Daktronics (NASDAQ:DAKT) Shares Gap Up on Strong Earnings

Daktronics, Inc. (NASDAQ:DAKT)’s stock price gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $17.97, but opened at $19.50. Daktronics shares last traded at $20.6470, with a volume of 319,752 shares trading hands.

The technology company reported $0.35 EPS for the quarter, topping analysts’ consensus estimates of $0.27 by $0.08. Daktronics had a net margin of 1.51% and a return on equity of 14.64%. The firm had revenue of $229.25 million for the quarter, compared to the consensus estimate of $213.93 million. During the same quarter in the previous year, the firm earned $0.27 earnings per share.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on the company. Weiss Ratings restated a “hold (c-)” rating on shares of Daktronics in a report on Monday. Wall Street Zen upgraded Daktronics from a “buy” rating to a “strong-buy” rating in a research report on Sunday, September 14th. Finally, Zacks Research lowered Daktronics from a “strong-buy” rating to a “hold” rating in a report on Monday, November 10th. One research analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $26.00.

Insider Buying and Selling

In related news, VP Carla S. Gatzke sold 9,944 shares of the company’s stock in a transaction that occurred on Wednesday, September 17th. The stock was sold at an average price of $23.09, for a total value of $229,606.96. Following the sale, the vice president owned 721,036 shares of the company’s stock, valued at approximately $16,648,721.24. This represents a 1.36% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director John Patrick Friel sold 13,479 shares of the firm’s stock in a transaction on Monday, September 15th. The stock was sold at an average price of $23.58, for a total value of $317,834.82. Following the transaction, the director directly owned 74,094 shares of the company’s stock, valued at $1,747,136.52. The trade was a 15.39% decrease in their position. The disclosure for this sale is available in the SEC filing. 5.30% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Alta Fox Capital Management LLC grew its holdings in shares of Daktronics by 94.3% during the first quarter. Alta Fox Capital Management LLC now owns 5,973,599 shares of the technology company’s stock worth $72,758,000 after buying an additional 2,899,263 shares in the last quarter. Breach Inlet Capital Management LLC lifted its stake in shares of Daktronics by 82.6% during the first quarter. Breach Inlet Capital Management LLC now owns 1,656,758 shares of the technology company’s stock valued at $20,179,000 after buying an additional 749,444 shares during the period. Duquesne Family Office LLC boosted its position in Daktronics by 16.9% during the first quarter. Duquesne Family Office LLC now owns 3,067,625 shares of the technology company’s stock worth $37,364,000 after acquiring an additional 442,520 shares during the last quarter. CSM Advisors LLC acquired a new stake in Daktronics during the second quarter worth approximately $6,242,000. Finally, Invesco Ltd. grew its stake in Daktronics by 399.2% in the 2nd quarter. Invesco Ltd. now owns 510,243 shares of the technology company’s stock worth $7,715,000 after acquiring an additional 408,037 shares during the period. 61.69% of the stock is currently owned by hedge funds and other institutional investors.

Daktronics Price Performance

The company has a market capitalization of $1.01 billion, a price-to-earnings ratio of 29.95, a P/E/G ratio of 0.55 and a beta of 1.72. The company has a fifty day simple moving average of $19.09 and a two-hundred day simple moving average of $17.73. The company has a debt-to-equity ratio of 0.19, a quick ratio of 1.54 and a current ratio of 2.07.

About Daktronics

Daktronics, Inc designs, manufactures, and sells electronic scoreboards, programmable display systems and large screen video displays for sporting, commercial, and transportation applications in the United States and internationally. It operates through Commercial, Live Events, High School Park and Recreation, Transportation, and International segments.