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

Kornit Digital Ltd. (NASDAQ:KRNT)’s share price gapped up before the market opened 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 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.14 by $0.04. Kornit Digital had a negative net margin of 6.49% and a negative return on equity of 1.07%. The firm had revenue of $58.86 million during the quarter, compared to analyst estimates of $58.16 million. During the same quarter in the prior year, the firm posted $0.18 earnings per share. Kornit Digital’s quarterly revenue was down 3.0% on a year-over-year basis.

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

Wall Street Analyst Weigh In

Several analysts recently issued reports on the stock. Barclays reduced their price objective 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. Weiss Ratings reissued a “sell (d-)” rating on shares of Kornit Digital in a research note on Friday, December 26th. Needham & Company LLC restated a “buy” rating and issued a $20.00 price objective on shares of Kornit Digital in a report on Wednesday. Cantor Fitzgerald lowered their price objective on shares of Kornit Digital from $28.50 to $26.00 and set an “overweight” rating for the company in a research report on Thursday, November 6th. Finally, Morgan Stanley reissued a “positive” rating and issued a $17.00 target price on shares of Kornit Digital in a research report on Wednesday. Three equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $20.25.

Hedge Funds Weigh In On Kornit Digital

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Van ECK Associates Corp raised its stake in shares of Kornit Digital by 6.9% in the fourth quarter. Van ECK Associates Corp now owns 12,742 shares of the industrial products company’s stock valued at $183,000 after acquiring an additional 820 shares in the last quarter. Raymond James Financial Inc. acquired a new position in Kornit Digital during the 2nd quarter worth $31,000. State of Tennessee Department of Treasury purchased a new stake in Kornit Digital during the 2nd quarter worth about $35,000. CIBC Private Wealth Group LLC raised its position in Kornit Digital by 1,359.8% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 1,927 shares of the industrial products company’s stock valued at $26,000 after purchasing an additional 1,795 shares in the last quarter. Finally, Johnson Financial Group Inc. purchased a new position in shares of Kornit Digital in the 3rd quarter valued at about $27,000. Hedge funds and other institutional investors own 92.76% of the company’s stock.

Kornit Digital Stock Down 1.7%

The stock has a 50-day moving average price of $14.29 and a 200 day moving average price of $14.40. The firm has a market capitalization of $715.30 million, a price-to-earnings ratio of -51.51 and a beta of 1.87.

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.