Endava plc (DAVA)

Too risky for action: Endava carries a £365M goodwill impairment, shrinking revenue and compressed margins, and roughly £190M of net debt against a ~$103M market capitalization — while an Audit Committee investigation into the accounting for customer and supplier agreements has put the CFO on leave and delayed the FY2026 results and 20-F. Operating cash flow is still modestly positive, but the reported financials cannot be treated as reliable until the investigation concludes.

Dominant driver of the setup is the adverse 2026-09-21 accounting shock — CFO placed on administrative leave amid an Audit Committee review (announced) with FY2026 results and 20-F delayed — compounded by post-shock downgrades and a reported securities class action, none of it offset by any bullish catalyst; the sentiment delta is indeterminate (baseline window genuinely sparse, no scorable coverage) while the 14-day window itself is clearly adverse. Red-Flag Screen: no severe flags; a moderate red-flag cap applied for sharply deteriorating ≤14d sentiment with no offsetting bullish catalyst.

Do Nothing (hard-blocked): fundamentalScore 1 and qualitativeScore 2 are both below the required floor of 3, and liquidity fails on both measures (avgDollarVolume20 $1.72M < $5M floor; recent 3-session regular-session average ≈ $1.27M < $1.5M). Chart read for the record: DAVA is a broken downtrend — price 1.92 sits below SMA20 2.49, SMA50 2.82, SMA200 4.15, EMA9 1.99 and EMA21 2.36 after a mid-September slide from ~2.94 to a 1.60 low; ADX14 36.91 (rising from ~16.6 over two weeks) with price below all MAs confirms a strong DOWN trend; MACD −0.34/−0.26/−0.09 is negative although the histogram is narrowing (−0.14 → −0.09) on a two-day reflex bounce; RSI14 33.13 is recovering from an 18.45 washout; Williams %R −78.95; ATR14 0.19 (9.90% of price) and StdDev20 0.55 (28.4% of price) mark extreme volatility. technicalScore 1 — bearish/broken structure; the bounce is low-volume and countertrend.