DXP Enterprises (NASDAQ:DXPE) Shares Gap Down - Should You Sell?

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.

DXP Enterprises, Inc. (NASDAQ:DXPE - Get Free Report) shares gapped down before the market opened 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.

Analysts Set New Price Targets

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

DXP Enterprises Price Performance

The company has a market cap of $1.73 billion, a price-to-earnings ratio of 20.99 and a beta of 1.25. The company has a debt-to-equity ratio of 1.33, a quick ratio of 2.25 and a current ratio of 2.79. The company has a 50-day simple moving average of $92.98 and a 200-day simple moving average of $89.89.

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

Insider Transactions at DXP Enterprises

In other news, CMO Paz Maestas sold 3,000 shares of DXP Enterprises stock in a transaction that occurred on Wednesday, June 18th. The stock was sold at an average price of $79.09, for a total transaction of $237,270.00. Following the sale, the chief marketing officer owned 607,737 shares of the company's stock, valued at approximately $48,065,919.33. The trade was a 0.49% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, COO Nicholas Little sold 45,938 shares of DXP Enterprises stock in a transaction that occurred on Monday, June 30th. The shares were sold at an average price of $87.73, for a total value of $4,030,140.74. Following the sale, the chief operating officer directly owned 812,328 shares in the company, valued at approximately $71,265,535.44. This trade represents a 5.35% decrease in their position. The disclosure for this sale can be found here. Insiders sold 53,938 shares of company stock valued at $4,690,731 over the last quarter. Insiders own 22.70% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of DXPE. GAMMA Investing LLC increased its stake in shares of DXP Enterprises by 24.3% in the second 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 lifted its stake in shares of DXP Enterprises by 32.2% in the first quarter. CWM LLC now owns 1,487 shares of the industrial products company's stock valued at $122,000 after buying an additional 362 shares during the period. Lazard Asset Management LLC bought a new stake in shares of DXP Enterprises in the fourth quarter valued at about $159,000. Hsbc Holdings PLC acquired a new position in DXP Enterprises in the fourth quarter worth about $208,000. Finally, Janney Montgomery Scott LLC acquired a new position in DXP Enterprises in the first quarter worth about $210,000. 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).