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TheStreet Wire

Digital Generation Stock Gaps Down On Today's Open (DGIT)

By TheStreet Wire 02/16/12 - 09:54 AM EST

Find out if (DGIT) is in Cramer's Portfolio.

NEW YORK (TheStreet) -- Shares of Digital Generation (Nasdaq:DGIT) were gapping down Thursday morning with an open price 15.1% lower than Wednesday's closing price. The stock closed at $13.59 Wednesday and opened today's trading at $11.54.

The average volume for Digital Generation has been 447,500 shares per day over the past 30 days. Digital Generation has a market cap of $378.1 million and is part of the technology sector and computer hardware industry. Shares are up 14% year to date as of the close of trading on Wednesday.

Digital Generation, Inc. provides digital technology services that enable the electronic delivery of advertisements, syndicated programs, and video news releases to traditional broadcasters, online publishers, and other media outlets. The company has a P/E ratio of 11.1, below the average computer hardware industry P/E ratio of 11.5 and below the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates Digital Generation as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow. You can view the full Digital Generation Ratings Report.

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