Donnelley Financial Solutions (NYSE:DFIN) Hits New 12-Month High - Should You Buy?

Key Points

• Donnelley Financial Solutions hit a new 52-week high, trading around $70.38 after a prior close of $68.14.
• Analysts’ average rating is Moderate Buy, with an average price target of $74; recent targets include $76 from DA Davidson and $72 from Needham.
• Quarterly results beat expectations: EPS was $1.07 versus an $0.84 consensus, and revenue of $185 million exceeded estimates and rose 5.5% year over year.

Donnelley Financial Solutions (NYSE:DFIN - Get Free Report)'s share price reached a new 52-week high on Wednesday. The stock traded as high as $70.03 and last traded at $70.3750, with a volume of 10,567 shares trading hands. The stock had previously closed at $68.14.

Analysts Set New Price Targets

A number of brokerages recently issued reports on DFIN. DA Davidson increased their price objective on Donnelley Financial Solutions from $62.00 to $76.00 and gave the stock a "buy" rating in a research note on Monday. Weiss Ratings raised Donnelley Financial Solutions from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday, September 4th. Needham & Company LLC upped their target price on Donnelley Financial Solutions from $60.00 to $72.00 and gave the stock a "buy" rating in a report on Friday, October 30th. Zacks Research cut Donnelley Financial Solutions from a "strong-buy" rating to a "hold" rating in a report on Tuesday, July 28th. Finally, Wall Street Zen raised Donnelley Financial Solutions from a "buy" rating to a "strong-buy" rating in a research report on Saturday. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Donnelley Financial Solutions currently has an average rating of "Moderate Buy" and an average target price of $74.00.

Donnelley Financial Solutions Price Performance

The firm has a 50-day simple moving average of $50.82 and a 200-day simple moving average of $47.50. The firm has a market cap of $1.74 billion, a P/E ratio of 18.89 and a beta of 0.65. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 0.30.

Donnelley Financial Solutions (NYSE:DFIN - Get Free Report) last released its quarterly earnings results on Thursday, October 29th. The company reported $1.07 EPS for the quarter, topping the consensus estimate of $0.84 by $0.23. The firm had revenue of $185.00 million during the quarter, compared to analyst estimates of $179.90 million. Donnelley Financial Solutions had a return on equity of 26.70% and a net margin of 12.37%. The business's revenue for the quarter was up 5.5% compared to the same quarter last year. During the same period in the previous year, the company posted $0.86 EPS. As a group, analysts forecast that Donnelley Financial Solutions will post 4.41 EPS for the current year.

Insider Buying and Selling

In other news, Director Joseph Leo Binz purchased 15,000 shares of the firm's stock in a transaction on Tuesday, September 1st. The stock was acquired at an average cost of $48.27 per share, with a total value of $724,050.00. Following the completion of the transaction, the director owned 18,924 shares in the company, valued at $913,461.48. This represents a 382.26% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Corporate insiders own 5.20% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. BlackRock Inc. acquired a new stake in shares of Donnelley Financial Solutions in the 2nd quarter worth $165,182,000. Alberta Investment Management Corp acquired a new position in Donnelley Financial Solutions during the 2nd quarter valued at about $44,157,000. Rice Hall James & Associates LLC increased its position in Donnelley Financial Solutions by 1.8% during the 1st quarter. Rice Hall James & Associates LLC now owns 780,037 shares of the company's stock valued at $36,771,000 after buying an additional 14,098 shares in the last quarter. William Blair Investment Management LLC acquired a new position in Donnelley Financial Solutions during the 2nd quarter valued at about $26,510,000. Finally, Algert Global LLC raised its stake in Donnelley Financial Solutions by 90.9% in the second quarter. Algert Global LLC now owns 529,983 shares of the company's stock valued at $22,233,000 after buying an additional 252,383 shares during the last quarter. Institutional investors own 93.84% of the company's stock.

Donnelley Financial Solutions Company Profile

Donnelley Financial Solutions, Inc NYSE: DFIN provides software, technology-enabled services and communications solutions that help public and private companies, investment firms, financial institutions and other organizations meet regulatory, compliance and reporting requirements.

The company's offerings include cloud-based disclosure and compliance software, filing and reporting services, regulatory data management, virtual data rooms and solutions for capital markets transactions.

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