DNOW (NYSE:DNOW) Stock Breaks Above Two Hundred Day Moving Average - Should You Sell?

Key Points

• DNOW shares moved above their 200-day moving average of $14.10, trading as high as $14.32 and last at $14.275; the 50-day average was $15.59.
• Analyst sentiment is broadly positive: the stock has a “Moderate Buy” rating and an average price target of $18.00, with recent target changes ranging from $18 to $19.
• DNOW reported quarterly EPS of $0.18, beating the $0.15 consensus, while revenue of $1.34 billion came in just below expectations; revenue rose 110.9% year over year.

Shares of DNOW Inc. (NYSE:DNOW - Get Free Report) passed above its two hundred day moving average during trading on Wednesday. The stock has a two hundred day moving average of $14.10 and traded as high as $14.32. DNOW shares last traded at $14.2750, with a volume of 1,737,468 shares changing hands.

Wall Street Analysts Forecast Growth

DNOW has been the subject of several recent research reports. DA Davidson increased their price target on DNOW from $17.00 to $19.00 and gave the company a "buy" rating in a report on Monday, August 10th. Freedom Broker upgraded DNOW from a "hold" rating to a "buy" rating and set a $18.00 target price for the company in a report on Monday. Weiss Ratings raised DNOW from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Thursday, October 8th. Wall Street Zen upgraded DNOW from a "sell" rating to a "hold" rating in a report on Saturday, August 8th. Finally, Susquehanna lowered their price target on shares of DNOW from $19.00 to $18.00 and set a "positive" rating on the stock in a research report on Friday, November 6th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, DNOW currently has an average rating of "Moderate Buy" and an average price target of $18.00.

DNOW Stock Up 4.0%

The business has a 50 day simple moving average of $15.59 and a 200 day simple moving average of $14.10. The company has a market capitalization of $2.57 billion, a price-to-earnings ratio of -12.31 and a beta of 0.95. The company has a debt-to-equity ratio of 0.18, a current ratio of 2.08 and a quick ratio of 1.07.

DNOW (NYSE:DNOW - Get Free Report) last announced its earnings results on Thursday, November 5th. The oil and gas company reported $0.18 EPS for the quarter, beating analysts' consensus estimates of $0.15 by $0.03. The company had revenue of $1.34 billion during the quarter, compared to analysts' expectations of $1.35 billion. DNOW had a positive return on equity of 3.77% and a negative net margin of 3.89%. DNOW's revenue for the quarter was up 110.9% on a year-over-year basis. During the same period last year, the business posted $0.26 EPS. As a group, equities analysts predict that DNOW Inc. will post 0.37 earnings per share for the current fiscal year.

Hedge Funds Weigh In On DNOW

Several hedge funds and other institutional investors have recently added to or reduced their stakes in DNOW. Pinnacle Wealth Planning Services Inc. boosted its holdings in DNOW by 13.8% in the third quarter. Pinnacle Wealth Planning Services Inc. now owns 5,693 shares of the oil and gas company's stock valued at $88,000 after purchasing an additional 689 shares during the period. Pullen Investment Management LLC increased its holdings in DNOW by 0.6% during the 3rd quarter. Pullen Investment Management LLC now owns 230,772 shares of the oil and gas company's stock worth $3,577,000 after purchasing an additional 1,344 shares during the period. Nykredit A S purchased a new stake in DNOW during the 2nd quarter worth about $26,000. Sequoia Financial Advisors LLC increased its holdings in DNOW by 2.4% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 86,530 shares of the oil and gas company's stock worth $1,122,000 after purchasing an additional 2,029 shares during the period. Finally, Illinois Municipal Retirement Fund raised its position in DNOW by 2.3% in the 3rd quarter. Illinois Municipal Retirement Fund now owns 93,246 shares of the oil and gas company's stock valued at $1,445,000 after purchasing an additional 2,140 shares in the last quarter. Hedge funds and other institutional investors own 97.63% of the company's stock.

DNOW Company Profile

DNOW Inc. NYSE: DNOW distributes products and provides supply-chain and related services to energy and industrial customers. Its offerings include pipe, valves, fittings, flanges, instrumentation, electrical products, and safety and maintenance supplies. The company supports customers across the energy value chain, including upstream, midstream, and downstream operations, as well as other industrial markets. Its services include procurement, inventory management, logistics, and technical support, with operations serving customers in North America and international markets.

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