Donnelley Financial Solutions (NYSE:DFIN) Stock Price Down 11.2% - Should You Sell?

Key Points

• Shares fell 11.2% to about $44.96 on Tuesday (from a $50.63 close), trading thinly with only 28,123 shares changing hands—about an 89% drop from average volume.
• Earnings beat: DFIN reported $1.45 EPS vs. $1.35 expected and $205.5M revenue (up 2.2% YoY), but the stock trades at a high P/E of 39.43 with a $1.08B market cap.
• Analyst sentiment is mixed but optimistic overall—MarketBeat shows a consensus of "Moderate Buy" with a $61.50 price target—while insiders sold shares and institutional ownership is very high at about 93.84%.

Donnelley Financial Solutions (NYSE:DFIN - Get Free Report)'s stock price fell 11.2% during trading on Tuesday . The company traded as low as $43.44 and last traded at $44.9620. 28,123 shares were traded during mid-day trading, a decline of 89% from the average session volume of 249,919 shares. The stock had previously closed at $50.63.

Analyst Ratings Changes

A number of equities analysts have commented on the company. Zacks Research downgraded Donnelley Financial Solutions from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 20th. DA Davidson reiterated a "buy" rating and set a $66.00 price objective on shares of Donnelley Financial Solutions in a research report on Thursday, April 16th. Needham & Company LLC reissued a "buy" rating and set a $57.00 target price on shares of Donnelley Financial Solutions in a report on Wednesday, January 14th. Finally, Wall Street Zen raised Donnelley Financial Solutions from a "buy" rating to a "strong-buy" rating in a report on Saturday, February 7th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $61.50.

Donnelley Financial Solutions Stock Performance

The firm's fifty day moving average price is $49.10 and its 200 day moving average price is $48.52. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 0.44. The firm has a market capitalization of $1.08 billion, a PE ratio of 39.43 and a beta of 0.83.

Donnelley Financial Solutions (NYSE:DFIN - Get Free Report) last posted its quarterly earnings results on Tuesday, May 5th. The company reported $1.45 EPS for the quarter, beating the consensus estimate of $1.35 by $0.10. The business had revenue of $205.50 million for the quarter, compared to analysts' expectations of $204.80 million. Donnelley Financial Solutions had a net margin of 4.22% and a return on equity of 23.88%. Donnelley Financial Solutions's revenue was up 2.2% on a year-over-year basis. During the same period in the previous year, the company posted $1.24 EPS. On average, research analysts anticipate that Donnelley Financial Solutions will post 4.12 earnings per share for the current year.

Insider Activity at Donnelley Financial Solutions

In other news, insider Eric J. Johnson sold 20,280 shares of the stock in a transaction dated Friday, March 6th. The stock was sold at an average price of $50.16, for a total transaction of $1,017,244.80. Following the transaction, the insider owned 116,814 shares of the company's stock, valued at approximately $5,859,390.24. This represents a 14.79% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Corporate insiders own 5.20% of the company's stock.

Institutional Investors Weigh In On Donnelley Financial Solutions

A number of hedge funds have recently bought and sold shares of DFIN. Alliancebernstein L.P. boosted its holdings in Donnelley Financial Solutions by 1,842.6% during the second quarter. Alliancebernstein L.P. now owns 592,653 shares of the company's stock valued at $36,537,000 after acquiring an additional 562,144 shares during the period. Alberta Investment Management Corp raised its position in Donnelley Financial Solutions by 151.3% in the fourth quarter. Alberta Investment Management Corp now owns 879,600 shares of the company's stock worth $41,069,000 after purchasing an additional 529,600 shares in the last quarter. Royce & Associates LP raised its position in Donnelley Financial Solutions by 156.2% in the third quarter. Royce & Associates LP now owns 434,077 shares of the company's stock worth $22,325,000 after purchasing an additional 264,659 shares in the last quarter. Simcoe Capital Management LLC raised its position in Donnelley Financial Solutions by 34.0% in the second quarter. Simcoe Capital Management LLC now owns 1,037,735 shares of the company's stock worth $63,976,000 after purchasing an additional 263,570 shares in the last quarter. Finally, Shapiro Capital Management LLC increased its holdings in shares of Donnelley Financial Solutions by 33.1% during the third quarter. Shapiro Capital Management LLC now owns 711,366 shares of the company's stock worth $36,586,000 after buying an additional 176,720 shares in the last quarter. 93.84% of the stock is currently owned by institutional investors.

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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