DXP Enterprises (NASDAQ:DXPE) Shares Gap Down After Earnings Miss

Key Points

• Shares tumbled ~19% after DXP reported Q1 EPS of $1.26 vs. $1.29 estimate, with the stock gapping down from $181.51 to an open of $161.82 and last trading near $155.61 on heavy volume.
• Analysts remain generally positive with an average rating of "Buy" and a consensus price target of $154, supported by recent upgrades from Wall Street Zen and Zacks.
• Insiders own 22.7% of the company and Director Joseph R. Mannes sold 1,500 shares at $137.95, while institutional ownership is about 74.8% after several reported new stakes.

Shares of DXP Enterprises, Inc. (NASDAQ:DXPE - Get Free Report) gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $181.51, but opened at $161.82. DXP Enterprises shares last traded at $155.6130, with a volume of 93,649 shares trading hands.

The industrial products company reported $1.26 earnings per share for the quarter, missing the consensus estimate of $1.29 by ($0.03). DXP Enterprises had a return on equity of 18.83% and a net margin of 4.40%.

Analyst Upgrades and Downgrades

DXPE has been the topic of a number of recent research reports. Wall Street Zen raised shares of DXP Enterprises from a "hold" rating to a "buy" rating in a research note on Saturday, March 28th. Loop Capital set a $154.00 price target on shares of DXP Enterprises in a research report on Monday, March 2nd. Finally, Zacks Research raised shares of DXP Enterprises from a "hold" rating to a "strong-buy" rating in a research report on Thursday, March 12th. One investment analyst has rated the stock with a Strong Buy rating and two have given a Buy rating to the company. Based on data from MarketBeat, DXP Enterprises currently has an average rating of "Buy" and a consensus price target of $154.00.

Insider Transactions at DXP Enterprises

In other news, Director Joseph R. Mannes sold 1,500 shares of DXP Enterprises stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $137.95, for a total value of $206,925.00. Following the completion of the transaction, the director owned 13,964 shares of the company's stock, valued at $1,926,333.80. This trade represents a 9.70% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Insiders own 22.70% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Nordea Investment Management AB bought a new stake in shares of DXP Enterprises during the 4th quarter worth about $1,597,000. SG Americas Securities LLC boosted its holdings in shares of DXP Enterprises by 646.7% during the 4th quarter. SG Americas Securities LLC now owns 15,143 shares of the industrial products company's stock worth $1,663,000 after buying an additional 13,115 shares during the period. Oliver Luxxe Assets LLC bought a new stake in DXP Enterprises in the 4th quarter valued at about $2,955,000. Danske Bank A S acquired a new position in shares of DXP Enterprises in the 4th quarter valued at approximately $4,864,000. Finally, Intrua Financial LLC acquired a new position in shares of DXP Enterprises in the 3rd quarter valued at approximately $1,848,000. Institutional investors own 74.82% of the company's stock.

DXP Enterprises Stock Down 19.0%

The firm's 50-day moving average price is $147.95 and its 200 day moving average price is $127.27. The company has a market capitalization of $2.28 billion, a price-to-earnings ratio of 27.41 and a beta of 1.07. The company has a current ratio of 3.34, a quick ratio of 2.94 and a debt-to-equity ratio of 1.64.

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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