Last Updated: 19 Sep 2024
Executive Summary
Daktronics Inc. (DAKT) is a leading designer, manufacturer, and seller of electronic display systems worldwide. The company has a strong financial position with a market capitalization of $568.64 million, EBITDA of $87.57 million, and a trailing PE ratio of 58.05. Daktronics' stock price is currently trading at $12.19, below its 52-week high of $15.97. The company is expected to continue to grow in the long term, driven by increasing demand for its products in various industries.
Company Overview
Daktronics Inc. was founded in 1968 and is headquartered in Brookings, South Dakota. The company designs, manufactures, markets, and sells electronic display systems and related products worldwide. Daktronics' products are used in a variety of applications, including sports, entertainment, transportation, and commercial. The company has a global presence with operations in North America, Europe, Asia, and South America.
Fundamental Analysis
Daktronics' financial performance has been strong in recent years. The company's revenue has grown from $731.64 million in 2021 to $811.64 million in 2023. Net income has also increased from $37.57 million in 2021 to $43.79 million in 2023. Daktronics has a strong balance sheet with total assets of $568.64 million and total liabilities of $234.06 million. The company's cash and cash equivalents have increased from $37.57 million in 2021 to $43.79 million in 2023.
Technical Analysis
Daktronics' stock price has been in a downtrend since reaching a 52-week high of $15.97 in March 2023. The stock price is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is also below 50, indicating that the stock is oversold.
Short Term Outlook
In the short term, Daktronics' stock price is expected to continue to trade in a range. The stock price could face resistance at the 50-day moving average of $14.10. Support is likely at the 200-day moving average of $10.69.
Long Term Outlook
In the long term, Daktronics is expected to continue to grow as demand for its products increases. The company is well-positioned to benefit from the growing trend of digital signage. Daktronics' stock price is expected to appreciate in the long term as the company continues to execute on its growth strategy.
Analyst Recommendations
Analysts have a strong buy rating on Daktronics Inc. The average analyst target price is $16.75, which represents a potential upside of 37.6% from the current stock price.
