DNOW (NYSE:DNOW) Upgraded at Wall Street Zen

Key Points

• Wall Street Zen upgraded DNOW from “sell” to “hold,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $17.75.
• DNOW exceeded quarterly expectations, reporting $0.12 in adjusted EPS versus a $0.09 consensus and $1.31 billion in revenue versus $1.27 billion expected; revenue increased 108% year over year.
• Institutional ownership stands at 97.63%, with major investors including BlackRock, Pzena Investment Management, Deutsche Bank and Bank of New York Mellon recently initiating positions.

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

DNOW has been the topic of a number of other research reports. DA Davidson assumed coverage on DNOW in a research report on Tuesday, June 16th. They set a "buy" rating and a $17.00 price target on the stock. Freedom Capital raised DNOW to a "strong-buy" rating in a research report on Monday, June 22nd. Susquehanna raised their price objective on DNOW from $16.00 to $19.00 and gave the company a "positive" rating in a research report on Friday. Zacks Research raised shares of DNOW from a "strong sell" rating to a "hold" rating in a research report on Friday, May 22nd. Finally, Weiss Ratings restated a "sell (d+)" rating on shares of DNOW in a research note on Wednesday, May 27th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, DNOW has an average rating of "Moderate Buy" and an average target price of $17.75.

DNOW Trading Up 7.3%

DNOW stock opened at $16.52 on Friday. The company has a market capitalization of $3.02 billion, a PE ratio of -15.44 and a beta of 0.82. DNOW has a 12 month low of $10.94 and a 12 month high of $17.26. The firm's 50-day moving average is $13.62 and its 200 day moving average is $13.34. The company has a debt-to-equity ratio of 0.23, a current ratio of 2.14 and a quick ratio of 1.14.

DNOW (NYSE:DNOW - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The oil and gas company reported $0.12 earnings per share for the quarter, beating analysts' consensus estimates of $0.09 by $0.03. The company had revenue of $1.31 billion during the quarter, compared to analyst estimates of $1.27 billion. DNOW had a negative net margin of 4.58% and a positive return on equity of 3.91%. The firm's revenue for the quarter was up 108.1% on a year-over-year basis. During the same quarter last year, the business posted $0.27 EPS. On average, research analysts anticipate that DNOW will post 0.31 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in DNOW. Pzena Investment Management LLC acquired a new stake in shares of DNOW during the second quarter worth $37,528,000. BlackRock Inc. purchased a new stake in shares of DNOW during the second quarter valued at $374,942,000. Deutsche Bank AG acquired a new position in shares of DNOW in the 2nd quarter valued at $2,985,000. Bank of New York Mellon Corp acquired a new position in shares of DNOW in the 2nd quarter valued at $14,886,000. Finally, State of Wyoming acquired a new stake in DNOW during the 2nd quarter worth about $127,000. Hedge funds and other institutional investors own 97.63% of the company's stock.

DNOW News Roundup

Here are the key news stories impacting DNOW this week:

• Positive Sentiment: Quarterly results exceeded expectations: Q2 revenue rose 108% year over year to $1.307 billion, ahead of the approximately $1.27 billion consensus estimate. Adjusted EPS was $0.12, beating forecasts ranging from $0.08 to $0.09, although the company reported a GAAP net loss of $21 million, or $0.11 per share. DNOW Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Operating momentum improved: Revenue increased 10% sequentially, U.S. revenue grew 13%, and adjusted EBITDA climbed 54% sequentially to $60 million as integration and cost-management efforts advanced. Management also said U.S. midstream revenue exceeded a $1 billion annualized rate for the first time. DNOW Reports Second Quarter 2026 Results
• Positive Sentiment: Cash flow and capital returns strengthened: Operating cash flow reached a record $133 million, while DNOW repurchased $25 million of stock during the quarter and $75 million year to date under its $160 million authorization. Net debt leverage improved to 1.7 times. DNOW Reports Strong Second Quarter Results
• Positive Sentiment: Analyst sentiment improved: Susquehanna raised its price target from $16 to $19 and upgraded DNOW to “positive,” citing the company’s stronger sales and raised 2026 revenue and cash-flow outlook. Benzinga Analyst Update
• Neutral Sentiment: Profitability remains mixed: Reported gross margin was 18.6%, below 20.5% a year earlier, and adjusted EBITDA represented 4.6% of revenue. Investors may continue to monitor whether the higher sales volume translates into sustainable GAAP profitability.
• Negative Sentiment: Legal overhang persists: Rosen Law Firm and Bronstein, Gewirtz & Grossman announced securities class actions alleging investor harm related to DNOW’s 2025 special meeting disclosures. The developments could create litigation costs and reputational risk, although they have not offset the positive earnings reaction. DNOW Securities Class Action

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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