Kornit Digital Ltd. (KRNT): Shuffling Back the Shorts

Kornit Digital Ltd. (NASDAQ:KRNT) short sellers believe it will decline in price. The most recent short interest data has been released for the January 31st settlement date, which shows a 48,304 share increase in total short interest for KRNT, to 3,907,501, a surge of 1.25% since January 15th. Average daily volume for Kornit Digital Ltd. at the January 31st settlement jumped to 354,012, as compared to 214,383 at the January 15th report. That brought days to cover to 11.03776, a 38.68% decrease from the 18.00141 days to cover recorded at the prior short interest data release. You could look at analyst ratings. The average analyst recommendations at 1.9 suggests selling these shares. But the opinions of a small number of people, though sometimes influential, doesn’t always speak for the hundreds of thousands of traders on Wall Street.

Analysts are forecasting revenue to climb 27.6 percent to $38.22M in the next fiscal quarter, while earnings are seen soaring by nearly 200 percent to $0.12 per share. History has shown that shares in Kornit Digital Ltd. have gone up on 8 different earnings reaction days and are predicted to add 0.04 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.13 per share, better than the $0.12, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $37.79M, worse than the $38.22M analysts expected. Earnings are estimated to increase by -289.5 percent this year, 63.64 percent next year and continue to increase by 0 percent annually for the next 5 years.

Kornit Digital Ltd. (KRNT) will probably climb 1.17 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $25 price as 12-month high target. This represents a whopping 12.41 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $23, which represents a return potential of 3.42 percent when compared to the closing price of the stock of $22.24 on Wednesday, February 13. The lowest price target for the stock is $20 — slightly more than -10.07 percent from KRNT’s current share price.

The stock is currently hovering around the first support level of $20.27. Below this, the next support is placed in the zone of $18.31. Till the time, the KRNT stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 64.77 on daily chart, which may remain a cause for concern. If the price breaks below $18.31 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $23.28 mark may result into a pull-back move towards $24.33 level.

On 13th of February, Kornit Digital Ltd. (NASDAQ:KRNT) shares ended higher after a volatile session. The shares accumulated 1.28 points or 6.11 percent at $22.24 with a light trade volume of 1.065 million shares. After opening the session at $20.56, the shares went as high as $22.36 and as low as $19.35, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $760 million and now has 34.15 million shares outstanding. Kornit Digital Ltd. (KRNT) stock has gained 15.65 percent of market value in 21 trading days.

KRNT stock has a trailing 3-year beta of 0.91, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $0.16 a share in the trailing twelve months. The stock’s value has surged 18.8 percent year to date (YTD) against a rise of 59.43 percent in 12 month’s time. The company’s shares still trade -6.94 percent away from its 1-year high of $23.90 and 90.09 percent up from 52-week low of $11.70. The average consensus rating on the company is 1.9, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Kornit Digital Ltd. (KRNT) are trading at a P/E ratio of 133.14 times earnings reported for the past 12 months. The industry KRNT operates in has an average P/E of 19.32. Its P/E ratio went as low as 60.48X and as high as 484.86 over the 5-year span. Further, it is sporting a 5.65 on the Price-to-Sales ratio. Compare this with the industry average P/S of 3.02. 49.2 percent is the gross profit margin for Kornit Digital Ltd. and operating margin sits at 3.2 percent. Along with this, the net profit margin is 3.8 percent.

Let’s take a look at some insider activity at Kornit Digital Ltd. (NASDAQ:KRNT) and see the pattern.