Bank of America Corp DE Makes New Investment in DNOW Inc. $DNOW

Key Points

• Bank of America initiated a DNOW position, purchasing 1.96 million shares worth approximately $25.4 million, or 1.08% of the company. Overall, hedge funds and other institutions own 97.63% of DNOW’s outstanding stock.
• DNOW exceeded quarterly expectations, reporting $0.12 in adjusted earnings per share versus $0.09 expected and $1.31 billion in revenue. Revenue increased 108.1% year over year, although the company posted a negative net margin.
• Analyst sentiment is mixed but leans positive, with a “Moderate Buy” consensus and an average price target of $18.20 versus a recent share price of $15.71. Meanwhile, investor lawsuits alleging inadequate disclosure of MRC Global integration risks could weigh on sentiment and increase potential costs.

Bank of America Corp DE purchased a new position in DNOW Inc. (NYSE:DNOW - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm purchased 1,955,141 shares of the oil and gas company's stock, valued at approximately $25,358,000. Bank of America Corp DE owned 1.08% of DNOW at the end of the most recent reporting period.

Other hedge funds also recently made changes to their positions in the company. Barrow Hanley Mewhinney & Strauss LLC purchased a new stake in shares of DNOW in the second quarter worth about $42,540,000. GSA Capital Partners LLP purchased a new position in DNOW during the second quarter valued at approximately $2,102,000. Engine Capital Management LP bought a new stake in DNOW during the 1st quarter worth approximately $61,525,000. Deutsche Bank AG bought a new stake in DNOW during the 2nd quarter worth approximately $2,985,000. Finally, Jupiter Topco LLC purchased a new stake in DNOW in the 2nd quarter worth approximately $1,629,000. 97.63% of the stock is currently owned by hedge funds and other institutional investors.

DNOW Price Performance

Shares of DNOW stock opened at $15.71 on Thursday. The firm has a market capitalization of $2.84 billion, a PE ratio of -14.69 and a beta of 0.87. The company has a current ratio of 2.14, a quick ratio of 1.06 and a debt-to-equity ratio of 0.23. DNOW Inc. has a 12 month low of $10.94 and a 12 month high of $17.26. The business's 50-day moving average price is $15.39 and its 200-day moving average price is $13.65.

DNOW (NYSE:DNOW - Get Free Report) last released its earnings results on Thursday, August 6th. The oil and gas company reported $0.12 earnings per share for the quarter, topping analysts' consensus estimates of $0.09 by $0.03. The company had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.27 billion. DNOW had a positive return on equity of 3.91% and a negative net margin of 4.58%.DNOW's quarterly revenue was up 108.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.27 EPS. Sell-side analysts forecast that DNOW Inc. will post 0.34 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of research firms have recently commented on DNOW. Weiss Ratings restated a "sell (d+)" rating on shares of DNOW in a research report on Monday, August 24th. Freedom Broker cut DNOW from a "buy" rating to a "hold" rating and set a $18.00 target price for the company. in a research report on Thursday, September 10th. Susquehanna upped their target price on DNOW from $16.00 to $19.00 and gave the stock a "positive" rating in a research note on Friday, August 7th. Freedom Capital upgraded DNOW to a "strong-buy" rating in a research report on Monday, June 22nd. Finally, Wall Street Zen upgraded shares of DNOW from a "sell" rating to a "hold" rating in a research report on Saturday, August 8th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, DNOW currently has an average rating of "Moderate Buy" and a consensus price target of $18.20.

More DNOW News

Here are the key news stories impacting DNOW this week:

• Positive Sentiment: DNOW is scheduled to participate in an investor conference, and a related analysis suggests the shares could be approximately 17% below estimated fair value. That potential undervaluation may support investor interest if management provides reassuring updates on integration, synergies, or financial performance. DNOW Heads To Investor Conference, Is It Still 17% Below Fair Value?
• Neutral Sentiment: Several law firms are soliciting investors to serve as lead plaintiff in a securities class action. The October 2, 2026 deadline applies to shareholders who owned DNOW stock as of August 5, 2025, and were entitled to vote at the September 9, 2025 special meeting. These notices repeat largely the same information and do not represent a court finding of liability. Rosen Law Firm Deadline Notice Portnoy Law Firm Class Action Notice
• Negative Sentiment: The lawsuits allege that DNOW’s merger proxy materials omitted or inadequately disclosed enterprise-resource-planning failures at MRC Global and related integration risks. Investors claim these omissions may have caused financial harm and allege violations of federal securities laws, including Sections 10(b) and 20(a) and Rule 10b-5. Continued legal publicity could pressure sentiment, increase potential costs, and raise questions about the expected benefits of the acquisition. Hagens Berman DNOW Investor Alert The Synergy Charade

About DNOW

DNOW Inc NYSE: DNOW is a global distributor of products and services used in the energy and industrial sectors. The company supplies equipment and materials for upstream, midstream and downstream oil and gas operations, as well as for industrial and utility applications.

Its offerings include pipes, valves, fittings, flanges, gaskets, tools, production equipment, artificial-lift products, safety supplies and other maintenance, repair and operating materials. DNOW also provides supply-chain management, inventory management, logistics, procurement and other technical and field-support services designed to help customers manage equipment sourcing and distribution.

Headquartered in Houston, Texas, DNOW serves customers through a network of distribution and service locations across North America and international markets.

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