Medina Value Partners LLC Makes New $12.73 Million Investment in Kornit Digital Ltd. $KRNT

Key Points

• Medina Value Partners LLC acquired 943,084 shares of Kornit Digital (NASDAQ:KRNT) in Q3—about $12.73 million—representing roughly 2.11% ownership of the company and ~3.0% of Medina’s portfolio (its 18th-largest holding).
• Kornit’s board authorized a share buyback of up to $100.0 million (about 17.2% of outstanding shares), a move that typically signals management believes the stock may be undervalued.
• In the latest quarter Kornit reported $0.18 EPS (beat the $0.14 estimate) and $58.86M in revenue, but revenue declined 3% year-over-year and the company remains unprofitable; analysts’ consensus is a Hold with an average target of $20.25.

Medina Value Partners LLC acquired a new position in shares of Kornit Digital Ltd. (NASDAQ:KRNT - Free Report) in the 3rd quarter, according to its most recent disclosure with the SEC. The institutional investor acquired 943,084 shares of the industrial products company's stock, valued at approximately $12,732,000. Kornit Digital makes up about 3.0% of Medina Value Partners LLC's portfolio, making the stock its 18th biggest holding. Medina Value Partners LLC owned approximately 2.11% of Kornit Digital as of its most recent filing with the SEC.

Several other institutional investors have also modified their holdings of KRNT. Dudley & Shanley Inc. lifted its stake in Kornit Digital by 97.5% in the third quarter. Dudley & Shanley Inc. now owns 1,258,895 shares of the industrial products company's stock worth $16,995,000 after purchasing an additional 621,595 shares during the last quarter. Arrowstreet Capital Limited Partnership boosted its position in Kornit Digital by 79.9% during the second quarter. Arrowstreet Capital Limited Partnership now owns 557,873 shares of the industrial products company's stock worth $11,107,000 after acquiring an additional 247,763 shares during the last quarter. Thompson Investment Management Inc. grew its stake in shares of Kornit Digital by 169.5% in the third quarter. Thompson Investment Management Inc. now owns 789,761 shares of the industrial products company's stock worth $10,662,000 after acquiring an additional 496,754 shares during the last quarter. Hood River Capital Management LLC lifted its position in shares of Kornit Digital by 39.1% during the 2nd quarter. Hood River Capital Management LLC now owns 2,182,569 shares of the industrial products company's stock worth $43,455,000 after buying an additional 613,070 shares during the last quarter. Finally, Magnetar Financial LLC bought a new stake in shares of Kornit Digital in the 2nd quarter worth approximately $439,000. Institutional investors own 92.76% of the company's stock.

Kornit Digital Trading Up 0.6%

KRNT stock opened at $14.13 on Friday. The stock's 50 day simple moving average is $14.69 and its 200 day simple moving average is $14.23. The firm has a market cap of $632.84 million, a P/E ratio of -45.58 and a beta of 1.79. Kornit Digital Ltd. has a 12-month low of $11.93 and a 12-month high of $23.48.

Kornit Digital (NASDAQ:KRNT - Get Free Report) last issued its quarterly earnings data on Wednesday, February 11th. The industrial products company reported $0.18 earnings per share for the quarter, topping the consensus estimate of $0.14 by $0.04. The company had revenue of $58.86 million during the quarter, compared to analyst estimates of $58.16 million. Kornit Digital had a negative return on equity of 1.07% and a negative net margin of 6.49%.The firm's revenue for the quarter was down 3.0% compared to the same quarter last year. During the same period in the prior year, the business posted $0.18 earnings per share. On average, research analysts forecast that Kornit Digital Ltd. will post -0.2 EPS for the current fiscal year.

Kornit Digital declared that its board has authorized a share buyback program on Monday, November 17th that allows the company to repurchase $100.00 million in outstanding shares. This repurchase authorization allows the industrial products company to purchase up to 17.2% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company's board of directors believes its stock is undervalued.

Analysts Set New Price Targets

KRNT has been the topic of several research reports. Needham & Company LLC reissued a "buy" rating and issued a $20.00 target price on shares of Kornit Digital in a research report on Wednesday, February 11th. Morgan Stanley reaffirmed a "positive" rating and set a $17.00 target price on shares of Kornit Digital in a report on Wednesday, February 11th. Wall Street Zen raised shares of Kornit Digital from a "sell" rating to a "hold" rating in a report on Saturday, March 7th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Kornit Digital in a research report on Friday, December 26th. Three research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $20.25.

Kornit Digital Profile

Kornit Digital Ltd. NASDAQ: KRNT is a global technology company specializing in digital textile printing solutions. Headquartered in Rosh Ha'Ayin, Israel, Kornit develops and manufactures an integrated ecosystem of industrial inkjet printers, proprietary NeoPigment inks and pretreatment systems. Its product portfolio addresses a range of applications including direct-to-garment, direct-to-fabric, digital embellishment and hybrid manufacturing, enabling businesses to produce custom apparel, sportswear, fashion and home textiles on demand.

The company's flagship offerings include the Avalanche and Atlas series for high-volume production, as well as the Storm and Helix lines designed for mid-to-large scale operations.

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