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

Key Points

• DNOW shares broke above their 50-day moving average, reaching $16.18 before last trading at $15.879, compared with a 50-day average of $15.75.
• Analyst sentiment is generally positive: DNOW has a consensus “Moderate Buy” rating and an average price target of $18.20, with several analysts raising targets to $19.
• The company exceeded quarterly expectations, reporting $0.12 in earnings per share versus estimates of $0.09 and revenue of $1.31 billion; institutional investors own 97.63% of the stock.

Shares of DNOW Inc. (NYSE:DNOW - Get Free Report) crossed above its fifty day moving average during trading on Monday. The stock has a fifty day moving average of $15.75 and traded as high as $16.18. DNOW shares last traded at $15.8790, with a volume of 1,559,435 shares.

Analyst Upgrades and Downgrades

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

DNOW Trading Up 1.2%

The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.06 and a current ratio of 2.14. The business has a fifty day simple moving average of $15.75 and a 200 day simple moving average of $14.03. The stock has a market capitalization of $2.87 billion, a price-to-earnings ratio of -14.84 and a beta of 0.89.

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

Hedge Funds Weigh In On DNOW

Hedge funds have recently bought and sold shares of the business. BlackRock Inc. bought a new stake in DNOW in the 2nd quarter valued at about $374,942,000. Wellington Management Group LLP grew its position in shares of DNOW by 15.6% during 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 in the last quarter. Engine Capital Management LP bought a new position in shares of DNOW during the first quarter worth approximately $61,525,000. First Trust Advisors LP increased its holdings in shares of DNOW by 2,335.0% during the first quarter. First Trust Advisors LP now owns 4,065,728 shares of the oil and gas company's stock worth $48,423,000 after purchasing an additional 3,898,758 shares during the period. Finally, Barrow Hanley Mewhinney & Strauss LLC bought a new position in shares of DNOW during the second quarter worth approximately $42,540,000. 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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