Freedom Broker Upgrades DNOW (NYSE:DNOW) to Buy

Key Points

• Freedom Broker upgraded DNOW from Hold to Buy and set an $18 price target, implying about 35.5% upside from the prior close.
• Analyst sentiment is broadly positive: DNOW has a consensus “Moderate Buy” rating and an average price target of $18.
• Quarterly EPS of $0.18 beat the $0.15 estimate, but revenue of about $1.34 billion missed expectations and EPS was down from $0.26 a year earlier.

DNOW (NYSE:DNOW - Get Free Report) was upgraded by investment analysts at Freedom Broker from a "hold" rating to a "buy" rating in a research note issued to investors on Monday, FinViz reports. The firm currently has a $18.00 target price on the oil and gas company's stock. Freedom Broker's price target would suggest a potential upside of 35.54% from the stock's previous close.

A number of other brokerages have also recently issued reports on DNOW. Wall Street Zen raised DNOW from a "sell" rating to a "hold" rating in a report on Saturday, August 8th. Weiss Ratings upgraded DNOW from a "sell (d+)" rating to a "hold (c-)" rating in a report on Thursday, October 8th. DA Davidson raised their target price on DNOW from $17.00 to $19.00 and gave the stock a "buy" rating in a research report on Monday, August 10th. Finally, Susquehanna cut their target price on DNOW from $19.00 to $18.00 and set a "positive" rating on the stock in a report on Friday. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, DNOW presently has a consensus rating of "Moderate Buy" and a consensus price target of $18.00.

DNOW Trading Up 0.1%

DNOW opened at $13.28 on Monday. The company has a market cap of $2.40 billion, a P/E ratio of -11.45 and a beta of 0.95. The company has a current ratio of 2.08, a quick ratio of 1.07 and a debt-to-equity ratio of 0.18. The company's 50 day moving average is $15.70 and its 200-day moving average is $14.11. DNOW has a 1-year low of $10.94 and a 1-year high of $17.26.

DNOW (NYSE:DNOW - Get Free Report) last announced its quarterly earnings results on Thursday, November 5th. The oil and gas company reported $0.18 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.15 by $0.03. DNOW had a negative net margin of 3.89% and a positive return on equity of 3.77%. The company had revenue of $1.34 billion during the quarter, compared to the consensus estimate of $1.35 billion. During the same period in the prior year, the business earned $0.26 earnings per share. The company's revenue for the quarter was up 110.9% compared to the same quarter last year. Equities research analysts predict that DNOW will post 0.35 earnings per share for the current fiscal year.

Institutional Trading of DNOW

Several hedge funds have recently bought and sold shares of DNOW. BlackRock Inc. purchased a new position in shares of DNOW during the 2nd quarter valued at $374,942,000. Wellington Management Group LLP raised its position in shares of DNOW by 15.6% in the second quarter. Wellington Management Group LLP now owns 19,513,068 shares of the oil and gas company's stock worth $253,084,000 after buying an additional 2,633,894 shares in the last quarter. Engine Capital Management LP purchased a new stake in shares of DNOW in the first quarter worth $61,525,000. First Trust Advisors LP raised its position in shares of DNOW by 2,335.0% in the first quarter. First Trust Advisors LP now owns 4,065,728 shares of the oil and gas company's stock worth $48,423,000 after buying an additional 3,898,758 shares in the last quarter. Finally, Barrow Hanley Mewhinney & Strauss LLC bought a new stake in DNOW during the second quarter valued at $42,540,000. Institutional investors and hedge funds own 97.63% of the company's stock.

More DNOW News

Here are the key news stories impacting DNOW this week:

• Positive Sentiment: Adjusted earnings were $0.18 per share, topping the $0.15 consensus estimate. DNOW also reported $120 million in operating cash flow and $76 million in adjusted EBITDA, which the CEO said was nearly double the first-quarter result. DNOW Reports Third Quarter 2026 Results
• Positive Sentiment: The company repurchased $17 million of shares in the quarter and $92 million year to date, supporting shareholder returns. DNOW Reports Third Quarter 2026 Results
• Neutral Sentiment: Susquehanna lowered its price target to $18 from $19 but kept a positive rating, signaling continued optimism alongside a more cautious valuation outlook. Susquehanna analyst ratings
• Negative Sentiment: Revenue of $1.337 billion fell short of the $1.35 billion consensus, while adjusted EPS declined from $0.26 a year earlier to $0.18. The earnings beat may therefore be tempered by weaker year-over-year profitability and missed sales expectations. DNOW misses Q3 2026 sales expectations

DNOW Company Profile

DNOW Inc NYSE: DNOW distributes products and provides supply-chain and related services to energy and industrial customers. Its offerings include pipe, valves, fittings, flanges, instrumentation, electrical products, and safety and maintenance supplies.

The company supports customers across the energy value chain, including upstream, midstream, and downstream operations, as well as other industrial markets. Its services include procurement, inventory management, logistics, and technical support, with operations serving customers in North America and international markets.

DNOW was established in 2014 as a spin-off from National Oilwell Varco.

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