Kornit Digital (NASDAQ:KRNT) Shares Gap Up on Earnings Beat

Key Points

• Kornit Digital beat quarterly expectations, reporting EPS of $0.04 versus the $0.01 loss analysts expected and revenue of $55.32 million versus estimates of $52.80 million. Revenue increased 11.1% year over year.
• The earnings beat prompted a sharp opening gap, with shares rising from a prior close of $17.58 to open at $19.00 before trading at $17.47.
• Analyst sentiment remains mixed, with an average “Hold” rating and a $21.00 price target; institutional investors own a substantial 92.76% of the company’s stock.

Kornit Digital Ltd. (NASDAQ:KRNT - Get Free Report)'s share price gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $17.58, but opened at $19.00. Kornit Digital shares last traded at $17.47, with a volume of 96,517 shares trading hands.

The industrial products company reported $0.04 EPS for the quarter, beating the consensus estimate of ($0.01) by $0.05. Kornit Digital had a negative net margin of 7.93% and a negative return on equity of 1.15%. The firm had revenue of $55.32 million during the quarter, compared to analyst estimates of $52.80 million. During the same quarter last year, the business posted $0.03 EPS. The company's revenue for the quarter was up 11.1% on a year-over-year basis.

Analysts Set New Price Targets

KRNT has been the topic of several research analyst reports. Needham & Company LLC boosted their price objective on Kornit Digital from $20.00 to $22.00 and gave the stock a "buy" rating in a research report on Thursday, May 14th. Zacks Research lowered Kornit Digital from a "hold" rating to a "strong sell" rating in a research report on Thursday, July 30th. Finally, Morgan Stanley lifted their target price on Kornit Digital from $17.00 to $18.00 and gave the stock an "equal weight" rating in a research note on Tuesday, June 23rd. Two research analysts have rated the stock with a Buy rating, two have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, Kornit Digital has an average rating of "Hold" and an average price target of $21.00.

Institutional Investors Weigh In On Kornit Digital

A number of hedge funds have recently modified their holdings of KRNT. CIBC Private Wealth Group LLC grew its holdings in Kornit Digital by 1,359.8% during the third quarter. CIBC Private Wealth Group LLC now owns 1,927 shares of the industrial products company's stock valued at $26,000 after purchasing an additional 1,795 shares during the period. Johnson Financial Group Inc. bought a new stake in shares of Kornit Digital in the third quarter valued at $27,000. Raymond James Financial Inc. purchased a new position in shares of Kornit Digital during the 2nd quarter valued at $31,000. State of Tennessee Department of Treasury purchased a new position in shares of Kornit Digital during the 2nd quarter valued at $35,000. Finally, Quadrature Capital Ltd bought a new position in shares of Kornit Digital during the 4th quarter worth $144,000. Institutional investors own 92.76% of the company's stock.

Kornit Digital Trading Down 0.7%

The firm has a fifty day moving average of $15.86 and a two-hundred day moving average of $15.39. The company has a market cap of $750.47 million, a PE ratio of -44.64 and a beta of 1.72.

About Kornit Digital

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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