Exploring Endava plc (DAVA) Investor Profile: Who’s Buying and Why?

You are looking at Endava plc (DAVA), a stock that has seen its share price volatility test the conviction of even the most seasoned investors over the past year, so the question is simple: who is still buying and why are they sticking around? This isn't a retail-driven story; institutional investors hold a dominant position, with institutional ownership recently reported as high as 80.95% of the float. That kind of concentration means the stock's direction is defintely tied to the big money-firms like Capital International Investors and Kayne Anderson Rudnick Investment Management LLC. They are clearly looking past the short-term market choppiness, which saw the company's full fiscal year 2025 revenue climb to £772.3 million, a solid 4.3% increase year-over-year, but with profit before tax at a more modest £24.1 million. Plus, management is showing confidence by repurchasing American Depositary Shares totaling $115.9 million as of October 2025, a clear signal that they see the stock as undervalued. Are these financial titans betting on the long-term shift to AI-native digital transformation, or is there a near-term catalyst you are missing in the current client spending slowdown? Dive in to see the full breakdown of who is making the biggest moves and what their portfolio actions tell us about Endava's future.

Who Invests in Endava plc (DAVA) and Why?

You're looking at Endava plc (DAVA) and seeing a technology services firm navigating a volatile market, but the investor base tells a story of long-term conviction, not panic. The direct takeaway is that professional money-institutional investors and hedge funds-holds the majority stake, drawn by the company's deep specialization in digital transformation and its aggressive move to become an AI-native service provider, especially after the stock's significant price correction.

As of late 2025, institutional investors own a dominant 62.23% of the stock, reflecting a belief in the company's core business despite near-term headwinds. This group includes large asset managers, pension funds, and hedge funds (investment funds using varied strategies, including leverage, to generate returns). Retail investors-individual investors like you and me-hold the remaining portion, estimated around 40.82% as of April 2025. Plus, a high insider ownership of 29% as of November 2025 is a strong signal that management's interests are aligned with shareholders.

Here's the breakdown of the major investor types:

• Institutional Investors: The largest block, including firms like Kayne Anderson Rudnick Investment Management Llc, Invesco Ltd., and Alberta Investment Management Corp. They drive the stock's valuation sensitivity.
• Hedge Funds: These are embedded within the institutional block. Their activity, such as the significant stake increases by firms like Ruffer LLP and Fourth Sail Capital LP in early 2025, often signals a belief that the stock is trading at a compelling discount.
• Retail Investors: Individuals attracted by the growth narrative of a digital transformation company, often acting on analyst recommendations or a long-term belief in the technology sector.

Investment Motivations: Growth, AI, and Value

The core attraction to Endava plc isn't a dividend-the company doesn't pay one-it's a clear-cut growth story centered on technology and a recent valuation play. Despite a cautious near-term outlook due to clients recalibrating spending, the full-year signed value for FY2025 hit a record high.

The key factors driving investment decisions are:

• Digital Transformation and AI: Endava plc is positioned as a next-generation technology service provider, with over half of its workforce using Artificial Intelligence (AI) in projects by the end of FY2025. This AI-native approach is seen as crucial for future revenue growth in the evolving IT services sector.
• Financial Health and Capital Allocation: Investors value the company's strong balance sheet and its commitment to shareholder value, evidenced by the announcement of its first-ever share buyback program of $100 million in Q2 FY2025. For the full fiscal year 2025, the company reported revenue of £772.3 million and Adjusted Free Cash Flow of £48.7 million.
• Value Proposition: Following a steep year-over-year share price decline of over 65% between November 2024 and November 2025, many institutional investors view the stock as trading at a trough multiple. This presents a classic value investing opportunity for those betting on a cyclical recovery.

The AI focus is defintely the long-term hook.

Investment Strategies: Long-Term Conviction in a Trough

The prevailing strategy among major shareholders is one of patient, long-term accumulation, often characteristic of value investing (buying stocks believed to be trading for less than their intrinsic value). You see this in the actions of large institutions increasing their stakes throughout 2025.

For example, Alberta Investment Management Corp boosted its position by 35.6% in the second quarter of 2025, acquiring an additional 338,334 shares. Similarly, Mitsubishi UFJ Trust & Banking Corp raised its holdings by 17.3% in Q2 2025. This isn't short-term trading; it's a strategic move to build a position at what they perceive as a low point in the market cycle.

Here's the quick math on the 2025 fiscal year performance that underpins this strategy:

What this estimate hides is the market's reaction to the slowing growth rate and drop in free cash flow, which is exactly why the stock is cheap. The long-term holders are betting that the revenue growth, even at a slower rate, combined with the AI-native shift, will eventually re-accelerate the Adjusted Diluted EPS and cash flow, justifying the current low valuation. Short-term trading strategies exist, of course, capitalizing on the volatility, but the overall institutional footprint points to a long-term holding strategy focused on a turnaround. Breaking Down Endava plc (DAVA) Financial Health: Key Insights for Investors

Next Step: Review the recent Q1 FY2026 earnings call transcript to gauge management's confidence in the full-year 2026 outlook of Adjusted Diluted EPS between £0.80 and £0.88, which will be the next trigger for institutional buying or selling.

