Distribution Solutions Group (NASDAQ:DSGR) Price Target Lowered to $35.00 at Barrington Research

Key Points

• Barrington Research cut its price target on Distribution Solutions Group from $41 to $35 but kept an "outperform" rating; the $35 target implies roughly a 64.45% upside from the stock's recent close (~$21.28).
• The company posted an earnings miss—$0.18 EPS vs. $0.32 expected and $481.6M revenue vs. $496.3M expected—and shares are trading near their 1‑year low ($21.28).
• Management authorized a $30M buyback (up to 2.5% of shares) while analysts remain split (one Buy, one Sell) with a consensus rating of "Hold" and a consensus price target of $35.

Distribution Solutions Group (NASDAQ:DSGR - Get Free Report) had its price target dropped by equities researchers at Barrington Research from $41.00 to $35.00 in a research report issued to clients and investors on Tuesday,Benzinga reports. The brokerage currently has an "outperform" rating on the stock. Barrington Research's price target indicates a potential upside of 64.45% from the stock's previous close.

Separately, Weiss Ratings restated a "sell (d)" rating on shares of Distribution Solutions Group in a report on Monday, December 29th. One research analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, Distribution Solutions Group currently has an average rating of "Hold" and a consensus price target of $35.00.

Distribution Solutions Group Price Performance

DSGR traded down $0.19 during midday trading on Tuesday, reaching $21.28. 21,476 shares of the company's stock were exchanged, compared to its average volume of 96,517. The business's 50-day moving average price is $29.15 and its 200 day moving average price is $29.13. The stock has a market capitalization of $983.06 million, a PE ratio of 118.19 and a beta of 0.51. Distribution Solutions Group has a 1-year low of $20.30 and a 1-year high of $33.80. The company has a debt-to-equity ratio of 1.02, a current ratio of 2.56 and a quick ratio of 1.35.

Distribution Solutions Group (NASDAQ:DSGR - Get Free Report) last issued its quarterly earnings results on Thursday, March 5th. The company reported $0.18 EPS for the quarter, missing analysts' consensus estimates of $0.32 by ($0.14). Distribution Solutions Group had a return on equity of 9.02% and a net margin of 0.42%.The firm had revenue of $481.60 million for the quarter, compared to analysts' expectations of $496.30 million. As a group, equities analysts anticipate that Distribution Solutions Group will post 1.28 EPS for the current fiscal year.

Distribution Solutions Group announced that its board has initiated a stock buyback program on Monday, November 17th that permits the company to buyback $30.00 million in shares. This buyback authorization permits the company to repurchase up to 2.5% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's management believes its shares are undervalued.

Institutional Investors Weigh In On Distribution Solutions Group

Several hedge funds and other institutional investors have recently bought and sold shares of the business. BNP Paribas Financial Markets raised its position in shares of Distribution Solutions Group by 53.5% during the second quarter. BNP Paribas Financial Markets now owns 1,170 shares of the company's stock valued at $32,000 after buying an additional 408 shares during the last quarter. Quarry LP acquired a new stake in Distribution Solutions Group in the 3rd quarter valued at $42,000. Covestor Ltd grew its stake in Distribution Solutions Group by 27.3% during the third quarter. Covestor Ltd now owns 2,232 shares of the company's stock worth $67,000 after buying an additional 478 shares during the last quarter. State of Alaska Department of Revenue bought a new stake in Distribution Solutions Group during the 3rd quarter worth about $80,000. Finally, Tudor Investment Corp ET AL bought a new position in Distribution Solutions Group in the 3rd quarter valued at $226,000. 91.64% of the stock is currently owned by hedge funds and other institutional investors.

About Distribution Solutions Group

Distribution Solutions Group, Inc, a specialty distribution company, engages in the provision of value-added distribution solutions in North America, Europe, Asia, South America, and the Middle East. The company provides its solutions to the maintenance, repair, and operations (MRO); original equipment manufacturer (OEM); and industrial technology markets. It operates through three segments: Lawson, Gexpro Services, and TestEquity. The Lawson segment distributes of specialty products and services to the industrial, commercial, institutional, and government MRO market.

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