Donnelley Financial Solutions (NYSE:DFIN) Shares Gap Down Following Weak Earnings

Donnelley Financial Solutions, Inc. (NYSE:DFIN) gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $65.85, but opened at $63.85. Donnelley Financial Solutions shares last traded at $58.54, with a volume of 28,185 shares traded.

The company reported $0.26 earnings per share for the quarter, missing the consensus estimate of $0.48 by ($0.22). Donnelley Financial Solutions had a return on equity of 22.70% and a net margin of 12.06%.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on DFIN shares. Needham & Company LLC reissued a “buy” rating and issued a $79.00 price target on shares of Donnelley Financial Solutions in a report on Wednesday, January 15th. B. Riley reduced their target price on Donnelley Financial Solutions from $80.00 to $70.00 and set a “buy” rating on the stock in a research note on Tuesday, November 5th.

Insider Activity

In related news, CFO David A. Gardella sold 3,000 shares of Donnelley Financial Solutions stock in a transaction on Tuesday, December 17th. The stock was sold at an average price of $62.68, for a total value of $188,040.00. Following the transaction, the chief financial officer now owns 197,406 shares in the company, valued at approximately $12,373,408.08. This trade represents a 1.50 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 11.90% of the company’s stock.

Institutional Investors Weigh In On Donnelley Financial Solutions

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Farther Finance Advisors LLC grew its holdings in shares of Donnelley Financial Solutions by 781.5% during the 3rd quarter. Farther Finance Advisors LLC now owns 476 shares of the company’s stock worth $31,000 after purchasing an additional 422 shares during the period. Quarry LP acquired a new position in Donnelley Financial Solutions during the fourth quarter valued at approximately $42,000. Aquatic Capital Management LLC acquired a new stake in shares of Donnelley Financial Solutions in the fourth quarter worth $49,000. Huntington National Bank increased its position in shares of Donnelley Financial Solutions by 20.7% in the fourth quarter. Huntington National Bank now owns 910 shares of the company’s stock worth $57,000 after acquiring an additional 156 shares in the last quarter. Finally, Principal Securities Inc. raised its stake in shares of Donnelley Financial Solutions by 1,537.1% in the 4th quarter. Principal Securities Inc. now owns 1,015 shares of the company’s stock valued at $64,000 after acquiring an additional 953 shares during the period. 93.84% of the stock is currently owned by institutional investors and hedge funds.

Donnelley Financial Solutions Price Performance

The company’s fifty day moving average is $63.40 and its two-hundred day moving average is $63.73. The company has a debt-to-equity ratio of 0.28, a quick ratio of 1.15 and a current ratio of 1.15. The firm has a market cap of $1.47 billion, a price-to-earnings ratio of 15.95 and a beta of 1.36.

About Donnelley Financial Solutions

Donnelley Financial Solutions, Inc provides innovative software and technology-enabled financial regulatory and compliance solutions in the United States, Asia, Europe, Canada, and internationally. It operates through four segments: Capital Markets Software Solutions (CM-SS); Capital Markets Compliance and Communications Management (CM-CCM); Investment Companies Software Solutions (IC-SS); and Investment Companies Compliance and Communications Management (IC-CCM).