Donnelley Financial Solutions (NYSE:DFIN) Raised to "Strong-Buy" at Wall Street Zen

Key Points

• Wall Street Zen upgraded Donnelley Financial Solutions to “strong-buy” from “buy.” Needham also raised its price target to $72, while the broader analyst consensus remains “Moderate Buy” with a $67 target.
• DFIN exceeded third-quarter expectations, reporting $1.07 in EPS versus the $0.84 consensus and $185 million in revenue, up 5.5% year over year. The company also posted improved profitability and cash flow.
• Shares opened at $66.48, near their 12-month high of $66.89, while institutional investors own 93.84% of the stock and an insider recently increased their holdings by more than 30%.

Donnelley Financial Solutions (NYSE:DFIN - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a note issued to investors on Saturday, Wall Street Zen reports.

Other equities research analysts have also issued reports about the stock. Needham & Company LLC lifted their price target on shares of Donnelley Financial Solutions from $60.00 to $72.00 and gave the company a "buy" rating in a report on Friday. Zacks Research cut shares of Donnelley Financial Solutions from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, July 28th. Finally, Weiss Ratings raised shares of Donnelley Financial Solutions from a "hold (c-)" rating to a "hold (c)" rating in a research note on Friday, September 4th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $67.00.

Donnelley Financial Solutions Stock Performance

Donnelley Financial Solutions stock opened at $66.48 on Friday. The company has a quick ratio of 1.33, a current ratio of 1.06 and a debt-to-equity ratio of 0.30. The stock has a market cap of $1.63 billion, a PE ratio of 15.15 and a beta of 0.75. Donnelley Financial Solutions has a 12-month low of $36.11 and a 12-month high of $66.89. The business's 50-day moving average price is $50.02 and its two-hundred day moving average price is $47.35.

Donnelley Financial Solutions (NYSE:DFIN - Get Free Report) last posted its earnings results on Thursday, October 29th. The company reported $1.07 EPS for the quarter, topping analysts' consensus estimates of $0.84 by $0.23. The firm had revenue of $185.00 million during the quarter, compared to analysts' expectations of $179.90 million. Donnelley Financial Solutions had a net margin of 12.37% and a return on equity of 26.70%. The business's revenue for the quarter was up 5.5% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.86 earnings per share. As a group, analysts expect that Donnelley Financial Solutions will post 4.41 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Joseph Leo Binz acquired 5,780 shares of Donnelley Financial Solutions stock in a transaction that occurred on Wednesday, September 2nd. The shares were acquired at an average price of $47.75 per share, for a total transaction of $275,995.00. Following the transaction, the director directly owned 24,704 shares of the company's stock, valued at approximately $1,179,616. The trade was a 30.54% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 5.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Donnelley Financial Solutions

Several large investors have recently bought and sold shares of DFIN. BlackRock Inc. acquired a new position in shares of Donnelley Financial Solutions in the second quarter valued at approximately $165,182,000. Alberta Investment Management Corp bought a new position in Donnelley Financial Solutions in the 2nd quarter valued at approximately $44,157,000. Rice Hall James & Associates LLC raised its holdings in Donnelley Financial Solutions by 1.8% in the 1st quarter. Rice Hall James & Associates LLC now owns 780,037 shares of the company's stock valued at $36,771,000 after buying an additional 14,098 shares during the last quarter. William Blair Investment Management LLC bought a new position in Donnelley Financial Solutions in the 2nd quarter valued at approximately $26,510,000. Finally, Algert Global LLC boosted its position in Donnelley Financial Solutions by 90.9% during the 2nd quarter. Algert Global LLC now owns 529,983 shares of the company's stock worth $22,233,000 after buying an additional 252,383 shares during the period. 93.84% of the stock is currently owned by institutional investors.

Key Donnelley Financial Solutions News

Here are the key news stories impacting Donnelley Financial Solutions this week:

• Positive Sentiment: Q3 earnings and revenue beat estimates. DFIN reported adjusted EPS of $1.07, above the $0.84 analyst consensus and up from $0.86 a year earlier. Revenue rose 5.5% year over year to $185.0 million, exceeding expectations of approximately $179.9 million. DFIN Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: Profitability and cash generation improved materially. Adjusted EBITDA increased 9.9% to $54.4 million, with the margin expanding to 29.4% from 28.2%. Operating cash flow rose 32% to $98.2 million, while free cash flow jumped 44.9% to $85.8 million. GAAP net earnings were $21.3 million, compared with a $40.9 million loss in the prior-year quarter. DFIN Reports Third-Quarter 2026 Results
• Positive Sentiment: Management provided supportive fourth-quarter expectations. DFIN forecast Q4 net sales of $175 million to $180 million and an adjusted EBITDA margin of 26% to 27%, indicating expectations for continued solid operating performance. DFIN Q4 Forecast
• Positive Sentiment: Needham raised its price target. Needham increased its target from $60 to $72 and assigned a “buy” rating, reinforcing bullish analyst sentiment and implying additional upside from the prevailing share price. Needham DFIN Price Target

About Donnelley Financial Solutions

Donnelley Financial Solutions, Inc NYSE: DFIN provides software, technology-enabled services and communications solutions that help public and private companies, investment firms, financial institutions and other organizations meet regulatory, compliance and reporting requirements.

The company's offerings include cloud-based disclosure and compliance software, filing and reporting services, regulatory data management, virtual data rooms and solutions for capital markets transactions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.