Kornit Digital (NASDAQ:KRNT) Trading Down 9.4% on Analyst Downgrade

Key Points

• Kornit Digital's shares fell 9.4% after Needham & Company downgraded its price target from $30 to $25, despite maintaining a buy rating on the stock.
• The stock recorded a significant trading volume decline, with approximately 60,511 shares traded, representing an 80% decrease from its average.
• Analysts currently have a consensus rating of "Moderate Buy" for Kornit Digital, with an average price target of $31.40, while the company's latest earnings report beat expectations.

Kornit Digital Ltd. (NASDAQ:KRNT - Get Free Report)'s stock price fell 9.4% during mid-day trading on Thursday after Needham & Company LLC lowered their price target on the stock from $30.00 to $25.00. Needham & Company LLC currently has a buy rating on the stock. Kornit Digital traded as low as $14.05 and last traded at $13.80. 60,511 shares changed hands during mid-day trading, a decline of 80% from the average session volume of 296,247 shares. The stock had previously closed at $15.23.

Separately, Morgan Stanley reissued an "overweight" rating on shares of Kornit Digital in a report on Thursday, May 15th. One equities research analyst has rated the stock with a hold rating, three have assigned a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, Kornit Digital presently has a consensus rating of "Buy" and a consensus target price of $31.40.

Hedge Funds Weigh In On Kornit Digital

A number of institutional investors have recently added to or reduced their stakes in the business. Kornitzer Capital Management Inc. KS increased its stake in Kornit Digital by 1.1% in the 2nd quarter. Kornitzer Capital Management Inc. KS now owns 366,505 shares of the industrial products company's stock worth $7,297,000 after acquiring an additional 4,000 shares during the last quarter. Stephens Investment Management Group LLC increased its position in shares of Kornit Digital by 12.8% during the 2nd quarter. Stephens Investment Management Group LLC now owns 1,526,904 shares of the industrial products company's stock valued at $30,401,000 after purchasing an additional 173,492 shares during the last quarter. Thompson Investment Management Inc. increased its position in shares of Kornit Digital by 1.8% during the 2nd quarter. Thompson Investment Management Inc. now owns 293,007 shares of the industrial products company's stock valued at $5,834,000 after purchasing an additional 5,208 shares during the last quarter. Blair William & Co. IL increased its position in shares of Kornit Digital by 19.4% during the 2nd quarter. Blair William & Co. IL now owns 519,574 shares of the industrial products company's stock valued at $10,345,000 after purchasing an additional 84,593 shares during the last quarter. Finally, Fortitude Family Office LLC bought a new position in shares of Kornit Digital during the 2nd quarter valued at about $99,000. 92.76% of the stock is currently owned by institutional investors.

Kornit Digital Stock Performance

The stock has a market capitalization of $635.57 million, a P/E ratio of -56.76 and a beta of 1.90. The firm has a 50-day moving average price of $20.17 and a 200 day moving average price of $21.53.

Kornit Digital (NASDAQ:KRNT - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The industrial products company reported $0.03 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.02 by $0.01. Kornit Digital had a negative return on equity of 0.74% and a negative net margin of 5.43%. The business had revenue of $49.75 million for the quarter, compared to analyst estimates of $52.07 million. During the same period last year, the company earned $0.02 EPS. Kornit Digital's revenue for the quarter was up 2.5% compared to the same quarter last year. On average, equities analysts anticipate that Kornit Digital Ltd. will post -0.2 earnings per share for the current fiscal year.

About Kornit Digital

Kornit Digital Ltd. develops, designs, and markets digital printing solutions for the fashion, apparel, and home decor segments of printed textile industry in the United States, Europe, the Middle East, Africa, the Asia Pacific, and internationally. Its solutions include digital printing systems, ink and other consumables, associated software, and value-added services.