DNOW Inc. (NYSE:DNOW) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Analysts give DNOW a “Moderate Buy” consensus based on seven ratings, with three buys, one strong buy, two holds and one sell. The average 12-month price target is $18.20 versus a recent price of $15.91.
• DNOW exceeded quarterly expectations, reporting $0.12 in earnings per share versus the $0.09 consensus and revenue of $1.31 billion, up 108.1% year over year. Analysts forecast full-year EPS of $0.34.
• Legal and reputational risks remain an overhang as investors pursue securities class-action claims related to allegedly omitted information about MRC Global’s ERP failures. Institutional investors own 97.63% of the stock, with BlackRock and Wellington among significant holders.

DNOW Inc. (NYSE:DNOW - Get Free Report) has earned a consensus rating of "Moderate Buy" from the seven brokerages that are currently covering the stock, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell rating, two have given a hold rating, three have issued a buy rating and one has issued a strong buy rating on the company. The average 1-year price target among brokers that have issued a report on the stock in the last year is $18.20.

A number of equities analysts recently commented on the company. Weiss Ratings restated a "sell (d+)" rating on shares of DNOW in a report on Monday, August 24th. Freedom Broker cut shares of DNOW from a "buy" rating to a "hold" rating and set a $18.00 target price for the company. in a research note on Thursday, September 10th. DA Davidson boosted their target price on shares of DNOW from $17.00 to $19.00 and gave the stock a "buy" rating in a research report on Monday, August 10th. Wall Street Zen upgraded shares of DNOW from a "sell" rating to a "hold" rating in a research note on Saturday, August 8th. Finally, Freedom Capital upgraded shares of DNOW to a "strong-buy" rating in a report on Monday, June 22nd.

DNOW Price Performance

DNOW opened at $15.91 on Friday. The stock has a fifty day moving average price of $15.43 and a 200 day moving average price of $13.69. The company has a current ratio of 2.14, a quick ratio of 1.06 and a debt-to-equity ratio of 0.23. DNOW has a 1 year low of $10.94 and a 1 year high of $17.26. The stock has a market cap of $2.88 billion, a price-to-earnings ratio of -14.87 and a beta of 0.87.

DNOW (NYSE:DNOW - Get Free Report) last issued its earnings results on Thursday, August 6th. The oil and gas company reported $0.12 earnings per share for the quarter, topping the consensus estimate of $0.09 by $0.03. DNOW had a positive return on equity of 3.91% and a negative net margin of 4.58%.The company had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.27 billion. During the same period in the prior year, the firm posted $0.27 EPS. The business's revenue was up 108.1% compared to the same quarter last year. Analysts forecast that DNOW will post 0.34 EPS for the current fiscal year.

Key DNOW News

Here are the key news stories impacting DNOW this week:

• Positive Sentiment: An investor-focused article argues that DNOW may be trading roughly 17% below estimated fair value and highlights an upcoming investor conference, which could improve visibility into the company’s outlook and potential synergies. DNOW Heads To Investor Conference, Is It Still 17% Below Fair Value?
• Neutral Sentiment: Multiple law firms reiterated that investors who owned DNOW common stock on August 5, 2025—the record date for the September 9, 2025 special meeting—may seek appointment as lead plaintiff in a securities class action. The deadline is October 2, 2026, with firms targeting investors reporting losses of more than $100,000. These notices largely repeat one another and do not represent a new company operating update. Rosen DNOW Deadline Notice
• Negative Sentiment: The concentrated stream of investor alerts and class-action announcements creates a legal and reputational overhang for DNOW. The lawsuits allege securities-law violations and investor harm connected to allegedly omitted information regarding MRC Global enterprise-resource-planning (ERP) failures. The allegations have not been proven, but potential litigation costs, settlement exposure, and management distraction can weigh on investor sentiment. Hagens Berman DNOW Investor Alert Pomerantz DNOW Investor Alert

Hedge Funds Weigh In On DNOW

Several hedge funds have recently bought and sold shares of DNOW. BlackRock Inc. acquired a new stake in shares of DNOW in the second quarter worth about $374,942,000. Wellington Management Group LLP increased its holdings in shares of DNOW by 15.6% during the 2nd quarter. Wellington Management Group LLP now owns 19,513,068 shares of the oil and gas company's stock valued at $253,084,000 after acquiring an additional 2,633,894 shares during the last quarter. Engine Capital Management LP bought a new position in shares of DNOW in the 1st quarter valued at approximately $61,525,000. First Trust Advisors LP raised its stake in shares of DNOW by 2,335.0% in the 1st quarter. First Trust Advisors LP now owns 4,065,728 shares of the oil and gas company's stock valued at $48,423,000 after acquiring an additional 3,898,758 shares in the last quarter. Finally, Barrow Hanley Mewhinney & Strauss LLC acquired a new stake in DNOW in the 2nd quarter worth approximately $42,540,000. 97.63% of the stock is owned by institutional investors and hedge funds.

About DNOW

DNOW Inc NYSE: DNOW is a global distributor of products and services used in the energy and industrial sectors. The company supplies equipment and materials for upstream, midstream and downstream oil and gas operations, as well as for industrial and utility applications.

Its offerings include pipes, valves, fittings, flanges, gaskets, tools, production equipment, artificial-lift products, safety supplies and other maintenance, repair and operating materials. DNOW also provides supply-chain management, inventory management, logistics, procurement and other technical and field-support services designed to help customers manage equipment sourcing and distribution.

Headquartered in Houston, Texas, DNOW serves customers through a network of distribution and service locations across North America and international markets.

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