Rubric Capital Management LP Invests $15.10 Million in DNOW Inc. $DNOW

Key Points

• Rubric Capital Management initiated a $15.1 million position in DNOW, buying 1.27 million shares for a 0.69% stake. Institutional investors collectively own 97.63% of the company, with Vanguard among the largest holders.
• DNOW reported quarterly revenue of $1.18 billion, up 97.5% year over year and above estimates, but earnings of $0.01 per share missed consensus by $0.04. Analysts expect approximately $0.31 in full-year EPS.
• DNOW shares opened at $14.18, while analyst sentiment remains a “Moderate Buy” with a consensus price target of $17.00, despite mixed ratings ranging from Strong Buy to Sell.

Rubric Capital Management LP purchased a new stake in DNOW Inc. (NYSE:DNOW - Free Report) in the 1st quarter, according to its most recent disclosure with the SEC. The fund purchased 1,267,527 shares of the oil and gas company's stock, valued at approximately $15,096,000. Rubric Capital Management LP owned 0.69% of DNOW as of its most recent filing with the SEC.

A number of other institutional investors have also modified their holdings of the business. Vanguard Group Inc. grew its holdings in shares of DNOW by 66.1% during the fourth quarter. Vanguard Group Inc. now owns 19,498,204 shares of the oil and gas company's stock valued at $258,351,000 after purchasing an additional 7,762,071 shares during the last quarter. Pullen Investment Management LLC acquired a new stake in shares of DNOW during the 4th quarter worth approximately $2,177,000. BOKF NA lifted its holdings in shares of DNOW by 13,223.9% in the 4th quarter. BOKF NA now owns 393,456 shares of the oil and gas company's stock worth $5,213,000 after purchasing an additional 390,503 shares during the last quarter. Caisse Des Depots ET Consignations bought a new stake in shares of DNOW in the 4th quarter worth approximately $596,000. Finally, Bailard Inc. acquired a new position in DNOW during the 4th quarter valued at approximately $1,820,000. Institutional investors own 97.63% of the company's stock.

DNOW Stock Down 1.6%

DNOW stock opened at $14.18 on Tuesday. 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 price-to-earnings ratio of -19.42 and a beta of 0.83. The firm's 50-day moving average is $13.38 and its two-hundred day moving average is $13.29. The company has a current ratio of 2.42, a quick ratio of 1.14 and a debt-to-equity ratio of 0.27.

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

Wall Street Analyst Weigh In

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

DNOW 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.