Is Dun & Bradstreet Holdings Inc. (DNB) A Risky Investment?

Dun & Bradstreet Holdings Inc. (NYSE:DNB) finished Friday with an addition of $0.01 to close at $10.70, an upside of 0.09 percent. An average of 1,964,800 shares of common stock have been traded in the last five days. There was a gain of $0.08 in the past week, and it reached a new high 3 times over the past 12 months. The last 20 days have seen an average of 2,656,090 shares traded, while the 50-day average volume stands at 2,599,176.

DNB stock has decreased by -7.60% in the last month. The company shares reached their 1-month lowest point of $10.44 on 08/18/23. With the stock rallying to its 52-week high on 02/02/23, shares of the company touched a low of $9.50 and a high of $15.45 in 52 weeks. It has reached a new high 14 times so far this year and lost -12.72% or -$1.56 in price. In spite of this, the price is down -30.74% from the 52-week high.

Insider Transactions

DNB stock investors should be aware that Dun & Bradstreet Holdings Inc. (DNB) stock had its last reported insider trading activity 19 days ago on Aug 07. In this transaction, the insider spent $151,807,847. Director, THOMAS H. LEE ADVISORS, LLC, disposed of 13,657,926 shares at a price of $11.12 on Aug 07. The insider now owns more than $151,807,847 worth of shares. Prior to that, Executive Chairman FOLEY WILLIAM P II went on to Sale 1,290,994 shares at $10.72 each on May 10. An amount of $13,839,456 was transacted.

Valuation Metrics

Dun & Bradstreet Holdings Inc. (DNB) stock’s beta is 1.05. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 2.08, the price-to-book (PB) ratio at 1.34, and the price-to-cash flow ratio at 14.49.

Financial Health

The quick ratio of Dun & Bradstreet Holdings Inc. for the three months ended June 29 was 0.70, and the current ratio was 0.70, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 1.05 and a total debt to equity ratio of 1.06 for the quarter ending June 29. Dun & Bradstreet Holdings Inc.’s EBITDA margin for the year ending June 29 is 36.37%, while its operating margin for the same period stands at 5.70%. Its gross profit as reported stood at $1.5 billion compared to revenue of $2.22 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Dun & Bradstreet Holdings Inc.’s return on assets was -0.20%.

Earnings Surprise

For the three-month period that ended June 29, Dun & Bradstreet Holdings Inc. had $3.61 billion in total debt. The analyst consensus anticipated Dun & Bradstreet Holdings Inc.’s latest quarter earnings to come in at $0.21 per share, but it turned out to be $0.22, a 4.80% surprise. For the quarter, EBITDA amounted to $165.7 million. Shareholders own equity worth $439.23 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Dun & Bradstreet Holdings Inc. (DNB) price momentum. RSI 9-day as of the close on 25 August was 38.87%, suggesting the stock is Neutral, with historical volatility in this time frame at 23.92%.

As of today, DNB’s price is $10.70 +0.75% or $0.08 from its 5-day moving average. DNB is currently trading -9.32% lower than its 20-day SMA and -7.12% lower than its 100-day SMA. However, the stock’s current price level is -3.52% below the SMA50 and -20.27% below the SMA200.

The stochastic %K and %D were 25.77% and 21.08%, respectively, and the average true range (ATR) was 0.29. With the 14-day stochastic at 34.90% and the average true range at 0.31, the RSI (14) stands at 40.14%. The stock has reached 0.06 on the 9-day MACD Oscillator while the 14-day reading was at -0.06.

Analyst Ratings

Deutsche Bank upgraded Dun & Bradstreet Holdings Inc. (NYSE: DNB) to a a Buy rating in its most recent analyst report. Previously, the stock was rated as a Hold. The consensus rating for Dun & Bradstreet Holdings Inc. (DNB) among analysts is Overweight. According to current brokerage recommendations, 1 brokerage firm advise that investors sell DNB, while 5 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 7 others rate it as a “buy”.

What is DNB’s price target for the next 12 months?

Analysts predict a range of price targets between $11.00 and $18.00, with a median target of $15.25. Taking a look at these predictions, the average price target given by analysts for Dun & Bradstreet Holdings Inc. (DNB) stock is $14.86.

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