RR Donnelley & Sons (NYSE:RRD) Upgraded by Zacks Investment Research to “Buy”

Zacks Investment Research upgraded shares of RR Donnelley & Sons (NYSE:RRD) from a hold rating to a buy rating in a report released on Thursday morning, Zacks.com reports. The firm currently has $3.50 target price on the business services provider’s stock.

According to Zacks, “RR Donnelley is a leading global provider of integrated multichannel marketing and business communications solutions. The company helps the customers communicate more efficiently and effectively as they use words and images to inform, educate, entertain and sell. In each of the businesses, the company uses the distinctive capabilities to manage and distribute words and images in ways that provide the greatest value to every customer. RR Donnelley offers a comprehensive portfolio of capabilities, experience and scale that enables organizations around the world to effectively create, manage, deliver and optimize their multichannel communications strategies. RR Donnelley’s innovative technologies enhance digital and print communications to deliver integrated messages across multiple media to highly targeted audiences at optimal times for clients in virtually every private and public sector. “

RRD opened at $3.51 on Thursday. RR Donnelley & Sons has a 52-week low of $1.67 and a 52-week high of $6.76. The company has a market cap of $250.63 million, a P/E ratio of 5.01 and a beta of 1.59. The firm’s 50-day moving average price is $2.19 and its 200-day moving average price is $3.18.



RR Donnelley & Sons (NYSE:RRD) last posted its quarterly earnings data on Tuesday, July 30th. The business services provider reported ($0.03) earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.15) by $0.12. RR Donnelley & Sons had a negative net margin of 0.07% and a negative return on equity of 23.01%. The firm had revenue of $1.51 billion for the quarter, compared to the consensus estimate of $1.50 billion. During the same quarter in the prior year, the company posted ($0.09) earnings per share. The company’s revenue for the quarter was down 10.2% compared to the same quarter last year. On average, research analysts expect that RR Donnelley & Sons will post 0.71 EPS for the current fiscal year.

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 3rd. Investors of record on Thursday, August 15th were given a $0.03 dividend. The ex-dividend date was Wednesday, August 14th. This represents a $0.12 dividend on an annualized basis and a yield of 3.42%. RR Donnelley & Sons’s dividend payout ratio is currently 17.14%.

In other news, major shareholder Chatham Asset Management, Llc bought 776,000 shares of the company’s stock in a transaction that occurred on Wednesday, August 21st. The shares were purchased at an average price of $2.03 per share, for a total transaction of $1,575,280.00. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In the last quarter, insiders purchased 1,934,000 shares of company stock worth $4,127,960. 1.07% of the stock is owned by insiders.

Hedge funds and other institutional investors have recently modified their holdings of the stock. Acadian Asset Management LLC boosted its position in RR Donnelley & Sons by 67.3% in the second quarter. Acadian Asset Management LLC now owns 1,575,883 shares of the business services provider’s stock valued at $3,104,000 after buying an additional 634,169 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. boosted its position in RR Donnelley & Sons by 12.0% in the second quarter. Connor Clark & Lunn Investment Management Ltd. now owns 789,287 shares of the business services provider’s stock valued at $1,555,000 after buying an additional 84,614 shares during the last quarter. SG Americas Securities LLC boosted its position in RR Donnelley & Sons by 42.8% in the second quarter. SG Americas Securities LLC now owns 102,760 shares of the business services provider’s stock valued at $202,000 after buying an additional 30,820 shares during the last quarter. Meeder Asset Management Inc. boosted its position in RR Donnelley & Sons by 59.7% in the second quarter. Meeder Asset Management Inc. now owns 49,447 shares of the business services provider’s stock valued at $98,000 after buying an additional 18,492 shares during the last quarter. Finally, Cooper Creek Partners Management LLC boosted its position in RR Donnelley & Sons by 45.9% in the first quarter. Cooper Creek Partners Management LLC now owns 1,009,948 shares of the business services provider’s stock valued at $4,767,000 after buying an additional 317,773 shares during the last quarter. Hedge funds and other institutional investors own 86.95% of the company’s stock.

About RR Donnelley & Sons

R.R. Donnelley & Sons Company, an integrated communications provider, enables organizations to create, manage, deliver, and optimize their multichannel marketing and business communications. It operates through Business Services and Marketing Solutions segments. The Business Services segment offers commercial printing products and branded materials, including manuals, publications, brochures, business cards, flyers, post cards, posters, and promotional items; and specialized transportation and distribution services.

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