DNOW (NYSE:DNOW) Shares Gap Up After Better-Than-Expected Earnings

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 before the market opened on Wednesday following a stronger than expected earnings report. 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 trading hands.

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

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on DNOW shares. Stifel Nicolaus dropped their target price on shares of DNOW from $19.00 to $18.00 and set a "buy" rating on the stock in a report on Monday, July 21st. Wall Street Zen upgraded shares of DNOW from a "hold" rating to a "buy" rating in a report on Saturday, April 26th. Finally, Susquehanna decreased their target price on shares of DNOW from $19.00 to $18.00 and set a "neutral" rating for the company in a research report on Monday, April 14th.

Institutional Investors Weigh In On DNOW

Several hedge funds and other institutional investors have recently made changes to their positions in DNOW. Allspring Global Investments Holdings LLC bought a new stake in DNOW in the 1st quarter worth about $220,000. GAMMA Investing LLC grew its position in DNOW by 122.1% in the 1st 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. Principal Financial Group Inc. grew its position in DNOW by 2.5% in the 1st quarter. Principal Financial Group Inc. now owns 526,101 shares of the oil and gas company's stock worth $8,986,000 after purchasing an additional 12,797 shares in the last quarter. CWM LLC grew its position in DNOW by 111.0% in the 1st quarter. CWM LLC now owns 6,726 shares of the oil and gas company's stock worth $115,000 after purchasing an additional 3,539 shares in the last quarter. Finally, Envestnet Portfolio Solutions Inc. bought a new stake in DNOW in the 1st quarter worth about $250,000. 97.63% of the stock is owned by institutional investors.

DNOW Trading Up 0.7%

The stock's 50-day simple moving average is $14.82 and its 200-day simple moving average is $15.28. The firm has a market capitalization of $1.60 billion, a P/E ratio of 19.71 and a beta of 1.13.

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.