Kornit Digital (NASDAQ:KRNT) Rating Lowered to “Sell” at Wall Street Zen

Kornit Digital (NASDAQ:KRNT) was downgraded by research analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a report issued on Saturday.

Several other equities research analysts also recently commented on KRNT. Cantor Fitzgerald cut their target price on shares of Kornit Digital from $28.50 to $26.00 and set an “overweight” rating on the stock in a research report on Thursday, November 6th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Kornit Digital in a research note on Friday, December 26th. Barclays cut their price target on shares of Kornit Digital from $22.00 to $18.00 and set an “equal weight” rating on the stock in a report on Thursday, November 6th. Morgan Stanley restated a “positive” rating and issued a $17.00 price objective on shares of Kornit Digital in a report on Wednesday. Finally, Needham & Company LLC reaffirmed a “buy” rating and set a $20.00 target price on shares of Kornit Digital in a research report on Wednesday, February 11th. Three investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $20.25.

Kornit Digital Stock Performance

Shares of KRNT opened at $15.97 on Friday. Kornit Digital has a 52 week low of $11.93 and a 52 week high of $29.12. The stock has a market capitalization of $715.30 million, a price-to-earnings ratio of -51.51 and a beta of 1.87. The stock has a fifty day moving average of $14.29 and a 200-day moving average of $14.31.

Kornit Digital (NASDAQ:KRNT) last posted its earnings results on Wednesday, February 11th. The industrial products company reported $0.18 EPS for the quarter, beating the consensus estimate of $0.14 by $0.04. Kornit Digital had a negative return on equity of 1.07% and a negative net margin of 6.49%.The firm had revenue of $58.86 million during the quarter, compared to the consensus estimate of $58.16 million. During the same period last year, the company earned $0.18 earnings per share. The business’s quarterly revenue was down 3.0% on a year-over-year basis. As a group, equities analysts forecast that Kornit Digital will post -0.2 EPS for the current year.

Kornit Digital announced that its Board of Directors has approved a share buyback plan on Monday, November 17th that permits the company to buyback $100.00 million in outstanding shares. This buyback authorization permits the industrial products company to buy up to 17.2% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s management believes its stock is undervalued.

Institutional Investors Weigh In On Kornit Digital

Several large investors have recently added to or reduced their stakes in the business. Medina Value Partners LLC acquired a new position in Kornit Digital in the third quarter valued at approximately $12,732,000. Morgan Stanley boosted its stake in Kornit Digital by 26.5% during the fourth quarter. Morgan Stanley now owns 3,998,548 shares of the industrial products company’s stock worth $57,499,000 after acquiring an additional 838,814 shares in the last quarter. Dudley & Shanley Inc. grew its holdings in Kornit Digital by 97.5% in the third quarter. Dudley & Shanley Inc. now owns 1,258,895 shares of the industrial products company’s stock worth $16,995,000 after purchasing an additional 621,595 shares during the period. Hood River Capital Management LLC increased its stake in Kornit Digital by 39.1% in the second quarter. Hood River Capital Management LLC now owns 2,182,569 shares of the industrial products company’s stock valued at $43,455,000 after purchasing an additional 613,070 shares in the last quarter. Finally, Baillie Gifford & Co. raised its holdings in shares of Kornit Digital by 61.7% during the fourth quarter. Baillie Gifford & Co. now owns 1,565,079 shares of the industrial products company’s stock valued at $22,506,000 after purchasing an additional 597,128 shares during the period. Institutional investors and hedge funds own 92.76% of the company’s stock.

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.