DNOW (NYSE:DNOW) Cut to Sell at Wall Street Zen

Key Points

• Wall Street Zen downgraded DNOW from hold to sell, adding to a mixed analyst backdrop that includes other recent rating cuts and an average Hold rating with a $17.00 price target.
• DNOW’s latest earnings were mixed: revenue came in at $1.18 billion, above estimates, but EPS of $0.01 missed consensus and fell sharply from $0.22 a year earlier.
• The stock opened around $13.08 and the company remains well-owned by institutions, while a securities class action investigation and weak profitability metrics may keep pressure on sentiment.

DNOW (NYSE:DNOW - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report released on Saturday.

DNOW has been the topic of several other research reports. Stifel Nicolaus cut their target price on DNOW from $18.00 to $16.00 and set a "buy" rating on the stock in a research report on Monday, February 23rd. Zacks Research cut DNOW from a "hold" rating to a "strong sell" rating in a research report on Tuesday, March 24th. Finally, Weiss Ratings cut DNOW from a "hold (c)" rating to a "sell (d+)" rating in a research report on Friday, February 27th. Two equities research analysts have rated the stock with a Buy rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Hold" and an average price target of $17.00.

DNOW Stock Up 0.3%

Shares of NYSE:DNOW opened at $13.08 on Friday. The stock has a market cap of $2.43 billion, a price-to-earnings ratio of -17.92 and a beta of 0.85. The company has a quick ratio of 1.11, a current ratio of 2.34 and a debt-to-equity ratio of 0.18. DNOW has a 12-month low of $10.94 and a 12-month high of $17.26. The business's 50 day moving average is $12.11 and its 200 day moving average is $13.48.

DNOW (NYSE:DNOW - Get Free Report) last announced its earnings results on Thursday, May 7th. The oil and gas company reported $0.01 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.05 by ($0.04). The company had revenue of $1.18 billion for the quarter, compared to analysts' expectations of $1.08 billion. DNOW had a negative net margin of 4.14% and a positive return on equity of 5.43%. The firm's quarterly revenue was up 97.5% on a year-over-year basis. During the same period in the previous year, the firm earned $0.22 EPS. On average, sell-side analysts forecast that DNOW will post 0.66 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of DNOW. Royal Bank of Canada boosted its position in DNOW by 28.2% in the first quarter. Royal Bank of Canada now owns 35,783 shares of the oil and gas company's stock worth $611,000 after purchasing an additional 7,867 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in DNOW by 53.4% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 358,708 shares of the oil and gas company's stock worth $6,127,000 after purchasing an additional 124,797 shares during the last quarter. Norges Bank purchased a new position in DNOW in the second quarter worth $1,192,000. Quantbot Technologies LP purchased a new position in DNOW in the second quarter worth $283,000. Finally, Invesco Ltd. boosted its position in DNOW by 31.1% in the second quarter. Invesco Ltd. now owns 792,481 shares of the oil and gas company's stock worth $11,752,000 after purchasing an additional 187,878 shares during the last quarter. Hedge funds and other institutional investors own 97.63% of the company's stock.

Trending Headlines about DNOW

Here are the key news stories impacting DNOW this week:

• Positive Sentiment: DNOW reported first-quarter revenue of $1.18 billion, which came in above analyst expectations of $1.08 billion and rose sharply year over year, suggesting solid demand and helping support the stock. DNOW Reports First Quarter 2026 Results
• Positive Sentiment: The company also highlighted its first-quarter 2026 results and midstream expansion plans, which may reinforce the longer-term growth story for investors. Assessing DNOW (DNOW) Valuation After Recent Share Price Momentum And Midstream Expansion Plans
• Neutral Sentiment: Several earnings recap articles and the earnings call presentation are drawing attention to the quarter, but they largely repeat the same key takeaways: strong revenue growth, but weaker profitability. DNOW Inc. 2026 Q1 - Results - Earnings Call Presentation
• Neutral Sentiment: Market commentary notes that DNOW beat on revenue but missed earnings estimates, which is a mixed signal for the stock. DNOW’s NYSE: DNOW Q1 CY2026: Beats On Revenue
• Negative Sentiment: DNOW posted earnings of $0.01 per share, below the $0.05 consensus estimate and far under last year’s $0.22, raising concerns about profitability and margin pressure. DNOW (DNOW) Q1 Earnings Lag Estimates
• Negative Sentiment: Rosen Law Firm announced and reiterated a securities class action investigation into whether DNOW may have issued misleading business information, which can add legal overhang and pressure sentiment. ROSEN, LEADING INVESTOR COUNSEL, Encourages DNOW Inc. Investors to Inquire About Securities Class Action Investigation - DNOW

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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