Daktronics (NASDAQ:DAKT) Sets New 1-Year High Following Strong Earnings

Key Points

• Daktronics shares reached a new 52-week high of $21.61 after reporting better-than-expected quarterly earnings, with earnings per share at $0.33, surpassing estimates by $0.09.
• Wall Street analysts upgraded Daktronics from a "hold" to a "buy" rating, with a consensus target price of $26.00.
• Institutional investors now hold over 61% of Daktronics stock, with notable increases from several hedge funds during the first quarter.

Daktronics, Inc. (NASDAQ:DAKT - Get Free Report) shares reached a new 52-week high during mid-day trading on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $20.00 and last traded at $21.61, with a volume of 41591 shares changing hands. The stock had previously closed at $17.43.

The technology company reported $0.33 earnings per share for the quarter, beating the consensus estimate of $0.24 by $0.09. The company had revenue of $218.97 million during the quarter, compared to analyst estimates of $196.90 million. Daktronics had a net margin of 1.51% and a return on equity of 14.64%.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on DAKT. Zacks Research raised Daktronics from a "hold" rating to a "strong-buy" rating in a report on Thursday. Wall Street Zen upgraded Daktronics from a "buy" rating to a "strong-buy" rating in a report on Sunday. One equities research analyst has rated the stock with a Strong Buy rating and one has issued a Buy rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Strong Buy" and an average target price of $26.00.

Insider Activity at Daktronics

In related news, insider Sheila Mae Anderson sold 3,839 shares of the stock in a transaction on Thursday, August 7th. The stock was sold at an average price of $16.86, for a total transaction of $64,725.54. Following the completion of the sale, the insider directly owned 39,495 shares in the company, valued at approximately $665,885.70. This trade represents a 8.86% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 5.30% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Daktronics

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Northwestern Mutual Wealth Management Co. grew its stake in shares of Daktronics by 204.3% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 3,046 shares of the technology company's stock valued at $46,000 after buying an additional 2,045 shares in the last quarter. Quaker Wealth Management LLC grew its position in Daktronics by 200.0% in the second quarter. Quaker Wealth Management LLC now owns 3,800 shares of the technology company's stock worth $57,000 after acquiring an additional 7,600 shares in the last quarter. BNP Paribas Financial Markets increased its stake in shares of Daktronics by 66.8% during the 2nd quarter. BNP Paribas Financial Markets now owns 3,897 shares of the technology company's stock worth $59,000 after purchasing an additional 1,561 shares during the last quarter. Skandinaviska Enskilda Banken AB publ bought a new position in shares of Daktronics during the 2nd quarter valued at $62,000. Finally, Farther Finance Advisors LLC acquired a new stake in shares of Daktronics in the 2nd quarter valued at $79,000. 61.69% of the stock is owned by hedge funds and other institutional investors.

Daktronics Stock Performance

The firm has a market cap of $1.15 billion, a price-to-earnings ratio of 19.78, a price-to-earnings-growth ratio of 0.72 and a beta of 1.69. The firm's 50 day moving average is $17.06 and its 200-day moving average is $14.81. The company has a debt-to-equity ratio of 0.19, a quick ratio of 1.54 and a current ratio of 2.07.

Daktronics Company Profile

Daktronics, Inc designs, manufactures, and sells electronic scoreboards, programmable display systems and large screen video displays for sporting, commercial, and transportation applications in the United States and internationally. It operates through Commercial, Live Events, High School Park and Recreation, Transportation, and International segments.