DXP Enterprises (NASDAQ:DXPE) Downgraded by Wall Street Zen to "Hold"

Key Points

• Wall Street Zen downgraded DXP Enterprises from “Buy” to “Hold.” Despite the downgrade, analysts’ average rating remains “Moderate Buy,” with a consensus price target of $187.
• DXP reported quarterly revenue of $587.2 million, slightly above estimates of $584.5 million, but EPS of $1.64 missed the $1.79 consensus.
• The earnings miss and reported margin pressure have raised concerns about the company’s fourth-quarter outlook and weighed on investor sentiment.

DXP Enterprises (NASDAQ:DXPE - Get Free Report) was downgraded by Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued to investors on Sunday, Wall Street Zen reports.

DXPE has been the subject of several other reports. Stephens raised their price target on shares of DXP Enterprises from $160.00 to $220.00 and gave the stock an "overweight" rating in a report on Friday, August 7th. Weiss Ratings downgraded shares of DXP Enterprises from a "buy (b)" rating to a "buy (b-)" rating in a research report on Monday, October 26th. Two investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $187.00.

DXP Enterprises Trading Up 5.9%

Shares of DXPE opened at $140.68 on Friday. The stock's fifty day simple moving average is $178.94 and its 200 day simple moving average is $161.97. The firm has a market capitalization of $2.18 billion, a P/E ratio of 23.41 and a beta of 1.03. The company has a current ratio of 2.96, a quick ratio of 2.58 and a debt-to-equity ratio of 1.43. DXP Enterprises has a twelve month low of $84.04 and a twelve month high of $208.00.

DXP Enterprises (NASDAQ:DXPE - Get Free Report) last announced its quarterly earnings data on Thursday, November 5th. The industrial products company reported $1.64 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.79 by ($0.15). DXP Enterprises had a return on equity of 18.67% and a net margin of 4.45%. The business had revenue of $587.18 million during the quarter, compared to analysts' expectations of $584.50 million.

Institutional Trading of DXP Enterprises

A number of institutional investors have recently bought and sold shares of DXPE. Bank of New York Mellon Corp purchased a new stake in shares of DXP Enterprises during the 2nd quarter worth about $13,566,000. First Trust Advisors LP grew its stake in shares of DXP Enterprises by 1.1% in the 1st quarter. First Trust Advisors LP now owns 68,634 shares of the industrial products company's stock valued at $9,590,000 after buying an additional 756 shares in the last quarter. Congress Asset Management Co. grew its stake in shares of DXP Enterprises by 21.7% in the 3rd quarter. Congress Asset Management Co. now owns 64,015 shares of the industrial products company's stock valued at $11,600,000 after buying an additional 11,423 shares in the last quarter. Globeflex Capital L P bought a new stake in shares of DXP Enterprises in the 2nd quarter valued at approximately $6,507,000. Finally, SummerHaven Investment Management LLC increased its holdings in DXP Enterprises by 110.6% in the third quarter. SummerHaven Investment Management LLC now owns 17,271 shares of the industrial products company's stock worth $3,130,000 after buying an additional 9,070 shares during the last quarter. Institutional investors and hedge funds own 74.82% of the company's stock.

Key Stories Impacting DXP Enterprises

Here are the key news stories impacting DXP Enterprises this week:

• Positive Sentiment: Revenue was $587.2 million, modestly above analysts’ $584.5 million estimate, and coverage highlighted double-digit sales growth. Revenue results
• Neutral Sentiment: Some coverage raised the possibility that DXPE may be undervalued, but that view is tempered by earnings and fourth-quarter outlook concerns. Valuation and outlook article
• Negative Sentiment: Adjusted earnings were $1.64 per share, missing the $1.79 consensus estimate. Reports pointed to margin pressure, meaning sales growth did not translate into earnings as strongly as investors expected. Q3 margin analysis
• Negative Sentiment: The earnings miss has also raised questions about the fourth-quarter outlook, contributing to pressure on the shares after results. Stock reaction coverage

DXP Enterprises Company Profile

DXP Enterprises, Inc is an industrial distribution and services company headquartered in Houston, Texas. The company supplies maintenance, repair and operating products used by industrial, commercial and government customers, with an emphasis on rotating equipment, fluid handling and related industrial applications.

Its product offerings include pumps, valves, bearings, power-transmission components, hose and rubber products, industrial supplies, safety equipment and other maintenance products.

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