Daktronics (NASDAQ:DAKT) Stock Crosses Below 200 Day Moving Average - Time to Sell?

Key Points

• Technical weakness: Daktronics shares fell below their 200-day moving average of $20.47, trading as low as $19.64 and last changing hands at $19.79.
• Analysts remain bullish overall: The stock has an average “Buy” rating and a consensus price target of $31.00, despite mixed individual ratings.
• Solid recent results and institutional ownership: Daktronics exceeded quarterly EPS and revenue estimates, reporting $0.40 EPS on $234.57 million in revenue, while institutions own 61.69% of the company.

Shares of Daktronics, Inc. (NASDAQ:DAKT - Get Free Report) crossed below its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $20.47 and traded as low as $19.64. Daktronics shares last traded at $19.79, with a volume of 640,923 shares changing hands.

Analysts Set New Price Targets

A number of equities analysts recently commented on DAKT shares. Zacks Research upgraded Daktronics from a "hold" rating to a "strong-buy" rating in a research report on Monday, October 5th. Weiss Ratings reiterated a "hold (c+)" rating on shares of Daktronics in a report on Tuesday, September 22nd. Craig Hallum reiterated a "buy" rating and set a $33.00 price target on shares of Daktronics in a research note on Thursday, September 3rd. Roth Capital increased their price objective on Daktronics from $26.00 to $29.00 and gave the company a "buy" rating in a research note on Thursday, July 2nd. Finally, Wall Street Zen raised shares of Daktronics from a "hold" rating to a "buy" rating in a report on Saturday, September 26th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Daktronics currently has an average rating of "Buy" and a consensus price target of $31.00.

Daktronics Stock Performance

The company has a market cap of $951.70 million, a PE ratio of 20.19, a PEG ratio of 0.64 and a beta of 1.68. The stock has a 50 day simple moving average of $18.57 and a two-hundred day simple moving average of $20.47. The company has a debt-to-equity ratio of 0.17, a current ratio of 2.17 and a quick ratio of 1.66.

Daktronics (NASDAQ:DAKT - Get Free Report) last issued its quarterly earnings data on Wednesday, September 2nd. The technology company reported $0.40 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.35 by $0.05. Daktronics had a net margin of 5.66% and a return on equity of 18.05%. The company had revenue of $234.57 million for the quarter, compared to the consensus estimate of $230.27 million. During the same period last year, the firm posted $0.33 EPS. Equities analysts predict that Daktronics, Inc. will post 1.28 EPS for the current year.

Institutional Trading of Daktronics

Hedge funds and other institutional investors have recently made changes to their positions in the company. Sterling Capital Management LLC raised its holdings in Daktronics by 949.3% during the third quarter. Sterling Capital Management LLC now owns 1,469 shares of the technology company's stock worth $26,000 after purchasing an additional 1,329 shares in the last quarter. Inspire Investing LLC boosted its stake in shares of Daktronics by 6.4% in the third quarter. Inspire Investing LLC now owns 36,790 shares of the technology company's stock valued at $640,000 after buying an additional 2,208 shares in the last quarter. SummerHaven Investment Management LLC boosted its position in shares of Daktronics by 20.1% during the 3rd quarter. SummerHaven Investment Management LLC now owns 55,479 shares of the technology company's stock worth $965,000 after purchasing an additional 9,295 shares in the last quarter. IFP Advisors Inc grew its position in Daktronics by 231.6% during the second quarter. IFP Advisors Inc now owns 3,270 shares of the technology company's stock worth $64,000 after buying an additional 2,284 shares during the period. Finally, Corient Private Wealth LP grew its holdings in shares of Daktronics by 38.4% in the 2nd quarter. Corient Private Wealth LP now owns 18,237 shares of the technology company's stock worth $357,000 after acquiring an additional 5,063 shares during the period. Hedge funds and other institutional investors own 61.69% of the company's stock.

About Daktronics

Daktronics, Inc designs and manufactures electronic display and audiovisual communication systems. Its products include large-format LED video displays, digital scoreboards, message centers, programmable display systems, control systems and related software. The company also provides installation, maintenance, content management and other support services for its display solutions.

Its products are used in sports venues, schools and universities, commercial properties, retail locations, transportation facilities and public spaces.

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