Kornit Digital Ltd. (NASDAQ:KRNT) Given Consensus Recommendation of "Hold" by Brokerages

Key Points

• Analyst consensus: Five analysts rate Kornit Digital a consensus "Hold" (1 sell, 1 hold, 3 buy) with an average 12‑month price target of $20.25.
• Kornit beat quarterly estimates (EPS $0.18 vs $0.14; revenue $58.86M vs $58.16M) but revenue declined 3% year‑over‑year and the company still reports a negative net margin (-6.49%) and negative ROE (-1.07%).
• The board authorized a $100 million share buyback (up to 17.2% of shares) and institutional investors now own roughly 92.8% of the stock, with several large funds recently increasing their positions.

Shares of Kornit Digital Ltd. (NASDAQ:KRNT - Get Free Report) have earned a consensus rating of "Hold" from the five analysts that are presently covering the company, Marketbeat reports. One research analyst has rated the stock with a sell rating, one has given a hold rating and three have given a buy rating to the company. The average 12 month price target among brokers that have covered the stock in the last year is $20.25.

A number of analysts have issued reports on the company. 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 issued a $17.00 price objective on shares of Kornit Digital in a research note on Wednesday, February 11th. Weiss Ratings reissued a "sell (d-)" rating on shares of Kornit Digital in a research note on Friday, December 26th. Finally, Wall Street Zen upgraded Kornit Digital from a "sell" rating to a "hold" rating in a report on Saturday.

Kornit Digital Price Performance

Shares of KRNT stock opened at $14.42 on Wednesday. Kornit Digital has a 1-year low of $11.93 and a 1-year high of $23.48. The firm has a market cap of $645.87 million, a PE ratio of -46.51 and a beta of 1.79. The company has a 50-day moving average of $14.69 and a two-hundred day moving average of $14.22.

Kornit Digital (NASDAQ:KRNT - Get Free Report) last released its quarterly earnings results on Wednesday, February 11th. The industrial products company reported $0.18 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.14 by $0.04. Kornit Digital had a negative net margin of 6.49% and a negative return on equity of 1.07%. The business had revenue of $58.86 million for the quarter, compared to the consensus estimate of $58.16 million. During the same period in the previous year, the firm earned $0.18 EPS. The business's revenue was down 3.0% on a year-over-year basis. Sell-side analysts anticipate that Kornit Digital will post -0.2 EPS for the current fiscal year.

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

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in KRNT. Senvest Management LLC lifted its holdings in Kornit Digital by 4.1% during the 4th quarter. Senvest Management LLC now owns 4,141,355 shares of the industrial products company's stock worth $59,553,000 after buying an additional 162,100 shares in the last quarter. Morgan Stanley grew its stake in shares of Kornit Digital by 26.5% in the fourth quarter. Morgan Stanley now owns 3,998,548 shares of the industrial products company's stock worth $57,499,000 after acquiring an additional 838,814 shares in the last quarter. Artisan Partners Limited Partnership grew its stake in shares of Kornit Digital by 32.6% in the fourth quarter. Artisan Partners Limited Partnership now owns 2,647,804 shares of the industrial products company's stock worth $38,075,000 after acquiring an additional 650,283 shares in the last quarter. Granahan Investment Management LLC increased its position in shares of Kornit Digital by 31.4% during the fourth quarter. Granahan Investment Management LLC now owns 2,569,663 shares of the industrial products company's stock worth $36,952,000 after acquiring an additional 614,513 shares during the period. Finally, Hood River Capital Management LLC raised its stake in shares of Kornit Digital by 39.1% in the second quarter. Hood River Capital Management LLC now owns 2,182,569 shares of the industrial products company's stock valued at $43,455,000 after acquiring an additional 613,070 shares in the last quarter. Institutional investors and hedge funds own 92.76% of the company's stock.

Kornit Digital Company 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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