Donnelley Financial Solutions (NYSE:DFIN) Shares Gap Up - Here's Why

Key Points

• Donnelley Financial Solutions shares opened sharply higher, rising from a prior close of $49.28 to $51.69 and last trading around $51.89.
• Analysts maintain a generally positive outlook, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $61.00.
• The company recently exceeded quarterly expectations, reporting $1.76 in earnings per share versus a $1.63 estimate and revenue of $224.2 million; institutional investors own 93.84% of the stock.

Donnelley Financial Solutions (NYSE:DFIN - Get Free Report) gapped up prior to trading on Friday. The stock had previously closed at $49.28, but opened at $51.69. Donnelley Financial Solutions shares last traded at $51.8910, with a volume of 7,412 shares.

Wall Street Analyst Weigh In

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

Donnelley Financial Solutions Trading Up 0.9%

The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.33 and a current ratio of 1.33. The firm has a fifty day moving average of $48.48 and a 200-day moving average of $46.01. The firm has a market cap of $1.27 billion, a P/E ratio of 35.71 and a beta of 0.75.

Donnelley Financial Solutions (NYSE:DFIN - Get Free Report) last announced its earnings results on Thursday, July 30th. The company reported $1.76 EPS for the quarter, topping the consensus estimate of $1.63 by $0.13. The firm had revenue of $224.20 million for the quarter, compared to analysts' expectations of $221.40 million. Donnelley Financial Solutions had a return on equity of 25.82% and a net margin of 4.53%. The firm's quarterly revenue was up 2.8% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.49 earnings per share. Equities research analysts forecast that Donnelley Financial Solutions will post 4.41 earnings per share for the current year.

Insider Buying and Selling at Donnelley Financial Solutions

In other Donnelley Financial Solutions news, Director Joseph Leo Binz purchased 5,780 shares of the firm's stock in a transaction on Wednesday, September 2nd. The shares were purchased at an average price of $47.75 per share, for a total transaction of $275,995.00. Following the completion of the purchase, the director directly owned 24,704 shares of the company's stock, valued at approximately $1,179,616. This represents a 30.54% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. 5.20% of the stock is owned by company insiders.

Institutional Investors Weigh In On Donnelley Financial Solutions

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Fortitude Family Office LLC bought a new position in Donnelley Financial Solutions during the 3rd quarter worth about $35,000. NorthCrest Asset Manangement LLC grew its stake in Donnelley Financial Solutions by 5.2% during the third quarter. NorthCrest Asset Manangement LLC now owns 10,640 shares of the company's stock worth $534,000 after buying an additional 528 shares in the last quarter. Farther Finance Advisors LLC raised its holdings in shares of Donnelley Financial Solutions by 330.5% during the 3rd quarter. Farther Finance Advisors LLC now owns 650 shares of the company's stock worth $31,000 after buying an additional 499 shares in the last quarter. WINTON GROUP Ltd bought a new position in shares of Donnelley Financial Solutions in the second quarter worth about $2,813,000. Finally, Engineers Gate Manager LP boosted its holdings in shares of Donnelley Financial Solutions by 105.7% during the 2nd quarter. Engineers Gate Manager LP now owns 27,247 shares of the company's stock valued at $1,143,000 after acquiring an additional 14,003 shares in the last quarter. Institutional investors own 93.84% of the company's stock.

About Donnelley Financial Solutions

Donnelley Financial Solutions, Inc NYSE: DFIN provides software and technology-enabled services that support financial reporting, regulatory compliance, capital markets transactions and investment communications. The company serves public companies, private companies, investment firms and other organizations that need to prepare, manage and distribute business-critical financial information.

Its offerings include regulatory filing and reporting solutions, financial disclosure management software, data rooms for mergers and acquisitions, and tools for managing shareholder and investment-company communications.

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