Institutional Ownership and Major Shareholders of Endava plc (DAVA)

If you're looking at Endava plc (DAVA), you need to know who the big money is-the institutional investors. These are the mutual funds, pension funds, and asset managers that hold the majority of the stock, and their actions defintely move the needle. As of late 2025, institutional investors own the lion's share of the company, holding approximately 60% of the outstanding stock.

This high concentration means Endava's stock price is highly sensitive to their trading decisions. When these giants buy or sell, the market notices, so understanding their positions is crucial for any investor. In fact, the top seven shareholders alone control about 51% of the business.

Top Institutional Investors and Their Stakes

The largest institutional holders of Endava plc are a mix of dedicated small-cap managers and major global investment firms. Their presence lends a certain credibility, but it also means you're competing with sophisticated players. Here's a snapshot of the largest positions based on recent filings, mostly as of the end of Q3 2025 (September 30, 2025):

Kayne Anderson Rudnick Investment Management LLC is the clear anchor investor, holding over 6.3 million shares. This kind of committed stake suggests a long-term belief in the company's core business model, which you can read more about in their Mission Statement, Vision, & Core Values of Endava plc (DAVA).

Recent Shifts: Who's Buying and Who's Selling?

The recent ownership changes show a split in sentiment, which is typical for a company navigating a challenging market. Some institutions are clearly taking profits or cutting losses, while others see a buying opportunity, especially after the stock's significant decline-a one-year loss of about 64%.

• Significant Selling: Invesco Ltd., a major holder, has been a notable seller, reducing its stake by a massive 2,298,086 shares in the recent quarter, a cut of over 62%. Kayne Anderson Rudnick also trimmed its position by over 550,000 shares.
• Aggressive Buying: On the flip side, some firms are doubling down. UBS Group AG increased its holdings by over 128% to 756,082 shares as of Q3 2025. Prescott Group Capital Management L.L.C. also showed strong conviction, increasing its position by 100.3% to 1,216,354 shares in early November 2025.

Here's the quick math: when a firm like UBS increases a position by over 128%, they aren't just rebalancing; they are making a high-conviction bet on a turnaround or deep value. This is a key action to watch.

Impact on Stock Price and Corporate Strategy

Institutional investors are often called 'smart money,' and their sheer size gives them significant leverage. For Endava plc, which saw its institutional holdings value drop by 12% in one recent week, their collective sentiment is a direct driver of the stock price.

If the stock weakness continues, the risk is that more institutions will feel compelled to sell, which creates a downward spiral for the share price. Since they own more than half the stock, the board and management must pay close attention to their preferences. For instance, the company's Q3 2025 adjusted diluted earnings per share came in at £0.34, beating guidance, but the stock's overall performance suggests the market (and these institutions) are more focused on the full-year revenue guidance of £771.5 million to £773.5 million and the broader economic headwinds impacting IT services.

Their influence extends beyond trading; they can shape strategy. If a large block of institutional investors, especially those with an activist bent, decides the company isn't moving fast enough on cost control or a strategic pivot (like leaning into the AI transformation initiatives Endava is pursuing), they can pressure management. Your action item is to track the next round of 13F filings-the selling trend from the largest holders is the near-term risk you need to monitor.

Key Investors and Their Impact on Endava plc (DAVA)

The investor profile for Endava plc (DAVA) is dominated by institutional money, which holds a significant stake-around 60% to over 80% of the company's shares. This means the stock price is highly sensitive to their collective trading actions, but you also have a powerful insider presence, with CEO John Cotterell holding a substantial 16% of shares outstanding.

The largest institutional holders are typically long-term asset managers and small-cap specialists, suggesting a belief in Endava plc's digital engineering and modernization story, despite the near-term headwinds from AI-driven cost deflation. Firms like Kayne Anderson Rudnick Investment Management LLC and T. Rowe Price Investment Management Inc. often target companies they see as having strong growth potential in niche markets, even if that growth is currently stalled. Honestly, their continued large positions signal a deep-conviction, patient capital base.

As of the Q3 2025 filings, the top institutional holders reflect this commitment, though some portfolio adjustments have been made.

Recent moves show a mixed picture, which is defintely common when a stock has faced a sharp decline, as Endava plc has with a 65.70% drop between November 2024 and November 2025. On the buying side, Prescott Group Capital Management, L.L.C. made a significant move, adding 609,215 shares in Q3 2025. Also, the Alberta Investment Management Corp (AIMCo) was noted for increasing its stake by 35.6% in Q2 2025, purchasing 338,334 shares, though their later filing shows a slight reduction. But, you also see large sellers like Invesco Ltd., which offloaded over 2.29 million shares in the same quarter, and Kayne Anderson Rudnick reducing their position by over 550,000 shares. This tells you that while some funds are using the discounted valuation (around $8.90 per share as of early November 2025) to build a position, others are rotating out.

