Digimarc (NASDAQ:DMRC) Releases Earnings Results, Beats Expectations By $0.25 EPS

Key Points

• Digimarc beat quarterly earnings expectations: The company reported an adjusted loss of $0.08 per share, $0.25 better than the consensus estimate, while revenue of $7.39 million exceeded forecasts of $7.10 million.
• Shares declined after the results, trading at $7.04, with Digimarc remaining unprofitable and posting a negative net margin of 85.75% and negative return on equity of 21.81%.
• Analyst sentiment remains mixed: Ratings include one Buy and one Sell, resulting in an overall “Hold” consensus and an average price target of $15.00; institutional investors own 66.85% of the stock.

Digimarc (NASDAQ:DMRC - Get Free Report) released its earnings results on Thursday. The information technology services provider reported ($0.08) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.33) by $0.25, FiscalAI reports. The business had revenue of $7.39 million for the quarter, compared to analyst estimates of $7.10 million. Digimarc had a negative return on equity of 21.81% and a negative net margin of 85.75%.

Digimarc Stock Performance

Shares of NASDAQ:DMRC traded down $0.42 during midday trading on Thursday, reaching $7.04. The company's stock had a trading volume of 207,648 shares, compared to its average volume of 223,841. The firm has a market capitalization of $157.75 million, a price-to-earnings ratio of -5.54 and a beta of 2.30. The firm has a 50 day moving average price of $8.14 and a two-hundred day moving average price of $7.48. Digimarc has a fifty-two week low of $4.07 and a fifty-two week high of $17.47.

Hedge Funds Weigh In On Digimarc

Institutional investors and hedge funds have recently made changes to their positions in the stock. Cubist Systematic Strategies LLC purchased a new stake in shares of Digimarc during the first quarter valued at approximately $128,000. Jane Street Group LLC lifted its holdings in Digimarc by 915.0% during the 1st quarter. Jane Street Group LLC now owns 69,538 shares of the information technology services provider's stock worth $891,000 after purchasing an additional 62,687 shares in the last quarter. Geode Capital Management LLC boosted its stake in Digimarc by 1.4% in the 2nd quarter. Geode Capital Management LLC now owns 371,835 shares of the information technology services provider's stock worth $4,913,000 after purchasing an additional 5,191 shares during the period. JPMorgan Chase & Co. grew its holdings in Digimarc by 17.8% during the 2nd quarter. JPMorgan Chase & Co. now owns 106,375 shares of the information technology services provider's stock valued at $1,405,000 after buying an additional 16,106 shares in the last quarter. Finally, Quantbot Technologies LP bought a new stake in shares of Digimarc during the second quarter valued at about $190,000. Institutional investors own 66.85% of the company's stock.

Analysts Set New Price Targets

DMRC has been the subject of a number of recent research reports. Wall Street Zen raised shares of Digimarc to a "hold" rating in a research report on Saturday, July 18th. Needham & Company LLC lifted their price objective on shares of Digimarc from $10.00 to $15.00 and gave the stock a "buy" rating in a research note on Thursday, May 14th. Finally, Weiss Ratings reissued a "sell (e+)" rating on shares of Digimarc in a report on Friday, July 17th. One investment analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $15.00.

About Digimarc

Digimarc Corporation is a technology company specializing in digital identification and authentication solutions. Its core offering centers on embedding imperceptible digital watermarks into images, audio, video and packaging materials. These watermarks carry unique identifiers that enable secure tracking, brand protection and content provenance across print and digital channels.

The company's product suite includes software development kits and cloud-based services that allow enterprises to integrate digital watermarking into their existing workflows.

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