Daktronics, Inc. (NASDAQ: DAKT) experienced a significant decline in its stock price, dropping by 6% on Wednesday. The stock hit a low of $17.80 before closing at $17.35, a stark contrast to its previous closing price of $18.45. Trading volume was markedly lower, with approximately 57,888 shares changing hands, representing an 87% drop from the average session volume of 441,512 shares.
Analyst Ratings Shift for Daktronics
Recent reports from equities analysts indicate a shift in sentiment regarding Daktronics’ stock. On November 10, 2023, Zacks Research downgraded the company from a “strong-buy” rating to a “hold” rating. Conversely, Wall Street Zen upgraded the stock from a “buy” to a “strong-buy” rating just a month earlier on September 14, 2023. Weiss Ratings also reaffirmed a “hold (C-)” rating on Daktronics. Currently, one analyst has assigned a Buy rating while two others suggest holding the stock. According to data from MarketBeat.com, the consensus rating for Daktronics remains a “Hold” with a price target of $26.00.
Financial Performance and Insider Sales
Daktronics released its quarterly earnings data on September 10, 2023, reporting earnings per share (EPS) of $0.33, exceeding analysts’ expectations of $0.24 by $0.09. The company posted a net margin of 1.51% and a return on equity of 14.64%. Revenue for the quarter reached $218.97 million, surpassing predictions of $196.90 million. Analysts forecast Daktronics will achieve an EPS of $0.96 for the current fiscal year.
In related news, significant insider trading has occurred recently. Director John Patrick Friel sold 13,479 shares on September 15, 2023, at an average price of $23.58, totaling approximately $317,834.82. This sale reduced his holdings by 15.39%, leaving him with 74,094 shares valued at $1,747,136.52. Additionally, Vice President Carla S. Gatzke sold 9,944 shares on September 17, 2023, for around $229,606.96, decreasing her stake by 1.36%.
Institutional Investor Activity
Institutional investors have also been active in adjusting their positions in Daktronics. Wealth Enhancement Advisory Services LLC increased its stake by 0.9% during the third quarter, owning 77,264 shares valued at $1.5 million. Osaic Holdings Inc. raised its position by 3.2%, holding 23,638 shares worth $357,000, while Verition Fund Management LLC expanded its stake by 3.3% to 27,983 shares, valued at $585,000. Overall, institutional and hedge fund ownership now accounts for 61.69% of Daktronics’ stock.
Daktronics, Inc., headquartered in the United States, designs, manufactures, and sells electronic scoreboards and programmable display systems for various applications, including sports, commercial, and transportation. The company operates across multiple segments, including Commercial, Live Events, High School Park and Recreation, Transportation, and International markets.
Investors will be keen to monitor how the stock performs in light of the recent analyst ratings and insider trading, as well as the broader market dynamics impacting the technology sector.
