DXP Enterprises (NASDAQ:DXPE) Hits New 12-Month High on Better-Than-Expected Earnings

Key Points

• DXP Enterprises shares reached a new 52-week high, trading as high as $186 after the company reported quarterly EPS of $1.76, beating estimates of $1.59, while revenue of $576.46 million exceeded the $543 million consensus.
• Analyst sentiment remains positive but has softened, with several firms downgrading the stock to “Hold.” Despite this, DXP retains a “Moderate Buy” consensus rating, although the average price target of $154 is below its recent trading level.
• Insiders recently sold shares, including transactions by the chief marketing officer and a director, while institutional investors own a significant 74.82% of the company and insiders hold 22%.

DXP Enterprises, Inc. (NASDAQ:DXPE - Get Free Report) hit a new 52-week high on Thursday following a stronger than expected earnings report. The company traded as high as $186.00 and last traded at $186.1020, with a volume of 69455 shares traded. The stock had previously closed at $168.37.

The industrial products company reported $1.76 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.59 by $0.17. DXP Enterprises had a return on equity of 18.16% and a net margin of 4.27%.The firm had revenue of $576.46 million during the quarter, compared to the consensus estimate of $543.00 million.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on DXPE. Wall Street Zen downgraded shares of DXP Enterprises from a "buy" rating to a "hold" rating in a research note on Saturday, June 6th. Zacks Research lowered shares of DXP Enterprises from a "strong-buy" rating to a "hold" rating in a research note on Monday, May 11th. Weiss Ratings cut shares of DXP Enterprises from a "buy (b)" rating to a "buy (b-)" rating in a research report on Tuesday, July 21st. Finally, Freedom Capital lowered shares of DXP Enterprises from a "strong-buy" rating to a "hold" rating in a report on Monday, May 11th. Two investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat, DXP Enterprises presently has a consensus rating of "Moderate Buy" and an average target price of $154.00.

Insider Activity

In related news, CMO Paz Maestas sold 10,000 shares of the stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $164.37, for a total value of $1,643,700.00. Following the completion of the transaction, the chief marketing officer directly owned 590,262 shares of the company's stock, valued at approximately $97,021,364.94. This represents a 1.67% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Timothy P. Halter sold 6,842 shares of the business's stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $141.59, for a total value of $968,758.78. Following the transaction, the director directly owned 30,000 shares in the company, valued at $4,247,700. This trade represents a 18.57% decrease in their position. The disclosure for this sale is available in the SEC filing. 22.00% of the stock is owned by company insiders.

Institutional Trading of DXP Enterprises

A number of institutional investors have recently bought and sold shares of DXPE. EverSource Wealth Advisors LLC raised its position in DXP Enterprises by 3,507.7% during the second quarter. EverSource Wealth Advisors LLC now owns 469 shares of the industrial products company's stock worth $41,000 after acquiring an additional 456 shares during the last quarter. KBC Group NV purchased a new position in shares of DXP Enterprises during the first quarter valued at approximately $51,000. Clearstead Advisors LLC lifted its stake in shares of DXP Enterprises by 164.5% during the 4th quarter. Clearstead Advisors LLC now owns 492 shares of the industrial products company's stock worth $54,000 after purchasing an additional 306 shares during the period. State of Wyoming acquired a new position in DXP Enterprises in the fourth quarter valued at $152,000. Finally, Laurel Wealth Advisors LLC acquired a new position in shares of DXP Enterprises in the 4th quarter valued at $154,000. 74.82% of the stock is currently owned by hedge funds and other institutional investors.

DXP Enterprises Stock Performance

The company has a debt-to-equity ratio of 1.60, a current ratio of 2.98 and a quick ratio of 2.56. The stock has a market cap of $2.90 billion, a PE ratio of 35.00 and a beta of 0.98. The stock has a 50-day simple moving average of $163.05 and a 200-day simple moving average of $151.36.

About DXP Enterprises

DXP Enterprises, Inc is a Houston, Texas–based industrial products and services distributor serving customers across North America. The company provides a broad portfolio of maintenance, repair and operations (MRO) supplies, including fluid power components, safety products, mechanical power transmission parts, and instrumentation. DXP's product offering spans well-recognized private brands as well as equipment and parts from leading global manufacturers, enabling clients in energy, heavy industrial and manufacturing sectors to source critical components from a single supplier.

Through its network of service centers and specialized repair facilities, DXP delivers inventory management programs, turnkey fluid power rebuilds and custom assembly solutions.

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