DNOW Inc. (NYSE:DNOW) Stock Rated "Moderate Buy" by Sell-Side Brokerages

Key Points

• Analyst sentiment is moderately positive: Seven brokerages give DNOW a consensus “Moderate Buy” rating, with three buys, one strong buy and three holds. The average 12-month price target is $18.20 versus a recent price of $16.27.
• Quarterly results exceeded expectations: DNOW reported earnings of $0.12 per share, beating estimates of $0.09, while revenue reached $1.31 billion and increased 108.1% year over year.
• Institutional ownership remains high: Hedge funds and other institutional investors own approximately 97.63% of DNOW’s outstanding shares, while the stock trades between a 12-month range of $10.94 and $17.26.

Shares of DNOW Inc. (NYSE:DNOW - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the seven brokerages that are covering the stock, MarketBeat reports. Three equities research analysts have rated the stock with a hold recommendation, three have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average twelve-month target price among brokers that have updated their coverage on the stock in the last year is $18.20.

DNOW has been the topic of several research reports. Susquehanna raised their price objective on DNOW from $16.00 to $19.00 and gave the stock a "positive" rating in a report on Friday, August 7th. Freedom Broker cut DNOW from a "buy" rating to a "hold" rating and set a $18.00 target price on the stock. in a research report on Thursday, September 10th. DA Davidson boosted their target price on DNOW from $17.00 to $19.00 and gave the company a "buy" rating in a report on Monday, August 10th. Weiss Ratings raised DNOW from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Thursday, October 8th. Finally, Wall Street Zen raised DNOW from a "sell" rating to a "hold" rating in a research report on Saturday, August 8th.

DNOW Trading Up 3.7%

NYSE DNOW opened at $16.27 on Tuesday. The company has a debt-to-equity ratio of 0.23, a current ratio of 2.14 and a quick ratio of 1.06. The firm's fifty day moving average price is $15.82 and its 200 day moving average price is $14.15. The company has a market capitalization of $2.94 billion, a price-to-earnings ratio of -15.20 and a beta of 0.89. DNOW has a 12 month low of $10.94 and a 12 month high of $17.26.

DNOW (NYSE:DNOW - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The oil and gas company reported $0.12 EPS for the quarter, topping the consensus estimate 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 firm had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.27 billion. During the same period last year, the business earned $0.27 EPS. DNOW's revenue for the quarter was up 108.1% compared to the same quarter last year. On average, sell-side analysts expect that DNOW will post 0.34 earnings per share for the current fiscal year.

Institutional Investors Weigh In On DNOW

A number of institutional investors and hedge funds have recently added to or reduced their stakes in DNOW. Resonant Capital Advisors LLC raised its holdings in DNOW by 9.4% in the 1st quarter. Resonant Capital Advisors LLC now owns 18,655 shares of the oil and gas company's stock valued at $222,000 after acquiring an additional 1,596 shares during the last quarter. Nykredit A S purchased a new position in shares of DNOW during the 2nd quarter worth $26,000. Sequoia Financial Advisors LLC lifted its stake in shares of DNOW by 2.4% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 86,530 shares of the oil and gas company's stock worth $1,122,000 after purchasing an additional 2,029 shares during the period. HB Wealth Management LLC boosted its holdings in shares of DNOW by 10.5% during the second quarter. HB Wealth Management LLC now owns 23,185 shares of the oil and gas company's stock worth $301,000 after purchasing an additional 2,210 shares during the last quarter. Finally, Sunbelt Securities Inc. boosted its holdings in shares of DNOW by 8,060.0% during the first quarter. Sunbelt Securities Inc. now owns 2,448 shares of the oil and gas company's stock worth $29,000 after purchasing an additional 2,418 shares during the last quarter. Hedge funds and other institutional investors own 97.63% of the company's stock.

DNOW Company Profile

DNOW Inc NYSE: DNOW is a distributor and supply chain solutions provider serving the energy and industrial markets. The company supplies products and services used in oil and natural gas exploration, production, midstream infrastructure, refining, petrochemical processing, and industrial applications.

Its offerings include pipes, valves, fittings, flanges, gaskets, fasteners, instrumentation, electrical products, production equipment, artificial lift products, and other maintenance, repair, and operating supplies.

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