Daktronics (NASDAQ:DAKT) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded Daktronics from “buy” to “hold,” though broader analyst sentiment remains “Moderate Buy” with an average price target of $31.00.
• Daktronics reported quarterly earnings of $0.40 per share and revenue of $234.6 million, exceeding analyst estimates of $0.35 EPS and $230.3 million in revenue.
• The stock opened at $19.35, near its 12-month low, while insiders recently sold shares; institutional investors own a significant 61.69% of the company.

Daktronics (NASDAQ:DAKT - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

Other equities analysts have also recently issued research reports about the stock. Weiss Ratings raised shares of Daktronics from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, June 25th. Craig Hallum reissued a "buy" rating and issued a $33.00 target price on shares of Daktronics in a research report on Thursday. Zacks Research raised Daktronics from a "strong sell" rating to a "hold" rating in a research report on Monday, June 15th. Finally, Roth Capital upped their price target on Daktronics from $26.00 to $29.00 and gave the stock a "buy" rating in a research note on Thursday, July 2nd. Two equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $31.00.

Daktronics Trading Down 0.7%

NASDAQ DAKT opened at $19.35 on Friday. The firm's 50-day moving average is $19.93 and its two-hundred day moving average is $20.60. Daktronics has a 12 month low of $17.09 and a 12 month high of $28.27. The company has a debt-to-equity ratio of 0.17, a current ratio of 2.17 and a quick ratio of 1.74. The stock has a market capitalization of $930.54 million, a P/E ratio of 19.74, a PEG ratio of 0.63 and a beta of 1.68.

Daktronics (NASDAQ:DAKT - Get Free Report) last announced its quarterly earnings results on Wednesday, September 2nd. The technology company reported $0.40 earnings per share for the quarter, beating analysts' consensus estimates of $0.35 by $0.05. The business had revenue of $234.57 million during the quarter, compared to analysts' expectations of $230.27 million. Daktronics had a net margin of 5.66% and a return on equity of 18.05%. During the same period last year, the business earned $0.33 earnings per share. On average, sell-side analysts anticipate that Daktronics will post 1.24 earnings per share for the current year.

Insider Activity

In other news, EVP Bradley Wiemann sold 4,000 shares of the stock in a transaction dated Friday, July 17th. The shares were sold at an average price of $19.22, for a total transaction of $76,880.00. Following the sale, the executive vice president owned 125,946 shares of the company's stock, valued at approximately $2,420,682.12. This represents a 3.08% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Sheila Anderson sold 3,636 shares of Daktronics stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $20.01, for a total transaction of $72,756.36. Following the completion of the transaction, the insider owned 48,371 shares of the company's stock, valued at $967,903.71. This trade represents a 6.99% decrease in their position. The disclosure for this sale is available in the SEC filing. 4.60% of the stock is currently owned by corporate insiders.

Institutional Trading of Daktronics

A number of large investors have recently modified their holdings of DAKT. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in shares of Daktronics by 0.7% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 72,856 shares of the technology company's stock valued at $1,440,000 after acquiring an additional 519 shares in the last quarter. Royal Bank of Canada grew its stake in Daktronics by 12.7% during the 4th quarter. Royal Bank of Canada now owns 6,430 shares of the technology company's stock worth $127,000 after purchasing an additional 724 shares in the last quarter. Osaic Holdings Inc. grew its stake in Daktronics by 3.2% during the 2nd quarter. Osaic Holdings Inc. now owns 23,638 shares of the technology company's stock worth $357,000 after purchasing an additional 728 shares in the last quarter. PNC Financial Services Group Inc. increased its holdings in Daktronics by 13.2% during the 1st quarter. PNC Financial Services Group Inc. now owns 7,712 shares of the technology company's stock worth $151,000 after purchasing an additional 898 shares during the period. Finally, Verition Fund Management LLC increased its holdings in Daktronics by 3.3% during the 3rd quarter. Verition Fund Management LLC now owns 27,983 shares of the technology company's stock worth $585,000 after purchasing an additional 898 shares during the period. Hedge funds and other institutional investors own 61.69% of the company's stock.

Daktronics News Roundup

Here are the key news stories impacting Daktronics this week:

• Positive Sentiment: Quarterly earnings exceeded expectations. Daktronics reported earnings of $0.40 per share, above the $0.35 consensus estimate, while revenue of $234.6 million also topped forecasts. The earnings beat helped support an initial move higher in the stock. Daktronics Shares Gap Up on Earnings Beat
• Positive Sentiment: Analysts raised their longer-term outlook. Sidoti increased its fiscal 2027 EPS forecast to $1.25 from $1.21, including higher estimates for the third and fourth quarters, although its second-quarter forecast was reduced. Sidoti Daktronics estimates
• Positive Sentiment: Investment commentary remains constructive. Diamond Hill described Daktronics as a turnaround opportunity supported by a strong balance sheet. Management has also outlined fiscal 2028 targets calling for 7%–10% annual revenue growth and 10%–12% operating margins, while considering an exit from international transportation operations.
• Neutral Sentiment: The restructuring outlook has mixed implications. Around 100 jobs may be at risk at Daktronics’ Clare, Ireland operation. Potential cost savings could help margins, but the workforce reduction signals near-term operational disruption and weaker local demand. Around 100 jobs at risk at Daktronics in County Clare
• Negative Sentiment: Regulatory and reputational risk is the main overhang. The SEC and NBA are seeking information about Daktronics’ endorsement arrangement involving Kawhi Leonard and the Clippers amid allegations concerning sponsor payments and services that were not delivered. Daktronics says it is cooperating, but the investigation could lead to legal costs, penalties, disclosure requirements or reputational damage. Daktronics Says SEC, NBA Seek Information on Kawhi Leonard

About Daktronics

Daktronics, Inc NASDAQ: DAKT is a leading designer and manufacturer of electronic display systems, video boards, scoreboards and related control systems. Founded in 1968 in Brookings, South Dakota by Al Kurtenbach and Duane Sander, the company has built a reputation for delivering custom visual display solutions to a wide range of markets. Its product portfolio includes large-format LED video displays, programmable message centers, digital billboards, and audio-visual solutions tailored to sports venues, transportation authorities, retail environments and live event producers.

The company's primary business activities encompass the engineering, fabrication and installation of display systems for customers around the world.

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