Daktronics (NASDAQ:DAKT) Downgraded by Wall Street Zen to “Hold”

Wall Street Zen downgraded shares of Daktronics (NASDAQ:DAKT) from a buy rating to a hold rating in a research note released on Saturday morning,Wall Street Zen reports.

A number of other research analysts have also commented on DAKT. Roth Capital upped their price objective on Daktronics from $26.00 to $29.00 and gave the company a “buy” rating in a report on Thursday, July 2nd. Craig Hallum reissued a “buy” rating and set a $33.00 target price on shares of Daktronics in a report on Thursday. Weiss Ratings raised Daktronics from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, June 25th. Finally, Zacks Research raised shares of Daktronics from a “strong sell” rating to a “hold” rating in a research report on Monday, June 15th. Two research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, Daktronics presently has a consensus rating of “Moderate Buy” and a consensus price target of $31.00.

Daktronics Trading Down 0.7%

Shares of DAKT stock opened at $19.35 on Friday. Daktronics has a 12-month low of $17.09 and a 12-month high of $28.27. The company has a market capitalization of $930.54 million, a PE ratio of 19.74, a price-to-earnings-growth ratio of 0.63 and a beta of 1.68. The firm has a 50 day moving average price of $19.93 and a two-hundred day moving average price of $20.60. The company has a quick ratio of 1.74, a current ratio of 2.17 and a debt-to-equity ratio of 0.17.

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

Insider Activity at Daktronics

In related news, insider Sheila Anderson sold 3,636 shares of the business’s stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $20.01, for a total value 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. The trade was a 6.99% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, EVP Bradley Wiemann sold 4,000 shares of the stock in a transaction that occurred on Friday, July 17th. The stock was sold at an average price of $19.22, for a total value of $76,880.00. Following the sale, the executive vice president directly owned 125,946 shares in the company, valued at $2,420,682.12. This represents a 3.08% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 4.60% of the company’s stock.

Institutional Trading of Daktronics

Several large investors have recently modified their holdings of the stock. Quarry LP bought a new position in shares of Daktronics in the 3rd quarter valued at $25,000. Cornerstone Planning Group LLC acquired a new position in shares of Daktronics during the 1st quarter worth $26,000. Caitong International Asset Management Co. Ltd lifted its position in shares of Daktronics by 22,566.7% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,360 shares of the technology company’s stock worth $27,000 after buying an additional 1,354 shares during the last quarter. USA Financial Formulas lifted 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 worth $28,000 after buying an additional 1,376 shares during the last quarter. Finally, State of Wyoming acquired a new stake in Daktronics in the second quarter valued at about $33,000. 61.69% of the stock is owned by institutional investors and hedge funds.

Daktronics News Summary

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

About Daktronics

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.