DXP Enterprises (NASDAQ:DXPE) Shares Gap Down - What's Next?

Key Points

• DXP Enterprises' shares gapped down from a previous close of $112.38 to open at $106.00 before trading at $108.09, indicating a notable fluctuation in stock price.
• Wall Street Zen downgraded DXP Enterprises from a "buy" rating to a "hold" rating, marking a significant shift in analyst sentiment.
• Insider trading activity included COO Nicholas Little selling 45,938 shares for over $4 million, reflecting a 5.35% decrease in his holdings.

Shares of DXP Enterprises, Inc. (NASDAQ:DXPE - Get Free Report) gapped down prior to trading on Thursday . The stock had previously closed at $112.38, but opened at $106.00. DXP Enterprises shares last traded at $108.09, with a volume of 62,322 shares.

Analyst Ratings Changes

Separately, Wall Street Zen cut shares of DXP Enterprises from a "buy" rating to a "hold" rating in a report on Friday, May 16th.

DXP Enterprises Trading Up 4.9%

The firm has a market cap of $1.81 billion, a P/E ratio of 22.03 and a beta of 1.25. The company has a quick ratio of 2.33, a current ratio of 2.79 and a debt-to-equity ratio of 1.33. The firm's 50-day simple moving average is $93.64 and its 200 day simple moving average is $89.73.

DXP Enterprises (NASDAQ:DXPE - Get Free Report) last announced its quarterly earnings data on Wednesday, August 6th. The industrial products company reported $1.43 earnings per share for the quarter, beating the consensus estimate of $1.39 by $0.04. The firm had revenue of $498.68 million during the quarter, compared to the consensus estimate of $499.00 million. DXP Enterprises had a return on equity of 20.94% and a net margin of 4.52%. As a group, analysts expect that DXP Enterprises, Inc. will post 4.07 earnings per share for the current year.

Insiders Place Their Bets

In related news, COO Nicholas Little sold 45,938 shares of the stock in a transaction on Monday, June 30th. The stock was sold at an average price of $87.73, for a total transaction of $4,030,140.74. Following the sale, the chief operating officer directly owned 812,328 shares of the company's stock, valued at $71,265,535.44. This trade represents a 5.35% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CMO Paz Maestas sold 2,000 shares of the stock in a transaction dated Tuesday, June 24th. The shares were sold at an average price of $81.16, for a total value of $162,320.00. Following the completion of the transaction, the chief marketing officer directly owned 605,737 shares in the company, valued at approximately $49,161,614.92. This represents a 0.33% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 53,938 shares of company stock worth $4,690,731. Insiders own 22.40% of the company's stock.

Hedge Funds Weigh In On DXP Enterprises

Institutional investors have recently added to or reduced their stakes in the company. GAMMA Investing LLC lifted its stake in shares of DXP Enterprises by 24.3% during the 2nd quarter. GAMMA Investing LLC now owns 634 shares of the industrial products company's stock worth $56,000 after acquiring an additional 124 shares during the last quarter. CWM LLC grew its stake in DXP Enterprises by 32.2% during the 1st quarter. CWM LLC now owns 1,487 shares of the industrial products company's stock worth $122,000 after buying an additional 362 shares during the last quarter. Lazard Asset Management LLC purchased a new stake in DXP Enterprises during the 4th quarter valued at about $159,000. Hsbc Holdings PLC acquired a new position in shares of DXP Enterprises in the 4th quarter valued at about $208,000. Finally, Janney Montgomery Scott LLC acquired a new position in DXP Enterprises in the 1st quarter worth about $210,000. Hedge funds and other institutional investors own 74.82% of the company's stock.

DXP Enterprises Company Profile

DXP Enterprises, Inc, together with its subsidiaries, engages in distributing maintenance, repair, and operating (MRO) products, equipment, and services in the United States and Canada. It operates through three segments: Service Centers (SC), Supply Chain Services (SCS), and Innovative Pumping Solutions (IPS).