Donnelley Financial Solutions (NYSE:DFIN) Stock Price Down 14.8% - Time to Sell?

Key Points

• DFIN shares fell 14.8% to about $43.76, with trading volume down 86% from its average session level.
• Analyst sentiment remains cautiously positive: the stock has a consensus “Moderate Buy” rating and a $59.50 average price target, although several firms recently downgraded their ratings or lowered targets.
• The company exceeded quarterly expectations, reporting $1.76 EPS versus $1.65 expected and $224.2 million in revenue, up 2.8% year over year; institutional investors own 93.84% of its shares.

Donnelley Financial Solutions (NYSE:DFIN - Get Free Report)'s share price was down 14.8% on Thursday . The stock traded as low as $43.23 and last traded at $43.7590. 40,760 shares traded hands during trading, a decline of 86% from the average session volume of 286,188 shares. The stock had previously closed at $51.39.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on DFIN shares. DA Davidson cut their target price on shares of Donnelley Financial Solutions from $66.00 to $62.00 and set a "buy" rating on the stock in a research note on Wednesday, May 6th. Wall Street Zen cut shares of Donnelley Financial Solutions from a "strong-buy" rating to a "buy" rating in a research report on Saturday, June 27th. Weiss Ratings restated a "hold (c-)" rating on shares of Donnelley Financial Solutions in a research report on Friday, June 12th. Finally, Zacks Research cut Donnelley Financial Solutions from a "strong-buy" rating to a "hold" rating in a research note on Tuesday. One 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 stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $59.50.

Donnelley Financial Solutions Stock Performance

The firm's 50-day moving average price is $42.74 and its two-hundred day moving average price is $46.25. The company has a quick ratio of 1.41, a current ratio of 1.41 and a debt-to-equity ratio of 0.59. The firm has a market capitalization of $1.11 billion, a PE ratio of 34.52 and a beta of 0.72.

Donnelley Financial Solutions (NYSE:DFIN - Get Free Report) last announced its earnings results on Thursday, July 30th. The company reported $1.76 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.65 by $0.11. Donnelley Financial Solutions had a net margin of 4.52% and a return on equity of 24.80%. The company had revenue of $224.20 million for the quarter, compared to the consensus estimate of $221.40 million. During the same period in the previous year, the business earned $1.49 EPS. The company's revenue was up 2.8% on a year-over-year basis. As a group, research analysts predict that Donnelley Financial Solutions will post 4.46 earnings per share for the current fiscal year.

Institutional Trading of Donnelley Financial Solutions

Hedge funds and other institutional investors have recently modified their holdings of the company. Blue Trust Inc. grew its stake 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 valued at $30,000 after buying an additional 336 shares in the last quarter. Fideuram Intesa Sanpaolo Private Banking S.P.A. acquired a new stake in shares of Donnelley Financial Solutions in the fourth quarter worth $70,000. Wealth Enhancement Advisory Services LLC grew its stake in Donnelley Financial Solutions by 117.6% in the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 2,106 shares of the company's stock valued at $98,000 after buying an additional 1,138 shares during the last quarter. Vestcor Inc bought a new position in Donnelley Financial Solutions in the 3rd quarter worth $160,000. Finally, LSV Asset Management lifted its position in shares of Donnelley Financial Solutions by 117.6% during the 4th quarter. LSV Asset Management now owns 3,700 shares of the company's stock worth $173,000 after purchasing an additional 2,000 shares during the last quarter. 93.84% of the stock is currently owned by hedge funds and other 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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