Kornit Digital (NASDAQ:KRNT) Shares Gap Up on Better-Than-Expected Earnings

Kornit Digital Ltd. (NASDAQ:KRNT)’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 $14.24, but opened at $15.52. Kornit Digital shares last traded at $16.6290, with a volume of 163,560 shares.

The industrial products company reported $0.18 EPS for the quarter, topping analysts’ consensus estimates of $0.14 by $0.04. The firm had revenue of $58.86 million for the quarter, compared to the consensus estimate of $58.16 million. Kornit Digital had a negative return on equity of 1.07% and a negative net margin of 6.49%.The firm’s revenue was down 3.0% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.18 earnings per share.

Kornit Digital declared that its board has authorized a stock buyback plan on Monday, November 17th that authorizes the company to buyback $100.00 million in outstanding shares. This buyback authorization authorizes the industrial products company to repurchase up to 17.2% of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s board of directors believes its shares are undervalued.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on the company. Barclays cut their price objective on Kornit Digital from $22.00 to $18.00 and set an “equal weight” rating on the stock in a research note on Thursday, November 6th. Morgan Stanley restated a “positive” rating and issued a $17.00 price objective on shares of Kornit Digital in a research note on Wednesday. Needham & Company LLC reaffirmed a “buy” rating and set a $20.00 price objective on shares of Kornit Digital in a report on Wednesday. Weiss Ratings reiterated a “sell (d-)” rating on shares of Kornit Digital in a report on Friday, December 26th. Finally, Cantor Fitzgerald decreased their price target on shares of Kornit Digital from $28.50 to $26.00 and set an “overweight” rating for the company in a report on Thursday, November 6th. Three analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $20.25.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of KRNT. Raymond James Financial Inc. bought a new position in shares of Kornit Digital during the 2nd quarter worth about $31,000. State of Tennessee Department of Treasury bought a new stake in Kornit Digital in the second quarter valued at about $35,000. CIBC Private Wealth Group LLC raised its position in Kornit Digital by 1,359.8% in the third quarter. CIBC Private Wealth Group LLC now owns 1,927 shares of the industrial products company’s stock worth $26,000 after purchasing an additional 1,795 shares in the last quarter. Johnson Financial Group Inc. bought a new position in Kornit Digital during the third quarter worth about $27,000. Finally, Fortitude Family Office LLC boosted its holdings in Kornit Digital by 64.2% during the third quarter. Fortitude Family Office LLC now owns 8,164 shares of the industrial products company’s stock valued at $110,000 after purchasing an additional 3,191 shares in the last quarter. 92.76% of the stock is owned by institutional investors.

Kornit Digital Stock Down 1.7%

The firm has a 50 day moving average price of $14.29 and a two-hundred day moving average price of $14.40.

About Kornit Digital

Kornit Digital Ltd. (NASDAQ: KRNT) is a global technology company specializing in digital textile printing solutions. Headquartered in Rosh Ha’Ayin, Israel, Kornit develops and manufactures an integrated ecosystem of industrial inkjet printers, proprietary NeoPigment inks and pretreatment systems. Its product portfolio addresses a range of applications including direct-to-garment, direct-to-fabric, digital embellishment and hybrid manufacturing, enabling businesses to produce custom apparel, sportswear, fashion and home textiles on demand.

The company’s flagship offerings include the Avalanche and Atlas series for high-volume production, as well as the Storm and Helix lines designed for mid-to-large scale operations.