Diebold Nixdorf (NYSE:DBD) Reaches New 52-Week Low Following Analyst Downgrade

Key Points

• Diebold Nixdorf shares fell to a new 52-week low after Weiss Ratings downgraded the stock from “buy” to “hold,” with shares trading as low as $53.81 versus a prior close of $59.14.
• Despite the downgrade, analyst sentiment remains generally positive: the stock has an average “Moderate Buy” rating and a consensus price target of $95, supported by buy ratings from DA Davidson and Wedbush.
• The company exceeded quarterly expectations with $1.34 in EPS and $990.9 million in revenue, while also authorizing a $250 million share-repurchase plan covering up to 12.7% of outstanding shares.

Diebold Nixdorf, Incorporated (NYSE:DBD - Get Free Report)'s stock price reached a new 52-week low during trading on Friday after Weiss Ratings downgraded the stock from a buy (b-) rating to a hold (c) rating. The stock traded as low as $53.81 and last traded at $52.88, with a volume of 139,528 shares changing hands. The stock had previously closed at $59.14.

A number of other research firms have also recently commented on DBD. DA Davidson reiterated a "buy" rating and set a $100.00 target price on shares of Diebold Nixdorf in a research report on Tuesday. Wall Street Zen cut shares of Diebold Nixdorf from a "strong-buy" rating to a "hold" rating in a research report on Saturday, August 1st. Finally, Wedbush decreased their price objective on shares of Diebold Nixdorf from $100.00 to $90.00 and set an "outperform" rating for the company in a report on Thursday. Two research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $95.00.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of DBD. Dimensional Fund Advisors LP increased its position in Diebold Nixdorf by 16.8% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,148,962 shares of the technology company's stock worth $86,672,000 after purchasing an additional 165,324 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its position in shares of Diebold Nixdorf by 20.6% during the first quarter. Arrowstreet Capital Limited Partnership now owns 519,201 shares of the technology company's stock valued at $39,169,000 after purchasing an additional 88,534 shares in the last quarter. Skylands Capital LLC raised its position in Diebold Nixdorf by 13.3% in the third quarter. Skylands Capital LLC now owns 531,510 shares of the technology company's stock worth $32,539,000 after acquiring an additional 62,325 shares during the period. Bank of New York Mellon Corp purchased a new stake in Diebold Nixdorf in the 2nd quarter worth about $14,740,000. Finally, Hennessy Advisors Inc. purchased a new position in Diebold Nixdorf during the 2nd quarter valued at about $10,857,000. 97.04% of the stock is owned by institutional investors and hedge funds.

Diebold Nixdorf Price Performance

The firm has a market capitalization of $1.83 billion, a PE ratio of 25.13 and a beta of 1.19. The business's 50 day moving average is $65.43 and its two-hundred day moving average is $74.98. The company has a debt-to-equity ratio of 1.01, a current ratio of 1.27 and a quick ratio of 0.83.

Diebold Nixdorf (NYSE:DBD - Get Free Report) last announced its earnings results on Wednesday, October 28th. The technology company reported $1.34 EPS for the quarter, beating analysts' consensus estimates of $1.31 by $0.03. Diebold Nixdorf had a return on equity of 21.53% and a net margin of 1.96%. The company had revenue of $990.90 million during the quarter, compared to the consensus estimate of $971.70 million. As a group, research analysts anticipate that Diebold Nixdorf, Incorporated will post 4.68 EPS for the current year.

Diebold Nixdorf announced that its Board of Directors has initiated a share repurchase plan on Wednesday, October 28th that authorizes the company to repurchase $250 million in shares. This buyback authorization authorizes the technology company to reacquire up to 12.7% of its stock through open market purchases. Share buyback plans are usually an indication that the company's management believes its shares are undervalued.

Diebold Nixdorf Company Profile

Diebold Nixdorf, Incorporated provides technology, software and services for the banking and retail industries. Its portfolio includes automated teller machines (ATMs), cash-management systems, self-service kiosks, branch-automation solutions and software designed to support transactions, payments and customer interactions.

For retailers, the company offers point-of-sale systems, self-checkout solutions, payment technologies, software and related services. Diebold Nixdorf also provides professional services, maintenance, monitoring and managed services to help financial institutions and retailers operate and modernize their in-person and self-service channels.

The company traces its history to Diebold, founded in 1859, and Wincor Nixdorf, which was established in Germany in 1952.

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