Engine Capital Management LP Purchases New Stake in DNOW Inc. $DNOW

Key Points

• Engine Capital Management acquired 5.17 million DNOW shares worth approximately $61.5 million, making the stock 7.4% of its portfolio and giving it an estimated 2.83% ownership stake in DNOW.
• DNOW reported quarterly revenue of $1.18 billion, up 97.5% year over year and above estimates, but earnings per share of $0.01 missed the $0.05 consensus forecast.
• Analyst sentiment is mixed but averages a “Moderate Buy” rating, with a $17.00 average price target versus DNOW’s recent $14.18 share price; institutional investors and hedge funds own 97.63% of the stock.

Engine Capital Management LP acquired a new position in DNOW Inc. (NYSE:DNOW - Free Report) in the 1st quarter, according to its most recent Form 13F filing with the SEC. The institutional investor acquired 5,165,862 shares of the oil and gas company's stock, valued at approximately $61,525,000. DNOW makes up 7.4% of Engine Capital Management LP's portfolio, making the stock its 4th largest position. Engine Capital Management LP owned about 2.83% of DNOW at the end of the most recent reporting period.

A number of other institutional investors have also recently bought and sold shares of the business. Blue Trust Inc. acquired a new position in shares of DNOW in the 4th quarter valued at about $25,000. Quarry LP boosted its holdings in shares of DNOW by 712.6% during the fourth quarter. Quarry LP now owns 1,942 shares of the oil and gas company's stock worth $26,000 after purchasing an additional 1,703 shares during the period. EverSource Wealth Advisors LLC boosted its holdings in shares of DNOW by 190.5% during the second quarter. EverSource Wealth Advisors LLC now owns 2,423 shares of the oil and gas company's stock worth $36,000 after purchasing an additional 1,589 shares during the period. Clearstead Advisors LLC grew its position in DNOW by 132.5% during the fourth quarter. Clearstead Advisors LLC now owns 2,427 shares of the oil and gas company's stock valued at $32,000 after purchasing an additional 1,383 shares in the last quarter. Finally, Arax Advisory Partners grew its position in DNOW by 336.3% during the fourth quarter. Arax Advisory Partners now owns 2,797 shares of the oil and gas company's stock valued at $37,000 after purchasing an additional 2,156 shares in the last quarter. 97.63% of the stock is currently owned by institutional investors and hedge funds.

DNOW Trading Down 1.6%

NYSE:DNOW opened at $14.18 on Tuesday. The stock's 50 day moving average price is $13.38 and its 200 day moving average price is $13.29. DNOW Inc. has a 52 week low of $10.94 and a 52 week high of $17.26. The company has a market capitalization of $2.59 billion, a P/E ratio of -19.42 and a beta of 0.83. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.14 and a current ratio of 2.42.

DNOW (NYSE:DNOW - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The oil and gas company reported $0.01 earnings per share for the quarter, missing the consensus estimate of $0.05 by ($0.04). The business had revenue of $1.18 billion for the quarter, compared to the consensus estimate of $1.08 billion. DNOW had a negative net margin of 4.14% and a positive return on equity of 4.94%. DNOW's revenue was up 97.5% compared to the same quarter last year. During the same period in the previous year, the business posted $0.22 EPS. On average, research analysts forecast that DNOW Inc. will post 0.31 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the stock. Weiss Ratings reiterated a "sell (d+)" rating on shares of DNOW in a research report on Wednesday, May 27th. Wall Street Zen cut shares of DNOW from a "hold" rating to a "sell" rating in a report on Saturday, May 9th. Freedom Capital raised shares of DNOW to a "strong-buy" rating in a research note on Monday, June 22nd. Zacks Research upgraded DNOW from a "strong sell" rating to a "hold" rating in a report on Friday, May 22nd. Finally, DA Davidson assumed coverage on DNOW in a research report on Tuesday, June 16th. They set a "buy" rating and a $17.00 price objective for the company. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, DNOW has an average rating of "Moderate Buy" and an average target price of $17.00.

About DNOW

DistributionNOW NYSE: DNOW is a global distributor of energy and industrial products, serving a broad range of end-markets including oil and gas, petrochemical, power generation, and industrial manufacturing. Headquartered in Houston, Texas, the company provides solutions across the life cycle of energy and industrial assets, with an emphasis on safety, reliability and operational efficiency.

The company’s core product portfolio includes piping systems and related components (such as valves, fittings, flanges and gaskets), instrumentation, electrical and automation equipment, fasteners, industrial safety supplies, chemicals and composite products.

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