Donnelley Financial Solutions (NYSE:DFIN) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Analyst consensus: Five brokerages give DFIN an average rating of "Moderate Buy" (2 holds, 2 buys, 1 strong buy) with a 12‑month average price target of $61.50.
• Earnings beat: DFIN beat the quarter with $0.70 EPS vs. $0.40 expected and revenue of $172.5M (vs. $155.3M), up 10.4% year‑over‑year, and analysts expect ~4.12 EPS for the current year.
• Insider and institutional ownership: Insider Eric J. Johnson sold 20,280 shares for about $1.02M and now holds 116,814 shares; corporate insiders own 5.20% of the stock while institutional investors hold roughly 93.84%.

Donnelley Financial Solutions (NYSE:DFIN - Get Free Report) has earned an average rating of "Moderate Buy" from the five ratings firms that are presently covering the company, Marketbeat.com reports. Two investment analysts have rated the stock with a hold recommendation, two have given a buy recommendation and one has issued a strong buy recommendation on the company. The average twelve-month price target among brokers that have covered the stock in the last year is $61.50.

DFIN has been the topic of several recent research reports. DA Davidson reiterated a "buy" rating and set a $66.00 target price on shares of Donnelley Financial Solutions in a research report on Thursday, April 16th. Wall Street Zen upgraded shares of Donnelley Financial Solutions from a "buy" rating to a "strong-buy" rating in a research report on Saturday, February 7th. Needham & Company LLC reiterated a "buy" rating and set a $57.00 target price on shares of Donnelley Financial Solutions in a research report on Wednesday, January 14th. Weiss Ratings reiterated a "hold (c-)" rating on shares of Donnelley Financial Solutions in a research report on Monday, December 29th. Finally, Zacks Research downgraded shares of Donnelley Financial Solutions from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 20th.

Donnelley Financial Solutions Stock Down 0.0%

NYSE:DFIN opened at $50.49 on Monday. The firm's 50 day simple moving average is $48.65 and its 200 day simple moving average is $48.58. The company has a debt-to-equity ratio of 0.44, a current ratio of 1.06 and a quick ratio of 1.06. Donnelley Financial Solutions has a one year low of $37.07 and a one year high of $66.25. The company has a market cap of $1.29 billion, a PE ratio of 47.19 and a beta of 0.87.

Donnelley Financial Solutions (NYSE:DFIN - Get Free Report) last posted its earnings results on Tuesday, February 17th. The company reported $0.70 EPS for the quarter, topping the consensus estimate of $0.40 by $0.30. Donnelley Financial Solutions had a net margin of 4.22% and a return on equity of 23.88%. The business had revenue of $172.50 million for the quarter, compared to the consensus estimate of $155.27 million. During the same period last year, the company earned $0.40 EPS. The firm's revenue was up 10.4% compared to the same quarter last year. On average, research analysts anticipate that Donnelley Financial Solutions will post 4.12 earnings per share for the current year.

Insider Buying and Selling

In related news, insider Eric J. Johnson sold 20,280 shares of Donnelley Financial Solutions stock in a transaction that occurred on Friday, March 6th. The shares were sold at an average price of $50.16, for a total transaction of $1,017,244.80. Following the sale, the insider directly owned 116,814 shares in the company, valued at $5,859,390.24. This trade represents a 14.79% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 5.20% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Blue Trust Inc. lifted its position in shares of Donnelley Financial Solutions by 109.4% in the 1st quarter. Blue Trust Inc. now owns 643 shares of the company's stock worth $30,000 after purchasing an additional 336 shares during the period. Wealth Enhancement Advisory Services LLC acquired a new position in shares of Donnelley Financial Solutions in the 3rd quarter worth approximately $52,000. Fideuram Intesa Sanpaolo Private Banking S.P.A. acquired a new position in shares of Donnelley Financial Solutions in the 4th quarter worth approximately $70,000. Versant Capital Management Inc lifted its position in shares of Donnelley Financial Solutions by 28.9% in the 3rd quarter. Versant Capital Management Inc now owns 1,528 shares of the company's stock worth $79,000 after purchasing an additional 343 shares during the period. Finally, LSV Asset Management acquired a new position in shares of Donnelley Financial Solutions in the 3rd quarter worth approximately $87,000. Institutional investors and hedge funds own 93.84% of the company's stock.

About Donnelley Financial Solutions

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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