Digital Generation Inc. up 26% Today, May Potentially Put Itself up for Sale

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Jul 17, 2012
Digital Generation Inc. recently reported that it is reviewing options and may potentially put itself up for sale. As a result, the company’s stock jumped 22% today, as of the time of this writing.


Digital Generation Inc. is a provider of 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. Digital Generation Inc. has a market cap of $280.9 million; its shares were traded at around $12.11 with a P/E ratio of 6.7 and P/S ratio of 0.9. Digital Generation Inc. had an annual average earnings growth of 9% over the past 10 years.


One guru holds a position in DGIT. Joel Greenblatt owns 61,893 shares as of 03/31/2012, which accounts for 0.055% of the $1.15 billion portfolio of Gotham Capital. No other gurus or insiders have recently traded in the company.


Digital Generation Inc. has an annual average growth rate of -0.1% on average for the last 10 years. For the last five years, the company grew 19.9% per year on average. Earnings per share were historically mostly positive, for 7 out of the last 10 years, DGIT has $82.96 million in cash, but owes $478 in long-term debt. In 2011, the company bought back $21.15 million worth of shares. DGIT has a predictability rating of 1 star.