Penn Capital Management Company LLC Trims Holdings in DNOW Inc. $DNOW

Key Points

• Penn Capital Management cut its DNOW stake by 43.1% in the second quarter, selling 508,171 shares and retaining 669,753 shares valued at approximately $8.7 million.
• Institutional ownership remains high at 97.63%, with BlackRock establishing a new position and Wellington, Vanguard, Dimensional Fund Advisors, and Boston Partners increasing their holdings.
• DNOW beat quarterly expectations with EPS of $0.12 versus $0.09 expected and revenue of $1.31 billion, up 108.1% year over year. Analysts’ average rating is “Moderate Buy”, with an average price target of $18.25.

Penn Capital Management Company LLC lowered its stake in shares of DNOW Inc. (NYSE:DNOW - Free Report) by 43.1% in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 669,753 shares of the oil and gas company's stock after selling 508,171 shares during the quarter. Penn Capital Management Company LLC owned approximately 0.37% of DNOW worth $8,703,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also made changes to their positions in the stock. BlackRock Inc. bought a new position in DNOW during the 2nd quarter valued at $374,942,000. Wellington Management Group LLP increased its position in shares of DNOW by 15.6% in the 2nd quarter. Wellington Management Group LLP now owns 19,513,068 shares of the oil and gas company's stock worth $253,084,000 after purchasing an additional 2,633,894 shares during the last quarter. Vanguard Group Inc. increased its position in shares of DNOW by 66.1% in the 4th quarter. Vanguard Group Inc. now owns 19,498,204 shares of the oil and gas company's stock worth $258,351,000 after purchasing an additional 7,762,071 shares during the last quarter. Dimensional Fund Advisors LP raised its stake in shares of DNOW by 60.8% in the 4th quarter. Dimensional Fund Advisors LP now owns 10,374,585 shares of the oil and gas company's stock valued at $137,466,000 after purchasing an additional 3,920,731 shares in the last quarter. Finally, Boston Partners raised its stake in shares of DNOW by 66.0% in the 4th quarter. Boston Partners now owns 7,859,416 shares of the oil and gas company's stock valued at $104,171,000 after purchasing an additional 3,124,280 shares in the last quarter. Institutional investors own 97.63% of the company's stock.

DNOW Stock Down 2.0%

Shares of NYSE:DNOW opened at $15.95 on Friday. The stock has a market capitalization of $2.88 billion, a price-to-earnings ratio of -14.91 and a beta of 0.82. DNOW Inc. has a 1-year low of $10.94 and a 1-year high of $17.26. The company's fifty day moving average is $14.40 and its two-hundred day moving average is $13.45. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.06 and a current ratio of 2.14.

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

Analysts Set New Price Targets

Several brokerages have recently commented on DNOW. Zacks Research raised shares of DNOW from a "strong sell" rating to a "hold" rating in a research report on Friday, May 22nd. Freedom Capital raised DNOW to a "strong-buy" rating in a report on Monday, June 22nd. Wall Street Zen upgraded DNOW from a "sell" rating to a "hold" rating in a research note on Saturday, August 8th. DA Davidson increased their target price on DNOW from $17.00 to $19.00 and gave the stock a "buy" rating in a report on Monday, August 10th. Finally, Susquehanna lifted their target price on DNOW from $16.00 to $19.00 and gave the stock a "positive" rating in a research report on Friday, August 7th. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, DNOW has an average rating of "Moderate Buy" and an average target price of $18.25.

DNOW Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source