Donnelley Financial Solutions (NYSE:DFIN) Reaches New 52-Week High on Strong Earnings

Key Points

• Donnelley Financial Solutions shares reached a new 52-week high after quarterly EPS of $1.07 exceeded analyst expectations of $0.84. Revenue rose 5.5% year over year to $185 million, also topping estimates.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $61.00, although some firms recently downgraded their ratings.
• Institutional investors own 93.84% of the company, while insider ownership stands at 5.20%; a company director recently increased his position by purchasing 15,000 shares.

Donnelley Financial Solutions (NYSE:DFIN - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $61.06 and last traded at $59.0860, with a volume of 32,968 shares trading hands. The stock had previously closed at $53.12.

The company reported $1.07 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.84 by $0.23. Donnelley Financial Solutions had a net margin of 4.53% and a return on equity of 25.82%. The business had revenue of $185.00 million during the quarter, compared to the consensus estimate of $179.90 million. During the same quarter last year, the firm posted $0.86 EPS. The business's revenue was up 5.5% compared to the same quarter last year.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on DFIN shares. Wall Street Zen cut Donnelley Financial Solutions from a "strong-buy" rating to a "buy" rating in a report on Sunday, October 11th. Zacks Research downgraded Donnelley Financial Solutions from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, July 28th. Needham & Company LLC reissued a "buy" rating and issued a $60.00 target price on shares of Donnelley Financial Solutions in a report on Monday, September 21st. Finally, Weiss Ratings upgraded Donnelley Financial Solutions from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday, September 4th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $61.00.

Insider Buying and Selling at Donnelley Financial Solutions

In related news, Director Joseph Leo Binz acquired 15,000 shares of the business's stock in a transaction that occurred on Tuesday, September 1st. The stock was purchased at an average cost of $48.27 per share, for a total transaction of $724,050.00. Following the transaction, the director directly owned 18,924 shares of the company's stock, valued at approximately $913,461.48. This trade represents a 382.26% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 5.20% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Donnelley Financial Solutions

A number of large investors have recently bought and sold shares of DFIN. BlackRock Inc. acquired a new stake in shares of Donnelley Financial Solutions during the second quarter worth $165,182,000. Alberta Investment Management Corp purchased a new stake in shares of Donnelley Financial Solutions in the second quarter valued at $44,157,000. Rice Hall James & Associates LLC purchased a new stake in shares of Donnelley Financial Solutions in the second quarter valued at $32,516,000. William Blair Investment Management LLC acquired a new position in Donnelley Financial Solutions in the second quarter valued at $26,510,000. Finally, Algert Global LLC increased 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 purchasing an additional 252,383 shares during the last quarter. Institutional investors and hedge funds own 93.84% of the company's stock.

Donnelley Financial Solutions Price Performance

The company has a 50-day moving average of $49.42 and a two-hundred day moving average of $47.23. The stock has a market capitalization of $1.47 billion, a PE ratio of 40.80 and a beta of 0.75. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.33 and a quick ratio of 1.33.

About Donnelley Financial Solutions

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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