DNOW Inc. (NYSE:DNOW) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• DNOW has a consensus “Moderate Buy” rating from six analysts, with three buys, one strong buy, one hold and one sell. The average 12-month price target is $18.25, above the reported share price of $15.95.
• Recent analysts have generally raised their outlook, with DA Davidson and Susquehanna lifting their price targets to $19, although Weiss Ratings maintained a sell rating.
• DNOW exceeded quarterly expectations, reporting $0.12 in earnings per share versus a $0.09 estimate and $1.31 billion in revenue, up 108.1% year over year. Institutional investors own 97.63% of the company’s stock.

DNOW Inc. (NYSE:DNOW - Get Free Report) has earned a consensus rating of "Moderate Buy" from the six brokerages that are covering the stock, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell recommendation, one has given a hold recommendation, three have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 12 month target price among brokers that have updated their coverage on the stock in the last year is $18.25.

Several equities research analysts have recently weighed in on DNOW shares. DA Davidson upped their price objective on DNOW from $17.00 to $19.00 and gave the company a "buy" rating in a research note on Monday, August 10th. Susquehanna raised their target price on DNOW from $16.00 to $19.00 and gave the stock a "positive" rating in a research report on Friday, August 7th. Zacks Research raised DNOW from a "strong sell" rating to a "hold" rating in a research note on Friday, May 22nd. Freedom Capital raised DNOW to a "strong-buy" rating in a research note on Monday, June 22nd. Finally, Weiss Ratings reiterated a "sell (d+)" rating on shares of DNOW in a research report on Monday, August 24th.

Institutional Investors Weigh In On DNOW

Several large investors have recently made changes to their positions in the company. Covestor Ltd raised its holdings in shares of DNOW by 15.7% in the fourth quarter. Covestor Ltd now owns 4,614 shares of the oil and gas company's stock valued at $61,000 after buying an additional 626 shares during the last quarter. Envestnet Portfolio Solutions Inc. lifted its position in DNOW by 1.9% during the 4th quarter. Envestnet Portfolio Solutions Inc. now owns 45,540 shares of the oil and gas company's stock worth $603,000 after buying an additional 860 shares in the last quarter. Summit Global Investments grew its holdings in DNOW by 5.4% during the 4th quarter. Summit Global Investments now owns 16,991 shares of the oil and gas company's stock worth $225,000 after acquiring an additional 865 shares during the last quarter. PNC Financial Services Group Inc. grew its holdings in DNOW by 12.2% during the 4th quarter. PNC Financial Services Group Inc. now owns 8,191 shares of the oil and gas company's stock worth $109,000 after acquiring an additional 892 shares during the last quarter. Finally, EverSource Wealth Advisors LLC increased its position in DNOW by 50.4% in the 4th quarter. EverSource Wealth Advisors LLC now owns 3,629 shares of the oil and gas company's stock valued at $48,000 after acquiring an additional 1,216 shares in the last quarter. Institutional investors own 97.63% of the company's stock.

DNOW Price Performance

NYSE:DNOW opened at $15.95 on Monday. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.06 and a current ratio of 2.14. The company has a 50-day moving average of $14.40 and a 200-day moving average of $13.42. DNOW has a 52 week low of $10.94 and a 52 week high of $17.26. The company has a market capitalization of $2.88 billion, a price-to-earnings ratio of -14.91 and a beta of 0.82.

DNOW (NYSE:DNOW - Get Free Report) last posted its earnings results on Thursday, August 6th. The oil and gas company reported $0.12 earnings per share for the quarter, beating analysts' consensus estimates of $0.09 by $0.03. DNOW had a negative net margin of 4.58% and a positive return on equity of 3.91%. The business had revenue of $1.31 billion for the quarter, compared to analysts' expectations of $1.27 billion. During the same quarter in the previous year, the firm posted $0.27 earnings per share. The firm's revenue for the quarter was up 108.1% on a year-over-year basis. As a group, equities research analysts anticipate that DNOW will post 0.34 earnings per share for the current fiscal year.

About DNOW

DistributionNOW NYSE: DNOW is a global distributor of energy and industrial products, serving a broad range of end-markets including oil and gas, petrochemical, power generation, and industrial manufacturing. Headquartered in Houston, Texas, the company provides solutions across the life cycle of energy and industrial assets, with an emphasis on safety, reliability and operational efficiency.

The company’s core product portfolio includes piping systems and related components (such as valves, fittings, flanges and gaskets), instrumentation, electrical and automation equipment, fasteners, industrial safety supplies, chemicals and composite products.

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