EPAM Stock Is Down 15% This Past Year — But This Fund Is Betting $146 Million on a Turnaround
Key Points
New York City-based Senvest Management added 524,798 shares of EPAM in the third quarter.
The move helped boost the overall position value by $67.6 million.
Senvest reported holding 968,404 EPAM shares valued at $146 million as of September 30, ranking as the fund's third-largest holding.
New York City-based Senvest Management significantly increased its stake in EPAM Systems during the third quarter, adding 524,798 shares and seeing the overall position value increase by approximately $67.6 million.
What Happened
Senvest Management reported a substantial increase in its holdings of EPAM Systems (NYSE:EPAM), according to a Securities and Exchange Commission (SEC) filing published November 14. The fund acquired an additional 524,798 shares during the third quarter, bringing its total to 968,404 shares with a quarter-end value of $146 million. The position now makes up 4.7% of Senvest’s U.S. equity AUM.
What Else to Know
Top holdings after the filing:
- NASDAQ: WIX: $442.1 million (14.2% of AUM)
- NASDAQ: TSEM: $405 million (13% of AUM)
- NYSE: EPAM: $146 million (4.7% of AUM)
- NYSE: PATH: $145.3 million (4.7% of AUM)
- NASDAQ: ILMN: $134 million (4.3% of AUM)
As of Tuesday, shares of EPAM Systems were priced at $210.83, down 15% over the past year and well underperforming the S&P 500, which is up 13% in the same period.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $5.3 billion |
| Net income (TTM) | $371.6 million |
| Market capitalization | $11.7 billion |
| Price (as of Tuesday) | $210.83 |
Company Snapshot
- EPAM Systems provides digital platform engineering, software development, infrastructure management, and consulting services across various industries.
- The company serves global customers in financial services, travel and consumer, software and hi-tech, media, and healthcare sectors.
- Employs over 61,000 people worldwide, supporting large-scale digital transformation projects for enterprise clients.
EPAM Systems is a leading global provider of digital engineering and software development services focused on delivering complex technology solutions at scale. The company leverages a broad talent base and deep technical expertise to help clients modernize platforms, integrate systems, and drive digital transformation initiatives. Its diversified client base and strong presence in high-growth industries underpin its competitive positioning in the technology services market.
Foolish Take
Senvest’s bolstered conviction in EPAM Systems highlights a broader question: whether the recent selloff has overly discounted a business still delivering double-digit revenue growth and expanding its role in AI-driven digital transformation. Despite a multiyear downturn, EPAM’s fundamentals show a company stabilizing — and in some areas, accelerating — its operational momentum.
EPAM’s third-quarter results underscore that resilience. Revenue rose 19.4% year over year to $1.4 billion as demand strengthened across financial services, retail, and software. The company also continued to lean into shareholder returns, repurchasing $82.1 million in stock and authorizing an additional $1 billion buyback program. GAAP EPS fell to $1.91 as margin pressure persisted, but non-GAAP operating performance remained stable. Full-year guidance calls for 15% revenue growth at the midpoint, along with steady non-GAAP profitability.
Relative to Senvest’s larger positions in Wix and Tower Semiconductor, EPAM stands out as a recovery bet backed by improving fundamentals rather than a pure growth swing. For investors, the key takeaway is that EPAM is executing well in a challenging market while expanding its AI-native capabilities — offering potential upside if sentiment around IT services continues to normalize.
Glossary
13F reportable assets under management (AUM): The total value of U.S. securities a fund must disclose in quarterly SEC Form 13F filings.
Position: The amount of a particular security or asset held by an investor or fund.
Quarter-end: The last day of a fiscal quarter, used as a reference point for financial reporting.
Holding: An investment owned by an individual or institution, such as stocks or bonds.
TTM: The 12-month period ending with the most recent quarterly report.
Digital platform engineering: Designing and building complex software systems that support digital business operations and services.
Infrastructure management: The administration and maintenance of IT systems, networks, and services within an organization.
Consulting services: Professional advice provided to organizations to improve business performance, processes, or technology.
Client base: The group of customers or organizations that regularly use a company's products or services.
Competitive positioning: How a company differentiates itself and stands out among competitors in its industry.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends EPAM Systems, UiPath, and Wix.com. The Motley Fool recommends Illumina. The Motley Fool has a disclosure policy.