Kornit Digital (NASDAQ:KRNT) Shares Cross Below Fifty Day Moving Average - Here's What Happened

Key Points

• Kornit Digital shares briefly fell below their 50-day moving average of $16.69, trading as low as $16.65 before last changing hands at $17.48.
• Analyst sentiment remains mixed, with two Buy, three Hold and one Sell rating; the consensus rating is Hold with a $21.50 price target.
• The company exceeded quarterly expectations, reporting $0.04 in EPS and $55.32 million in revenue, up 11.1% year over year, although it continues to report negative net margins and analysts expect a full-year loss.

Kornit Digital Ltd. (NASDAQ:KRNT - Get Free Report) passed below its 50 day moving average during trading on Monday. The stock has a 50 day moving average of $16.69 and traded as low as $16.65. Kornit Digital shares last traded at $17.48, with a volume of 221,693 shares traded.

Wall Street Analyst Weigh In

Several research firms recently commented on KRNT. Morgan Stanley lifted their target price on Kornit Digital from $18.00 to $19.00 and gave the stock an "equal weight" rating in a report on Thursday, August 13th. Weiss Ratings raised Kornit Digital from a "sell (e+)" rating to a "sell (d-)" rating in a report on Friday, October 2nd. Zacks Research raised shares of Kornit Digital from a "strong sell" rating to a "hold" rating in a report on Monday, August 24th. Finally, Needham & Company LLC raised their price target on shares of Kornit Digital from $22.00 to $23.00 and gave the company a "buy" rating in a research report on Wednesday, August 12th. Two analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Kornit Digital currently has an average rating of "Hold" and a consensus price target of $21.50.

Kornit Digital Stock Performance

The firm has a 50 day moving average price of $16.69 and a two-hundred day moving average price of $16.07. The company has a market cap of $751.12 million, a P/E ratio of -36.42 and a beta of 1.85.

Kornit Digital (NASDAQ:KRNT - Get Free Report) last announced its quarterly earnings results on Wednesday, August 12th. The industrial products company reported $0.04 EPS for the quarter, beating analysts' consensus estimates of ($0.01) by $0.05. Kornit Digital had a negative net margin of 9.42% and a negative return on equity of 1.00%. The company had revenue of $55.32 million for the quarter, compared to analysts' expectations of $52.80 million. During the same period in the prior year, the company posted $0.03 EPS. Kornit Digital's revenue was up 11.1% compared to the same quarter last year. On average, sell-side analysts predict that Kornit Digital Ltd. will post -0.23 EPS for the current fiscal year.

Insider Transactions at Kornit Digital

In other news, CTO Yaaqov Mann sold 39,958 shares of the business's stock in a transaction on Monday, October 5th. The shares were sold at an average price of $17.66, for a total transaction of $705,658.28. Following the completion of the transaction, the chief technology officer directly owned 1,195 shares in the company, valued at $21,103.70. The trade was a 97.10% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.21% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Kornit Digital

A number of institutional investors have recently made changes to their positions in KRNT. Tidal Investments LLC boosted its holdings in shares of Kornit Digital by 78.3% during the second quarter. Tidal Investments LLC now owns 68,838 shares of the industrial products company's stock worth $1,119,000 after purchasing an additional 30,233 shares during the period. Engineers Gate Manager LP purchased a new position in Kornit Digital during the 2nd quarter valued at $300,000. Lone Peak Global Investors LLC raised its holdings in Kornit Digital by 2.6% in the 2nd quarter. Lone Peak Global Investors LLC now owns 36,069 shares of the industrial products company's stock worth $586,000 after purchasing an additional 908 shares in the last quarter. Public Employees Retirement System of Ohio bought a new stake in shares of Kornit Digital during the 2nd quarter valued at about $224,000. Finally, American Capital Management Inc. purchased a new position in shares of Kornit Digital during the 2nd quarter worth approximately $4,598,000. Institutional investors own 92.76% of the company's stock.

About Kornit Digital

Kornit Digital Ltd. NASDAQ: KRNT develops and manufactures digital printing systems, inks, software and related solutions for the textile, apparel and other printed-product markets. Its technologies are designed to enable on-demand, short-run and customized production, helping manufacturers and brands reduce reliance on traditional screen-printing and other analog processes.

The company's product portfolio includes direct-to-garment, direct-to-fabric and digital decoration systems, as well as proprietary inks, workflow software and technical services.

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