Engineering IT services company Grid Dynamics jumps on inclusion in S&P SmallCap 600

Starting in January, Grid Dynamics will join the S&P 600 index. / Photo: Woodluck.org.ua

Shares of Grid Dynamics Holdings, a provider of technology consulting, platform and product engineering, and analytics services, surged nearly 10% in after-hours trading on Thursday, December 26. This came after the announcement that the company will join the S&P SmallCap 600 index on January 2.

Details

Grid Dynamics Holdings stock jumped nearly 10% during after-hours trading on Thursday before extending the gains into premarket trading today, Friday, December 27. During the regular session on Thursday, shares closed at their highest level since September 2022, at $21.07 per share.

After the market closed, index provider S&P Global announced that Grid Dynamics would join the S&P SmallCap 600 on January 2. The company will replace outdoor gear manufacturer Revelyst, which is being taken private by investment funds.

About Grid Dynamics

Grid Dynamics specializes in digital engineering and IT services. Its AI-based solutions help companies to enhance customer service and to manage risks, pricing, and promotions, while its cloud platform modernizes legacy applications. Grid Dynamics counts Google, Visa, and American Eagle as clients.

In the third quarter of 2024, the company reported a 12.9% year-over-year increase in revenue to $87.4 million. This also beat its guidance of $84.0-86.0 million.

According to MarketWatch, five analysts rate Grid Dynamics as a “buy.” Their average target price is $21 per share, though the stock is now trading above that level.