Monday, June 27, 2022

The Forecast Just Changed on Dana Incorporated (DAN)

Many stocks have been testing new highs in 2020, and one of the most notable is Dana Incorporated (DAN). Currently, DAN is trading at $15.72 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $14.25.

To add more color to this target, the company’s high over the last year is $20.71 and the low is $4.22. Over the last 52 weeks, DAN is down -24.09% while the S&P 500 is up 1.21%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, DAN reported a profit of $206.0 million. Dana Incorporated also saw revenues increase to $1.93 billion. In addition, DAN has free cash flow of -$114.0 million as of 03-2020 The company’s EBITDA came in at $138.0 million which compares well with its peers.

DAN booked profit margins of 2.00%, its Return on Equity (ROE) is 9.30%, and its Return on Assets is 2.30%. All told, it is clear that, DAN needs to be on your watchlist.

About Dana Incorporated

If readers are unfamiliar, Dana Incorporated provides power-conveyance and energy-management solutions for vehicles and machinery in North America, Europe, South America, and the Asia Pacific. It offers sealing solutions, thermal-management technologies, and fluid-power products to vehicle and engine manufacturer. The company operates in four segments: Light Vehicle Drive Systems, Commercial Vehicle Drive and Motion Systems, Off-Highway Drive and Motion Systems, and Power Technologies. The Light Vehicle Drive Systems segment offers front drive steer rigid axles, rear drive rigid axles, driveshafts/propshafts, front/rear drive units, AWD systems, power transfer units, electromechanical propulsion systems, EV gearboxes, and differentials for use in light trucks, sport utility vehicles, crossover utility vehicles, vans, and passenger cars. The Commercial Vehicle Drive and Motion Systems segment provides steer and drive axles, driveshafts, tire inflation systems, high and low voltage motors and inverters, vehicle integration services, and connected software solutions for medium and heavy duty trucks, buses, and specialty vehicles. The Off-Highway Drive and Motion Systems segment manufactures front and rear axles; driveshafts; transmissions; torque converters; wheel, track, and winch planetary drives; industrial gear boxes; custom gears and shifting solutions; tire inflation systems; electronic controls; hydraulic valves, pumps and motors; and EV motors and inverter for use in construction, earth moving, agricultural, mining, forestry, material handling, and industrial stationary applications. The Power Technologies segment offers gaskets, cover modules, heat shields, engine sealing systems, cooling products, and heat transfer products for light vehicle, medium/heavy vehicle, and off-highway markets. The company was formerly known as Dana Holding Corporation and changed its name to Dana Incorporated in August 2016. Dana Incorporated was founded in 1904 and is headquartered in Maumee, Ohio.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. DAN has a short ratio of 1.69 and outstanding shares of 144.20M.

Company Outlook

DAN has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.8 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 1.14. Dana Incorporated DAN also noted assets of $7.24 billion at the end of the last quarter. Investors should also keep an eye on sector updates as DAN has historically followed its peers on positive news.

All told, Dana Incorporated DAN has strung together solid data and demonstrated underlying fundamentals. At its current valuation, DAN represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Dana Incorporated DAN is now commanding a market cap of 2.27B and a float of 143.45M. DAN is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of DAN stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in DAN, either long or short, and we have not been compensated for this article.

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