Vanguard Group Inc. Acquires 7,762,071 Shares of DNOW Inc. $DNOW

Key Points

• Vanguard Group significantly increased its DNOW stake in the fourth quarter, buying 7.76 million additional shares and lifting its holdings by 66.1% to 19.5 million shares, worth about $258.4 million.
• DNOW’s latest quarter was mixed: revenue jumped 97.5% year over year to $1.18 billion and topped estimates, but earnings came in at just $0.01 per share, below expectations and sharply down from last year.
• Investor sentiment remains cautious as analyst ratings are split and a securities class action investigation is underway, adding legal uncertainty despite the company’s strong revenue growth and midstream expansion plans.

Vanguard Group Inc. raised its holdings in shares of DNOW Inc. (NYSE:DNOW - Free Report) by 66.1% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 19,498,204 shares of the oil and gas company's stock after purchasing an additional 7,762,071 shares during the quarter. Vanguard Group Inc. owned 18.57% of DNOW worth $258,351,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also made changes to their positions in the company. Blue Trust Inc. bought a new stake in shares of DNOW during the fourth quarter worth $25,000. EverSource Wealth Advisors LLC increased its stake 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 valued at $36,000 after buying an additional 1,589 shares during the period. Parkside Financial Bank & Trust increased its stake in shares of DNOW by 2,101.7% during the third quarter. Parkside Financial Bank & Trust now owns 2,620 shares of the oil and gas company's stock valued at $40,000 after buying an additional 2,501 shares during the period. Wealth Enhancement Advisory Services LLC purchased a new position in shares of DNOW during the third quarter valued at $44,000. Finally, Investors Research Corp increased its stake in shares of DNOW by 61.1% during the fourth quarter. Investors Research Corp now owns 3,001 shares of the oil and gas company's stock valued at $40,000 after buying an additional 1,138 shares during the period. 97.63% of the stock is currently owned by institutional investors.

Trending Headlines about DNOW

Here are the key news stories impacting DNOW this week:

• Positive Sentiment: DNOW reported first-quarter revenue of $1.18 billion, which came in above analyst expectations of $1.08 billion and rose sharply year over year, suggesting solid demand and helping support the stock. DNOW Reports First Quarter 2026 Results
• Positive Sentiment: The company also highlighted its first-quarter 2026 results and midstream expansion plans, which may reinforce the longer-term growth story for investors. Assessing DNOW (DNOW) Valuation After Recent Share Price Momentum And Midstream Expansion Plans
• Neutral Sentiment: Several earnings recap articles and the earnings call presentation are drawing attention to the quarter, but they largely repeat the same key takeaways: strong revenue growth, but weaker profitability. DNOW Inc. 2026 Q1 - Results - Earnings Call Presentation
• Neutral Sentiment: Market commentary notes that DNOW beat on revenue but missed earnings estimates, which is a mixed signal for the stock. DNOW’s NYSE: DNOW Q1 CY2026: Beats On Revenue
• Negative Sentiment: DNOW posted earnings of $0.01 per share, below the $0.05 consensus estimate and far under last year’s $0.22, raising concerns about profitability and margin pressure. DNOW (DNOW) Q1 Earnings Lag Estimates
• Negative Sentiment: Rosen Law Firm announced and reiterated a securities class action investigation into whether DNOW may have issued misleading business information, which can add legal overhang and pressure sentiment. ROSEN, LEADING INVESTOR COUNSEL, Encourages DNOW Inc. Investors to Inquire About Securities Class Action Investigation - DNOW

DNOW Price Performance

DNOW opened at $13.08 on Friday. The business's 50-day moving average is $12.11 and its two-hundred day moving average is $13.48. DNOW Inc. has a 1 year low of $10.94 and a 1 year high of $17.26. The company has a debt-to-equity ratio of 0.18, a current ratio of 2.34 and a quick ratio of 1.11. The firm has a market capitalization of $2.43 billion, a PE ratio of -17.92 and a beta of 0.85.

DNOW (NYSE:DNOW - Get Free Report) last posted its earnings results 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 5.43%. The company had revenue of $1.18 billion during the quarter, compared to analysts' expectations of $1.08 billion. During the same quarter last year, the firm earned $0.22 EPS. DNOW's revenue for the quarter was up 97.5% on a year-over-year basis. Research analysts anticipate that DNOW Inc. will post 0.66 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

DNOW has been the topic of several research reports. Zacks Research lowered DNOW from a "hold" rating to a "strong sell" rating in a research note on Tuesday, March 24th. Wall Street Zen lowered DNOW from a "hold" rating to a "sell" rating in a research note on Saturday. Weiss Ratings lowered DNOW from a "hold (c)" rating to a "sell (d+)" rating in a research note on Friday, February 27th. Finally, Stifel Nicolaus cut their price target on DNOW from $18.00 to $16.00 and set a "buy" rating on the stock in a research note on Monday, February 23rd. Two analysts have rated the stock with a Buy rating and two have given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $17.00.

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.

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