Investor influence is a critical factor here. With institutions owning the majority, the board must be acutely aware of their preferences, especially following a year of significant stock price underperformance. The concentration is high-the top seven shareholders hold about 51% of the business. This means a handful of large funds, alongside the CEO's substantial personal stake, have considerable sway over strategic decisions, including the company's pivot toward agentic AI solutions like DavaFlow. The ongoing institutional activity, such as Mitsubishi UFJ Trust's recent stake increase in November 2025, underscores the global relevance of Endava plc's digital engineering capabilities, even as the market questions the near-term growth rebound.

To understand the core financial stability behind these moves, you should review the company's recent performance. Finance: Breaking Down Endava plc (DAVA) Financial Health: Key Insights for Investors is a good next step to map the financial reality to the investor sentiment.

Market Impact and Investor Sentiment

You're looking at Endava plc (DAVA) and seeing a disconnect: institutional investors hold a massive stake, but the stock price is near its 52-week low. The consensus sentiment right now is a cautious Hold, reflecting a market that is watching for AI-driven transformation to offset near-term revenue volatility.

The institutional confidence is high in terms of sheer volume, with hedge funds and other large investors owning between 62.23% and 80.95% of the stock. That's a huge chunk of the company. However, the stock's recent 12% pullback, which added to a one-year loss of roughly 64% for stockholders through early November 2025, shows that even the smart money is feeling the pain. This kind of sustained loss can defintely compel some large institutions to sell, which creates downward pressure for individual investors.

The core investors are betting on the long-term shift to digital engineering and AI-native solutions, which you can read more about in Endava plc (DAVA): History, Ownership, Mission, How It Works & Makes Money. They see the value in the company's strategic focus, even if clients are recalibrating spending in the short term.

Major Shareholders: Who's Buying Despite the Dip?

It's not all selling; some major players are actively increasing their positions, suggesting they see the current price as a buying opportunity. This is a classic move where long-term investors accumulate shares when market sentiment is weak.

For example, Alberta Investment Management Corp boosted its stake by a notable 35.6% in the second quarter of fiscal year 2025, acquiring an additional 338,334 shares. By the end of that quarter, they held 1,288,334 shares, valued at approximately $19.74 million. Also, Mitsubishi UFJ Trust & Banking Corp raised its holdings by 17.3% in Q2 FY2025, increasing their position to 454,536 ADRs, valued at roughly $6.96 million. These aren't small bets.

• Alberta Investment Management Corp: Increased stake by 35.6%.
• Mitsubishi UFJ Trust: Raised holdings by 17.3%.
• Fourth Sail Capital LP: Grew holdings by 52.9% in Q1 FY2025.

Market Response to Financials and Investor Moves

The market's reaction has been swift and often negative, primarily due to top-line misses and cautious guidance, despite strong profitability metrics. Here's the quick math on the volatility:

When Endava plc announced its Q3 FY2025 results in August 2025, the stock price fell by 6.11% immediately following the release, even though the adjusted diluted EPS of £0.34 beat the company's own guidance of £0.31 to £0.32 per share. The market is hyper-focused on revenue growth, not just cost control.

The full fiscal year 2025 revenue came in at £772.3 million, a 4.3% year-on-year increase. That growth is slow for a technology services company, and it's why analysts have been trimming their outlook. The Q1 FY2026 results, announced in November 2025, showed an 8.6% year-on-year revenue decline to £178.2 million, which was below guidance, mainly due to an unexpected credit given to a significant client.

Analyst Perspectives on Key Investor Impact

Analysts are generally in a wait-and-see mode, with a consensus Hold rating. The impact of key investors is viewed through the lens of stability and long-term vision, but the near-term outlook is challenging.

The recent price target cuts reflect the revenue headwinds. For instance, JPMorgan Chase & Co. cut its price objective from $13.00 to $10.00, and Guggenheim reduced its target from $18.00 to $15.00. This shows that the market is repricing the stock based on current client spending patterns, which are less predictable.

Still, the narrative from management and the analysts who maintain a 'Buy' rating centers on the company's AI strategy, specifically platforms like Dava Flow. The belief is that the institutional money is supporting the company's shift toward large-scale, AI-enabled core modernization projects, which will eventually lead to a big increase in share of wallet. What this estimate hides, of course, is the timing risk-it takes longer for these large strategic deals to move from ideation to production.

The action for you is clear: monitor the next quarter's revenue guidance. If the full-year FY2026 constant currency revenue change, currently guided between (4.5)% and (2.5)%, improves, it will signal that the institutional bet on AI and core modernization is starting to pay off.