DNOW (NYSE:DNOW) Share Price Breaks Above 50 Day Moving Average - What's Next?

Key Points

• DNOW shares moved above their 50-day moving average of $15.82, reaching an intraday high of $16.40 before last trading at $16.145.
• Analysts have a consensus “Moderate Buy” rating and an average price target of $18.20; recent target increases include Susquehanna and DA Davidson, both to $19.
• In its latest reported quarter, DNOW posted EPS of $0.12, above the $0.09 estimate, and revenue of $1.31 billion, up 108.1% year over year.

DNOW Inc. (NYSE:DNOW - Get Free Report) crossed above its 50-day moving average during trading on Tuesday. The stock has a 50-day moving average of $15.82 and traded as high as $16.40. DNOW shares last traded at $16.1450, with a volume of 2,287,735 shares trading hands.

Analyst Ratings Changes

DNOW has been the topic of a number of research reports. Wall Street Zen raised DNOW from a "sell" rating to a "hold" rating in a research note on Saturday, August 8th. Weiss Ratings upgraded DNOW from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Thursday, October 8th. Susquehanna increased their target price on DNOW from $16.00 to $19.00 and gave the company a "positive" rating in a research report on Friday, August 7th. Freedom Broker lowered shares of DNOW from a "buy" rating to a "hold" rating and set a $18.00 target price for the company. in a report on Thursday, September 10th. Finally, DA Davidson boosted their price target on shares of DNOW from $17.00 to $19.00 and gave the stock a "buy" rating in a research report on Monday, August 10th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $18.20.

DNOW Price Performance

The company has a current ratio of 2.14, a quick ratio of 1.06 and a debt-to-equity ratio of 0.23. The firm's 50-day moving average price is $15.82 and its 200-day moving average price is $14.11. The stock has a market capitalization of $2.92 billion, a PE ratio of -15.09 and a beta of 0.95.

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

Institutional Investors Weigh In On DNOW

Several institutional investors have recently modified their holdings of DNOW. BlackRock Inc. bought a new position in DNOW during the second quarter valued at $374,942,000. Engine Capital Management LP purchased a new stake in shares of DNOW in the first quarter valued at $61,525,000. First Trust Advisors LP raised its stake in shares of DNOW by 2,335.0% in the first quarter. First Trust Advisors LP now owns 4,065,728 shares of the oil and gas company's stock valued at $48,423,000 after acquiring an additional 3,898,758 shares during the period. Barrow Hanley Mewhinney & Strauss LLC purchased a new stake in shares of DNOW in the second quarter valued at $42,540,000. Finally, ACK Asset Management LLC bought a new stake in shares of DNOW in the 2nd quarter worth about $38,910,000. 97.63% of the stock is owned by institutional investors.

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 related industrial, utility and infrastructure markets.

Its offerings include pipe, valves, fittings, flanges, and other mechanical products; production and artificial-lift equipment; electrical and instrumentation products; and maintenance, repair and operating supplies.

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