Wall Street Zen Downgrades Daktronics (NASDAQ:DAKT) to Hold

Daktronics (NASDAQ:DAKT) was downgraded by investment analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a note issued to investors on Saturday, Wall Street Zen reports.

DAKT has been the subject of a number of other research reports. Roth Capital raised their price objective on shares of Daktronics from $26.00 to $29.00 and gave the stock a “buy” rating in a report on Thursday, July 2nd. Craig Hallum reiterated a “buy” rating and issued a $33.00 target price on shares of Daktronics in a research note on Thursday. Zacks Research raised shares of Daktronics from a “strong sell” rating to a “hold” rating in a research report on Monday, June 15th. Finally, Weiss Ratings upgraded shares of Daktronics from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday, June 25th. Two analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, Daktronics presently has a consensus rating of “Moderate Buy” and an average price target of $31.00.

Daktronics Stock Performance

Shares of Daktronics stock opened at $19.35 on Friday. The business’s fifty day simple moving average is $19.93 and its 200 day simple moving average is $20.55. The company has a current ratio of 2.17, a quick ratio of 1.66 and a debt-to-equity ratio of 0.17. Daktronics has a 12 month low of $17.09 and a 12 month high of $28.27. The firm has a market capitalization of $930.54 million, a P/E ratio of 19.74, a price-to-earnings-growth ratio of 0.63 and a beta of 1.68.

Daktronics (NASDAQ:DAKT) last announced its earnings results on Wednesday, September 2nd. The technology company reported $0.40 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.35 by $0.05. The firm had revenue of $234.57 million during the quarter, compared to analyst estimates of $230.27 million. Daktronics had a return on equity of 18.05% and a net margin of 5.66%.During the same period last year, the firm posted $0.33 EPS. As a group, analysts anticipate that Daktronics will post 1.24 EPS for the current year.

Insider Transactions at Daktronics

In other news, EVP Bradley Wiemann sold 4,000 shares of Daktronics stock in a transaction dated Friday, July 17th. The shares were sold at an average price of $19.22, for a total value of $76,880.00. Following the completion of the transaction, the executive vice president owned 125,946 shares in the company, valued at $2,420,682.12. This trade represents a 3.08% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Sheila Anderson sold 3,636 shares of the business’s stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $20.01, for a total transaction of $72,756.36. Following the completion of the sale, the insider directly owned 48,371 shares in the company, valued at approximately $967,903.71. This trade represents a 6.99% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 4.60% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. Quarry LP bought a new position in shares of Daktronics in the third quarter valued at approximately $25,000. Cornerstone Planning Group LLC bought a new position in Daktronics in the 1st quarter valued at $26,000. Caitong International Asset Management Co. Ltd boosted its holdings in Daktronics by 22,566.7% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,360 shares of the technology company’s stock valued at $27,000 after purchasing an additional 1,354 shares during the period. USA Financial Formulas grew its position in shares of Daktronics by 3,057.8% during the 1st quarter. USA Financial Formulas now owns 1,421 shares of the technology company’s stock valued at $28,000 after purchasing an additional 1,376 shares in the last quarter. Finally, State of Wyoming bought a new position in shares of Daktronics in the second quarter worth $33,000. Institutional investors own 61.69% of the company’s stock.

Key Daktronics News

Here are the key news stories impacting Daktronics this week:

• Positive Sentiment: Quarterly earnings exceeded expectations. Daktronics reported earnings of $0.40 per share, above the $0.35 consensus estimate, while revenue of $234.6 million also topped forecasts. The earnings beat helped support an initial move higher in the stock. Daktronics Shares Gap Up on Earnings Beat
• Positive Sentiment: Analysts raised their longer-term outlook. Sidoti increased its fiscal 2027 EPS forecast to $1.25 from $1.21, including higher estimates for the third and fourth quarters, although its second-quarter forecast was reduced. Sidoti Daktronics estimates
• Positive Sentiment: Investment commentary remains constructive. Diamond Hill described Daktronics as a turnaround opportunity supported by a strong balance sheet. Management has also outlined fiscal 2028 targets calling for 7%–10% annual revenue growth and 10%–12% operating margins, while considering an exit from international transportation operations.
• Neutral Sentiment: The restructuring outlook has mixed implications. Around 100 jobs may be at risk at Daktronics’ Clare, Ireland operation. Potential cost savings could help margins, but the workforce reduction signals near-term operational disruption and weaker local demand. Around 100 jobs at risk at Daktronics in County Clare
• Negative Sentiment: Regulatory and reputational risk is the main overhang. The SEC and NBA are seeking information about Daktronics’ endorsement arrangement involving Kawhi Leonard and the Clippers amid allegations concerning sponsor payments and services that were not delivered. Daktronics says it is cooperating, but the investigation could lead to legal costs, penalties, disclosure requirements or reputational damage. Daktronics Says SEC, NBA Seek Information on Kawhi Leonard

Daktronics Company Profile

Daktronics, Inc (NASDAQ: DAKT) is a leading designer and manufacturer of electronic display systems, video boards, scoreboards and related control systems. Founded in 1968 in Brookings, South Dakota by Al Kurtenbach and Duane Sander, the company has built a reputation for delivering custom visual display solutions to a wide range of markets. Its product portfolio includes large-format LED video displays, programmable message centers, digital billboards, and audio-visual solutions tailored to sports venues, transportation authorities, retail environments and live event producers.

The company’s primary business activities encompass the engineering, fabrication and installation of display systems for customers around the world.