Donnelley Financial Solutions (NYSE:DFIN) Cut to Hold at Zacks Research

Key Points

• Zacks Research downgraded Donnelley Financial Solutions from “strong buy” to “hold.” Despite the downgrade, analysts maintain an overall “Moderate Buy” consensus with an average price target of $59.50.
• DFIN shares opened at $51.33, below the consensus target, with a market capitalization of approximately $1.28 billion and a 12-month trading range of $36.11 to $65.26.
• The company exceeded quarterly expectations, reporting $1.45 in EPS versus the $1.35 estimate and revenue of $205.5 million. Institutional investors own 93.84% of outstanding shares, with several major funds recently increasing their positions.

Donnelley Financial Solutions (NYSE:DFIN - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued on Tuesday,Zacks.com reports.

Several other brokerages have also recently issued reports on DFIN. DA Davidson decreased their price target on shares of Donnelley Financial Solutions from $66.00 to $62.00 and set a "buy" rating for the company in a research report on Wednesday, May 6th. Weiss Ratings reiterated a "hold (c-)" rating on shares of Donnelley Financial Solutions in a report on Friday, June 12th. Finally, Wall Street Zen cut shares of Donnelley Financial Solutions from a "strong-buy" rating to a "buy" rating in a research note on Saturday, June 27th. One research 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 MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $59.50.

Donnelley Financial Solutions Stock Performance

Shares of DFIN stock opened at $51.33 on Tuesday. The business's 50-day moving average price is $42.74 and its 200-day moving average price is $46.25. Donnelley Financial Solutions has a 12 month low of $36.11 and a 12 month high of $65.26. The firm has a market capitalization of $1.28 billion, a price-to-earnings ratio of 39.79 and a beta of 0.72. The company has a current ratio of 1.41, a quick ratio of 1.41 and a debt-to-equity ratio of 0.59.

Donnelley Financial Solutions (NYSE:DFIN - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The company reported $1.45 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.35 by $0.10. The company had revenue of $205.50 million during the quarter, compared to the consensus estimate of $204.80 million. Donnelley Financial Solutions had a return on equity of 24.80% and a net margin of 4.52%.The firm's revenue was up 2.2% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.24 earnings per share. Equities research analysts forecast that Donnelley Financial Solutions will post 4.46 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. UBS Group AG lifted its holdings in Donnelley Financial Solutions by 188.1% in the fourth quarter. UBS Group AG now owns 134,365 shares of the company's stock valued at $6,274,000 after buying an additional 87,730 shares during the period. William Blair Investment Management LLC grew its holdings in Donnelley Financial Solutions by 8.6% during the 4th quarter. William Blair Investment Management LLC now owns 518,833 shares of the company's stock worth $24,224,000 after acquiring an additional 40,968 shares during the period. Fifth Third Bancorp raised its position in shares of Donnelley Financial Solutions by 13,834.6% in the 1st quarter. Fifth Third Bancorp now owns 21,738 shares of the company's stock worth $1,025,000 after acquiring an additional 21,582 shares in the last quarter. Royce & Associates LP raised its position in shares of Donnelley Financial Solutions by 36.0% in the 4th quarter. Royce & Associates LP now owns 590,136 shares of the company's stock worth $27,553,000 after acquiring an additional 156,059 shares in the last quarter. Finally, Louisiana State Employees Retirement System acquired a new position in shares of Donnelley Financial Solutions in the 1st quarter valued at about $556,000. Institutional investors own 93.84% of the company's stock.

Donnelley Financial Solutions Company Profile

Donnelley Financial Solutions NYSE: DFIN offers risk and compliance software and managed services designed to help corporations, financial institutions and legal firms meet regulatory and reporting requirements worldwide. Headquartered in Chicago, the company delivers a cloud-based platform for regulatory filings, content automation, virtual data rooms and board communications. Its solutions are tailored to support public companies with SEC, FCA and other global filing obligations, as well as banks, asset managers and credit unions seeking to streamline compliance workflows.

Among DFIN's flagship products is ActiveDisclosure, a SaaS application that automates the creation, review and filing of disclosure documents.

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