.00 | $5.00 |
| Ashwin Shirvaikar | Citigroup | Lowers | Neutral | $2.50 | $2.75 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Thoughtworks Holding. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Thoughtworks Holding compared to the broader market.
- Price Targets: Delving into movements, analysts provide estimates for the future value of Thoughtworks Holding's stock. This analysis reveals shifts in analysts' expectations over time.
To gain a panoramic view of Thoughtworks Holding's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
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Unveiling the Story Behind Thoughtworks Holding
Thoughtworks Holding Inc is a global technology consultancy that integrates strategy, design, and software engineering to enable enterprises and technology disruptors across the globe to thrive as modern digital businesses. Its global service lines include Enterprise Modernization, Platforms and Cloud; Customer Experience, Product and Design; Data and Artificial Intelligence (AI), and Digital Transformation and Operations. Geographically, it derives a majority of its revenue from North America and also has a presence in APAC; Europe, and LATAM.
Unraveling the Financial Story of Thoughtworks Holding
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
Revenue Challenges: Thoughtworks Holding's revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -19.04%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.
Net Margin: Thoughtworks Holding's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of -12.42%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Thoughtworks Holding's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -4.05% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -2.38%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: With a below-average debt-to-equity ratio of 0.44, Thoughtworks Holding adopts a prudent financial strategy, indicating a balanced approach to debt management.
Understanding the Relevance of Analyst Ratings
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
This article was generated by Benzinga's automated content engine and reviewed by an editor.