DNOW (NYSE:DNOW) Shares Gap Up After Earnings Beat

Key Points

• DNOW Inc. reported earnings of $0.27 per share, surpassing the consensus estimate of $0.22, which contributed to a significant gap up in share price from $15.24 to $16.24 before trading.
• The company's quarterly revenue decreased by 0.8% year-over-year, while its net margin and return on equity were recorded at 3.40% and 9.00% respectively.
• Despite the earnings beat, analysts have mixed views, with Susquehanna and Stifel Nicolaus lowering their price targets to $18.00, while Wall Street Zen upgraded DNOW to a "buy" rating.

DNOW Inc. (NYSE:DNOW - Get Free Report)'s share price gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $15.24, but opened at $16.24. DNOW shares last traded at $14.62, with a volume of 532,489 shares.

The oil and gas company reported $0.27 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.22 by $0.05. The company had revenue of $628.00 million during the quarter, compared to the consensus estimate of $612.60 million. DNOW had a return on equity of 8.97% and a net margin of 3.45%. DNOW's revenue for the quarter was down .8% on a year-over-year basis. During the same period in the previous year, the business earned $0.25 EPS.

Analyst Upgrades and Downgrades

DNOW has been the subject of a number of recent analyst reports. Stifel Nicolaus decreased their price target on DNOW from $19.00 to $18.00 and set a "buy" rating for the company in a report on Monday, July 21st. Susquehanna cut their target price on DNOW from $19.00 to $18.00 and set a "neutral" rating on the stock in a research report on Monday, April 14th. Finally, Wall Street Zen upgraded DNOW from a "hold" rating to a "buy" rating in a research report on Saturday, April 26th.

Institutional Trading of DNOW

Hedge funds and other institutional investors have recently made changes to their positions in the company. Brooklyn Investment Group increased its position in shares of DNOW by 2,650.0% during the first quarter. Brooklyn Investment Group now owns 1,705 shares of the oil and gas company's stock worth $29,000 after purchasing an additional 1,643 shares in the last quarter. GAMMA Investing LLC increased its position in shares of DNOW by 122.1% during the first quarter. GAMMA Investing LLC now owns 1,859 shares of the oil and gas company's stock worth $32,000 after purchasing an additional 1,022 shares in the last quarter. Headlands Technologies LLC increased its position in shares of DNOW by 21,663.6% during the first quarter. Headlands Technologies LLC now owns 2,394 shares of the oil and gas company's stock worth $41,000 after purchasing an additional 2,383 shares in the last quarter. New Age Alpha Advisors LLC acquired a new stake in shares of DNOW during the first quarter worth about $58,000. Finally, BI Asset Management Fondsmaeglerselskab A S acquired a new stake in shares of DNOW during the first quarter worth about $63,000. Institutional investors and hedge funds own 97.63% of the company's stock.

DNOW Stock Performance

The stock has a market cap of $1.60 billion, a price-to-earnings ratio of 19.71 and a beta of 1.13. The company has a 50-day moving average of $14.82 and a 200-day moving average of $15.27.

DNOW Company Profile

DNOW Inc distributes downstream energy and industrial products for petroleum refining, chemical processing, LNG terminals, power generation utilities, and customer on-site locations in the United States, Canada, and internationally. The company provides consumable maintenance, repair, and operating supplies; pipes, manual and automated valves, fittings, flanges, gaskets, fasteners, electrical instrumentations, artificial lift, pumping solutions, valve actuation and modular process, and measurement and control equipment; and mill supplies, tools, safety supplies, and personal protective equipment, as well as artificial lift systems, coatings, and miscellaneous expendable items.